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R&D and Innovation as a Growth Engine – The Israeli Model and the Role of the OCS

R&D and Innovation as a Growth Engine – The Israeli Model and the Role of the OCS. Ministry of Industry, Trade and Labor ISRAEL. Ministry of Industry, Trade and Labor. Office of the Chief Scientist. Some Facts About Our World. Forecast for 2050: 9.4 billion people

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R&D and Innovation as a Growth Engine – The Israeli Model and the Role of the OCS

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  1. R&D and Innovation as a Growth Engine –The Israeli Model and the Role of the OCS Ministry of Industry, Trade and Labor ISRAEL

  2. Ministry of Industry, Trade and Labor Office of the Chief Scientist Some Facts About Our World • 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 • 5.1 billion people do not have access to internet • 2.75 billion are not using cell phones • Barrel of oil $40 →$147 →$70

  3. And now what?

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

  5. Expenditure on Civilian R&D as a percent of the GDP in Israel and in OECD Countries 2008 5 4 . 5 4 3 . 6 3.4 3.2 3.2 2.7 3 2.5 2 . 3 2 . 2 2 . 1 2 . 0 2 . 0 1 . 9 1 . 8 2 1 . 6 1 . 6 1 . 6 1.4 1 . 4 1 . 4 1 . 1 1 . 0 1.0 0 . 9 0.9 1 0 . 7 0 UK Italy Spain Korea USA Israel Russia Finland Japan Greece China France Iceland India Austria Belgium Canada Norway Australia Sweden Switzerland Germany Brazil Denmark New Zealand Netherlands Source: OECD and Israel CBS If you lie on the ground, you cannot fall…

  6. Scientists & Technicians per 10,000 Workers

  7. Ministry of Industry, Trade and Labor Office of the Chief Scientist Patents (2008) • Israel ranked #1 in Medical Device patents per capita • Israel ranked #5 in number of patents per capita Source: The United States Patent and Trademark Office (June 2008)

  8. Innovation = Economic Growth “If you want real growth, you have to have new technologies” Source: Business Week

  9. Ministry of Industry, Trade and Labor Office of the Chief Scientist Activities of the OCS Chief Scientist Dr. Eli Opper International Activities Activitiesin Israel Support of Research Institutes Bi-National Funds Tnufa Matimop Support of Traditional Industry Seed Fund Bi-National Agreements TechnologicalIncubators Eureka R&D Centers in Universities EU R&D Program FP-7 Evaluating Global Enterprise R&D Cooperation Framework Magnet Magneton, Nofar US-Israel Science & Technology Commission R&D Fund

  10. ISERD (Europe FP) OCS Instruments Along The Value Chain Pre-Seed Generic R&D Competitive R&D Cooperative R&D Tnufa Magnet Industrial R&D TechnologicalIncubators Magneton Seed Fund National Nofar Support of Traditional Industry Infrastructure for R&D Support of Research Institutes Bi-national Funds Bi-national Agreements International Galileo EUREKA! Global Enterprises R&D Cooperation Applied Academic Research Basic R&D Market Proximity

  11. Ministry of Industry, Trade and Labor Office of the Chief Scientist Strategy: Quality of Service to the Customer International Activities BUDGET Preferred Sectors Academia Industry

  12. Encouraging Innovation While Embracing Traditionsource: The Economist

  13. Ministry of Industry, Trade and Labor Office of the Chief Scientist R&D Fund Competitive R&D • 2008 Budget – NIS 1,650 M, ~2000 requests per year • Supports competitive R&D of mature companies (SME’s as well as big companies) • Target: establish and develop substantial industrial R&D infrastructure • Grants between 30-50% of R&D plan, royalties payments - obligatory upon success • Acquisition and transfer of knowledge due to special approvals • Budgetary platform for all bilateral parallel agreements

  14. Ministry of Industry, Trade and Labor Office of the Chief Scientist Technological Incubators Pre-Seed & Seed R&D • 2008 Budget – NIS 175 M • A framework for nascent companies to develop their innovative technological ideas into start-ups that can attract private investors • Suitable facilities for R&D activity & administrative and logistic support to projects 24 Incubators 2 Industrial Incubators 1 Biotechnology incubator 8-10 projects in each Grants- up to 85%

  15. Ministry of Industry, Trade and Labor Office of the Chief Scientist Magnet Generic R&D • 2008 Budget – NIS 190 M • Supports consortia of industrial companies and academic institutions. • Target: jointly develop generic, pre competitive technologies or dissemination existing new technologies. • The technology cannot be acquired from commercial sources at competitive prices • Grants of up to 66% - no royalty repayments • Magneton, Nofar, Nataf, Katamon

  16. Preferred Sector: Traditional Industry • 2006 – 2008: M 180 NIS in 200 projects • Strategic consultation • Guidance and evaluation services From Low Tech to High End

  17. Ministry of Industry, Trade and Labor Office of the Chief Scientist Preferred Sector: Nanotechnology • 6 R&D Centers • $278M/5 Years • NOFAR Program • Infrastructure

  18. Ministry of Industry, Trade and Labor Office of the Chief Scientist AcademiaIndustry • 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

  19. Ministry of Industry, Trade and Labor Office of the Chief Scientist Academia Industry • 6 Nanotechnology R&D Centers • 4 R&D Institutions • 1 Biotechnology R&D Institution • 2 R&D Centers: Water, Energy

  20. Global Network for Transfer of Knowledge

  21. Ministry of Industry, Trade and Labor Office of the Chief Scientist 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

  22. International Cooperation Ministry of Industry, Trade and Labor Office of the Chief Scientist China Finland Germany Holland Bi-National Support Agreements: France Italy Belgium India Taiwan Portugal Hungary Sweden Turkey Uruguay Brazil Argentina Denmark Greece Maryland, Victoria, Ontario

  23. Ministry of Industry, Trade and Labor Office of the Chief Scientist Future Cooperation in R&D Israel and Russia Options: • Bi-National Fund • Bi-National Support Agreement: • Agency (such as MATIMOP) to Agency (such as RUSNANO) or • Government to Government • Within Multilateral platforms such as • Eureka

  24. International Cooperation Total Figures for 2006-2008: $210M in 520 R&D Projects source: OCS Data

  25. Ministry of Industry, Trade and Labor Office of the Chief Scientist Where Technology Meets Creativity

  26. OCS Grants by Technological Sectors 2008

  27. No. Of Applications:~2000 Projects Requested Budget: ~6.7 Billion NIS Total Grants:~1.75 Billion NIS Ministry of Industry, Trade and Labor Office of the Chief Scientist OCS 2009 Some Figures

  28. 8 9 10 5 12 7 6 11 14 17 16 19 18 15 13 GOING TO THE FUTURE 2004

  29. Electronics: 15% Life Sciences: 28% Electro-Optics: 7% Other: 5% Chemicals: 4% Communications: 33% Software: 8% OCS Grants by Technological Sectors - Forecast Converging Technologies? 2019 Energy/Water/Environment? High-end Industry? Bio? Nano?

  30. There is always room also for the small ones

  31. Ministry of Industry, Trade and Labor Office of the Chief Scientist Excellence is a Key Success Factor

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