The Office of the Chief Scientist Calls for Proposals for Establishing and Operating Technological Incubators in Israel
The Technological Incubators Program of the Office of the Chief Scientist at the Ministry of Economy issues competitive Processes for establishing and operating four Technological Incubators in Israel in accordance with General’s Directive 8.3 dated 16th March 2015.
The Technological Incubators Program is currently embarking on three competitive processes to choose four licensees holders who will establish and manage technological incubators for a period of eight years. During this time, the licensees will be able to submit requests for government support to innovative technological initiatives which have passed the state’s examination and deemed worthy. The incubators will be established in the Tel Aviv and Jerusalem areas.
This is the final stage in the reform of the Technological Incubators Program that began in 2011. Over a period of 3 years 11 incubator operators were selected. Their shareholders include major companies such as Philips, Teva, and Strauss, who won recent bids.
Since its establishment in 1991, the Incubators Program has generated nearly 1,600 companies, dozens of which went on to IPO and over half raising additional investments.
Prominent companies founded in recent years as a result of the incubator program achieving outstanding results include: Neuroderm, graduate of the Ofakim incubator, issued late last year at a value of $164 million (raising $45 million in the IPO); Steadymed, graduate of the Rad BioMed incubator, listed this year on NASDAQ at a value of $100 million (raising $40 million in the IPO); and CyActive, graduate of the JVP Cyber incubator, acquired this year by PayPal for $60-80 million (becoming PayPal’s development center in Israel).
As a result of the Director-General’s instructions, updated recently several changes were made. Most significantly, preference of a group with more than one shareholder in order to ensure wide-ranging support for companies. Raising the minimal commitment to NIS 50 million can also help prove the capability to support incubated companies further down the line.
Chief Scientist at the Ministry of Economy, Avi Hasson: “The Technological Incubators Program is one of the flagship programs of the Office of the Chief Scientist, and the recent competitive processes attest to the program’s appeal, with powerful groups and organizations in the financial and business areas competing over the right to establish a technological incubator”.
The program is a successful collaboration between the government and the private sector, and is considered a “major generator” of start-up companies in Israel. It features a unique model that has generated worldwide interest.
For General’s Directive, an explanation about the method of submitting proposal and further particulars: www.incubators.org.il
For more information on the Chief Scientist’s Technological Incubator Program and success stories can be found here.