April 20, 2021

New Calls for Proposals by the Israel Innovation Authority

Orit Gonen, Partner
Orit Gonen


Gilat, Bareket & Co.

The Israel Innovation Authority (IIA) recently published new calls for proposals to participate in new programs aimed at providing support in different fields[1].

One call invites companies and manufacturers in the process of transitioning over to production to submit applications to receive financial support for the development of manufacturing processes, provided that at least two-thirds of the grant applied for is dedicated to this development.

The second call relates to a competition for the selection of up to three franchisees to set up tech incubators under the new 2020 tech incubators track (known as incentive track #4).

The program is designed to encourage early-stage investment (pre-seed and seed funding) in tech ventures through incubators providing supporting infrastructure, in order to accelerate innovative tech ventures’ transformation into startups capable of raising capital investments.

These incubators will focus on areas such as bio-convergence, food tech, agritech and climate tech, which involve high-level complexity and tech innovation and are considered high-risk for investments.

A third call recently published by the IIA relates to building a framework for synthetic biology (to be established by an association of users or a corporation). This field is still in its youth globally as it is in Israel and consequently suffers from a market failure stemming from much-needed high-risk investment, knowhow development, and R&D equipment currently inaccessible to most industries in Israel (and around the world). This call adds to an already existing national plan calling for a leading bio-convergence industry in Israel, and the IIA’s vision is that the platform will satisfy industry needs and provide services to users in industry, academia and the defense sector.

Although most IIA publications are available in English on its website, the calls should be read carefully in order to fully understand the legal arrangement the IIA operates under, namely the 1984 Encouragement of Industrial Research and Development Act (or simply the R&D law), the law’s accompanying regulations and each of the IIA program’s specific terms. The R&D law sets forth various conditions and restrictions regarding major issues such as ownership and use of technology developed and funded with IIA support as well as restrictions pertaining to the tech’s commercialization internationally. One should be well-acquainted with these conditions and restrictions before applying for a grant since they could bear impact on any future business plans. It is also strongly recommended to know beforehand whether a technology to be possibly purchased (or licensed) has already been supported by the IIA and is thus subject to R&D law conditions and restrictions or to the terms of any of its specific programs.

[1] https://bit.ly/3anznA8

This article is provided for general information only. It is not intended as legal advice or opinion and cannot be relied upon as such. Advice on specific matters may be provided by our group’s attorneys.

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