Plans for New R&D Grant To Encourage High-Risk Ventures
Israel’s Innovation Authority is planning an R&D program that will offer grants of up to 50% for eligible expenditure for corporations with sales over $100 million. NIS 70 million is to be allocated for supporting long-term projects carried out by high-tech companies.
Eligible companies will need to have an annual R&D expenditure of at least $20 million or have at least 200 employees working in R&D. Companies that qualify for the incentive will not have to pay royalties to the Innovation Authority following product development.
There are around 20 Israeli businesses who will qualify for this new grant. Companies that can benefit from the program include Wix.com Ltd., Verint Systems Inc. and SolarEdge Technologies Inc.
The R&D grant will aim to help companies maintain a technological edge over competitors, allow penetration of new markets and ensure continued growth for the companies and Israeli economy. It will also encourage high-risk projects to be undertaken, which will solicit technologies to be used in future products.
Acting Director of Innovation Authority, Sagi Dagan said that the program focuses on ventures that are smaller, but that involve very high risk. She commented that “Even if a venture is unsuccessful, know-how will be accumulated and will stay within the company, which will apply it in the future.”
The expertise obtained from the R&D will be required to be registered in Israel, enabling the country to profit in the long term. CEO of Innovation Authority, Aharon Aharon explained that “Cooperation between government and the high-tech industry at this stage is essential in order to fully utilize the assets accumulated by the industry, expedite its maturation trends, and leverage the benefits for the good of the Israeli economy.”
Various R&D grants are available for Israeli businesses. To assess your eligibility for these incentives, contact the experts at Swanson Reed R&D Tax Advisors.