1. Ministry of Industry Trade & Labor Office of the Chief Scientist Traditional Industries Upgrade Program Arnon Keret Program Director Ministry of Industry Trade & Labor Office of the Chief Scientist

2. Ministry of Industry Trade & Labor Office of the Chief Scientist Year R&D Expenditure in the Industry Percentage Of Annual Turnover All sectors excluding Hi-Tech

3. Ministry of Industry Trade & Labor Office of the Chief Scientist Traditional Industries Upgrade Program The Objectives: Provide mentoring and assistance in strategic planning Encouraging R&D Culture Developing High-end products

4. Ministry of Industry Trade & Labor Office of the Chief Scientist Traditional Industries Upgrade Program The Challenges: Encouraging investments in R&D despite lack of resources and harsh competitive environment. Establishing Different evaluation scale for R&D programs submitted by Traditional Industries to the OCS.

5. Ministry of Industry Trade & Labor Office of the Chief Scientist Traditional Industries Upgrade Program OCS’ Unique benefits for Traditional Industries: Separate sessions of the research committee Automatic 50% grant for approved R&D program Retroactive funding (50% participation) of 4 months salary for qualified R&D employee Participation in in funding of moulds which are required for the R&D program. Participation in acquisition of technology / IP (IRC)

6. Ministry of Industry Trade & Labor Office of the Chief Scientist Traditional Industries Upgrade Program 2006: 64 R&D projects approved (87M NIS) 2007: 63 R&D projects approved (109M NIS) Budget requirement forecast: 2008:150M NIS 2009:320M NIS

7. Ministry of Industry Trade & Labor Office of the Chief Scientist Thank you