1. Industrial R&D as a Growth Engine Dr. Eli Opper - Chief Scientist Head of Innovation and Industrial R&D Administration Ministry of Industry, Trade and Labor Dr. Eli Opper - Chief Scientist Head of Innovation and Industrial R&D Administration Ministry of Industry, Trade and Labor The Herzliya Conference, 3 rd February 2009

2. Some Facts About Our World  Population: 6.6 billion  Forecast for 2050: 9.4 billion people  900 million people are hungry  33 million people are infected with HIV  1.1 billion people do not have access to clean water  5.2 billion people do not have access to internet  3 billion are not using cell phones  Barrel of oil $40 → $147 → $40  Population: 6.6 billion  Forecast for 2050: 9.4 billion people  900 million people are hungry  33 million people are infected with HIV  1.1 billion people do not have access to clean water  5.2 billion people do not have access to internet  3 billion are not using cell phones  Barrel of oil $40 → $147 → $40

3. And now what?

4. “ Heavier-than-air flying machines are impossible" Lord Kelvin, 1895

5. “640 K Ought to be enough for anybody " Bill Gates, 1981

6. Charles Darwin “It’s not the strongest of the species that survives, nor the most intelligent; it is the one that is most adaptable to change” Charles Darwin

7. Expenditure on Civilian R&D as a percent of the GDP in Israel and in OECD Countries 4.6 3.6 3.2 3.0 2.7 2.42.4 2.3 2.2 2.1 2.02.0 1.9 1.8 1.61.61.6 1.41.4 1.3 1.1 1.0 0.9 0.8 0.70.7 0 1 2 3 4 5Israel Sweden Finland Japan Switzerland Korea Germany Iceland USA Denmark France Belgium Netherlands Austria UK Norway Canada Ireland Australia Czech Republic New Zeland Italy Spain Portugal Greece Slovak Republic If you lie on the ground, you cannot fall …

8. International Activities Academia Industry Preferred Sectors BUDGET Quality of Service to the Customer Strategy:

9. Activities of the O.C.S. Magnet Magneton, Nofar Magnet Magneton, Nofar R&D Fund Tnufa Technological Incubators R&D Centers in Universities R&D Centers in Universities Support of Research Institutes Support of Research Institutes Support of Traditional Industry Support of Traditional Industry Seed Fund Bi-National Agreements Bi-National Agreements EU R&D Program FP-7 EU R&D Program FP-7 Global Enterprise R&D Cooperation Framework Global Enterprise R&D Cooperation Framework US-Israel Science & Technology Commission US-Israel Science & Technology Commission Bi-National Funds Eureka Matimop Chief Scientist Dr. Eli Opper Chief Scientist Dr. Eli Opper Activities in IsraelInternational Activities Evaluating

10. OCS 2008 Some Figures No. Of Applications No. Of Applications: ~2000 Projects Requested Budget: ~6.5 Billion NIS Total Grants: Total Grants: ~1.65 Billion NIS

11. OCS Annual Budgets (Billion NIS)

12. Targeted Formation for R&D Case Study: Traditional Industry as a preferred sector 2006 – 2008: M 180 NIS in 200 projects Strategic consultation Guidance and evaluation services

13. Encouraging Innovation While Embracing Tradition source: The Economist

14. Preferred Sector: Nanotechnology  6 R&D Centers (Telem) $300M/5 Years  NOFAR Program  Infrastructure (Telem)  6 R&D Centers (Telem) $300M/5 Years  NOFAR Program  Infrastructure (Telem)

15. Global Network for Transfer of KnowledgeOECD

16. International Cooperation Foundations: BIRDF-with U.S.A. USISTC/F SIIRD-with Singapore CIIRDF - with Canada KORIL-RDF - With S. Korea BRITECH–with the UK

17. International Cooperation Maryland, Victoria, Ontario France Belgium China Finland Germany Holland Italy India Taiwan Hungary Sweden Portugal Turkey Brazil Argentina Greece Denmark Bi-National Support Agreements : Uruguay

18. Total Figures for 2006-2008: International Cooperation source: OCS Data $M210 in 520 Projects

19.  Small Enterprises – 520 Projects in R&D Fund  Incubators – 100 projects  MAGNET - 13 Consortia  Magneton – 24 Projects  Nofar – 14 Projects  Katamon – 3 Projects  Nataf – 9 Projects  Small Enterprises – 520 Projects in R&D Fund  Incubators – 100 projects  MAGNET - 13 Consortia  Magneton – 24 Projects  Nofar – 14 Projects  Katamon – 3 Projects  Nataf – 9 Projects Government Academia Industry

20. Some Dilemmas, January 2009  Encouragement of Researchers  What will stay in Israel?  Should the OCS declare preferred sectors?  TTO ’ s objective  What will stay in Israel?  Big Companies  Small Companies?  And what about the ‘ Tsunami ’ ?  Encouragement of Researchers  What will stay in Israel?  Should the OCS declare preferred sectors?  TTO ’ s objective  What will stay in Israel?  Big Companies  Small Companies?  And what about the ‘ Tsunami ’ ?

21. There is always room also for the small ones Before …

22. There is always room also for the small ones

23. Excellence is a Key Success Factor