Dr. Yehoshua (Shuki) Gleitman CEO, Shrem Fudim Kelner Technologies, Managing Partner, Platinum Neurone Ventures (PNV) and Korea Global IT Fund (KGIF)

Former Director General & Chief Scientist, Israel Ministry of Industry & Trade Former CEO, Ampal-American Israel Corporation Former Head, Israel Ministry of Defense: Laser Branch Chairman, BIRD (US - Israel Industrial R&D Foundation) Chairman, SIIRDF (Singapore – Israel) Chairman, CIIRDF (Canada - Israel) Joint Chairman, US Israel Science and Technology Commission Chairman, Taiwan Israel Economic Committee Honorary Consul General, Republic of Singapore to Israel

An Overview of the Israeli Approach for Encouragement of Industrial R&D Presented by Dr. Shuki Gleitman April 2004

Government Support Option Basic R&D RISK Internationa l programs INCUBATOR S Nofar European FP Applied academic research Market proximity MAGNET Competitiv e R&D Magneton Long Range R&D Seed Fund Tnufa

Israeli Approach VATAT – Major Support Program For The Universities National Council of High Education National Academy Of Science Science Ministry OCS – Office Of The Chief Scientist National Boards Agriculture, Health - Ministries

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 O.C.S. Goals and Targets:

Activities of the O.C.S. Chief Scientist Bi-National Funds International Activities Activities in Israel U.S-Israel Science & Technology Commission European Union Programs FP-6 BI-National Agreements R&D Fund Magnet Magneton (MiniMagnet) Nofar Technological Incubators Tenufa Seed Fund EUREKA US$ 300M 60M 10M 30 M US$ 40M

OCS Programs National International Generic R&D Magnet Magneton ISERD (Europe FP) Competitive R&D Industrial R&D Fund ======== Seed Fund Pre-Seed Technological Incubators Nofar Tnufa Eureka Bi-national Funds Bi-national Agreements Cooperation R&D Matimop

Government Support Option Basic R&D RISK Internationa l programs INCUBATOR S Nofar European FP Applied academic research Market proximity MAGNET Competitiv e R&D Magneton Long Range R&D Seed Fund Tnufa

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

Magnet- generic, pre competitive research Supports the 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

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

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

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

Dr. Yehoshua (Shuki) Gleitman CEO, Shrem Fudim Kelner Technologies, Managing Partner, Platinum Neurone Ventures (PNV) and Korea Global IT Fund (KGIF)