1 Magnet Program OCS - The Office of the Chief Scientist of the Ministry of Industry Trade & Labor is responsible for implementing government policy regarding support and encouragement of industrial research and development.

2 Magnet Program O.C.S. Goals and Targets: Goals : Acceleration of economic growth Enhancing Israel’s attractiveness for investments Targets: To enhance Israeli industries competitive edge To broaden Israel’s technological infrastructure To encourage international cooperation in R&D To foster entrepreneurship

3 Magnet Program Generic R&D Magnet Magneton Competitive R&D Industrial R&D National Pre-Seed Tnufa Nofar Technological Incubators Cooperation R&D Long Range R&D Seed Fund Applied Academic Research Basic R&D Market Proximity EUREKA Bi-national Funds IRC ISERD (Europe FP) International The Government Support Programs Global Enterprises R&D Cooperation Bi-National Agreements Galileo

4 Magnet Program R&D Fund Supports industrial competitive R&D projects Grants are on a sliding scale from 20%-50% of R&D budget Royalty payment is 3%-5% of future product sales Budget: approximately $300 M/yr Supports over 1000 projects/yr from more than 500 companies

5 Magnet Program Large Companies-Long Range R&D Encourages companies that invest heavily in R&D to invest a larger portion of it in Generic Long term R&D Grants are up to 50% of the approved budget Encourages companies that invest heavily in R&D to invest a larger portion of it in Generic Long term R&D Grants are up to 50% of the approved budget No royalty payments

6 Magnet Program Magnet- generic, pre competitive Development Formation of consortia comprised of industrial firms and academic institutions in order to jointly develop generic, pre competitive technologies No royalty payments Grants are up to 66% of the approved budget Budget: approximately $60 M/yr Support the R&D of generic pre-competitive technologies. which have wide-ranging applications in numerous industries

7 Magnet Program Magneton Promotes technology transfer from academic institutions to Industry via mutual cooperation between one company and one academic research program Grants are up to 66% of the approved budget No royalty payments

8 Magnet Program Nofar Designed to support applied academic research in biotechnology & Nanotechnology in order to promote the transfer of the technology to Industry Grants are up to 90% of the approved expenses No royalty payments

9 Magnet Program Technological Incubators Provides a framework and support for nascent companies to develop their innovative technological ideas and form new business ventures that can attract private investors The program is open to private investors to become owners of the incubators and to invest in the nascent companies at an earlier stage, thus enabling a greater return on investment Grants are up to 85% of the approved expenses Budget: approximately $30 M/yr

10 Magnet Program מבנה החממה ישות משפטית עצמאית בראשות החממה - מנכ"ל מנוסה במועצת המנהלים אנשי תעשייה, עסקים ומחקר מתקנים מתאימים לפעילות מו"פ היקף: מיזמים סיוע טכנולוגי מנהלי, לוגיסטי ועסקי למיזמים

11 Magnet Program מה מציעה החממה ליזם? מקום מתאים לניהול מו”פ מימון שירותים מנהלתיים מרוכזים (מזכירות, חשבונאות, סיוע משפטי ורכש) סיוע בניהול לווי מקצועי הכוונה עסקית סיוע במסחור אפשרויות לשת"פ בין "דיירי” החממה שימוש משותף בתשתית הקיימת

12 Magnet Program The TNUFA is supporting purposes of proving the technological capabilities and/or business applications of the idea; and the protection of the entrepreneurs’ I.P. Grants are up to 85% of the approved budget Royalty payments 3% - 6% of the future product sales The Government Support Programs

13 Magnet Program Tnufa Designed to encourage and support an individual entrepreneur in his initial efforts to build a prototype, register a patent, design a business plan etc Grants are up to 85% of the approved expenses

14 Magnet Program International Cooperation

15 Magnet Program International Cooperation in R&D Forms of Cooperation Bi-National Funds Bi-National Support Agreements Other Forms of Cooperation Int’l Corporation

16 Magnet Program BIRDF-with U.S.A. SII-RD-with Singapore CIIRDF - with Canada BRITECH–with the UK KORIL-RDF - With S. Korea Bi-National Funds Int’l Corporation 9

17 Magnet Program France Belgium China Finland Germany Holland Hong-Kong Italy India Taiwan Portugal Spain Sweden Bi-National Support Agreements Int’l Corporation 10

18 Magnet Program U.S. - Israel Science and Technology Commission The European Commissions FP6 Framework for Research and Technological Development EUREKA Other Forms of Cooperation Int’l Corporation

19 Magnet Program Director: Ilan Peled July 2006 Ministry of Industry & Trade Ministry of Industry & Trade The Office of the Chief Scientist

20 Magnet Program M A G N E T Generic Pre-Competitive Technology ( Long Term R&D)

21 Magnet Program The Missing Factors Co-operation Teaming up is the Key everywhere, especially in a 7 million people country. We just do not have enough resources to accomplish our goals if everybody is on his own.

22 Magnet Program The Academic Research We Have world-class academic institutions, and they do a stunning amount of Research. WE must give the Industry access to that wealth. The Missing Factors

23 Magnet Program Magnet’s Rational uCritical Mass For building common Technologies uEfficient Exploitation of National Resources Government and Private uEncouraging Industry to Exploit Scientific Know-how uIn Research Institutes

24 Magnet Program Definition Enhance the development of the long term competitive edge of the Israeli Industry by creating clusters of companies and research institutes in areas which are important in the international markets, and we might have a relative advantage.

25 Magnet Program Magnet’s Routes  CONSORTIUM -Technology R&D Route Forming a Consortium of Companies ( >3) and Academic groups to achieve a common vision, by developing new technologies and share know-how among the members.

26 Magnet Program Magnet’s Routes Distribution and Implementation Route Forming an Association of Industrial Companies Dissemination & Assimilation Technology and sharing their experience dealing with new technologies.

27 Magnet Program Magnet’s Routes (cont) MAGNETON  MAGNETON Encouragement technology transfer Dual cooperation-Industry V Academia – 1 company versus 1 academic group doing feasibility research in order to validate chance to use the technology for new product’s development

28 Magnet Program Magnet’s Routes (cont) NOFAR NOFAR – Bridge between basic to Applied research This is an applied research in the Academia supported by Industry – finance and assistance Dedicated to Bio-technology & Nano-technology

29 Magnet Program Incentives 66% grant from approved budget No royalties payback

30 Magnet Program The Real Incentive An enormous saving in Resources, especially in Human Resources Co o p e r a t i o n !

31 Magnet Program The Model’s Advantages w Creates a Critical Mass in State of the art Technologies. w Improves Openness and Synergism w Induces Friction between Competitors. w Focuses Technological activity. w Saves Government and Private Investments. w Bridges the gap between Academia to Industry.

32 Magnet Program חוקר יזמות חברת הזנק חברה בוגרת שת"פ טכנולוגי העברת טכנולוגיה מחקר יישומי חברת חממה חממה טכנולוגית קרן המחקר תנופה נופר מגנטון מאגד קב"מ

33 Magnet Program Magnet Management General Manager: Ilan Peled Assistant General Manager:Tal Kanfi Phone: Fax: Web: