The Israeli Government has signed a number of bilateral R & D cooperation agreements with foreign governments and the European Union in order to encourage contacts between Israel and overseas companies to facilitate joint ventures in R & D, manufacturing and marketing.

The Government of Israel places considerable importance upon international cooperation in industrial R & D. The primary reason for this are the advantages of shared costs, and minimisation of the inherent risks. These advantages benefit both of the cooperating parties and improve the prospects for successfully marketing and supporting the developed product or service internationally.

The implementation of such agreements is the responsibility of the Chief Scientist (the Israel Ministry of Industry and Trade), including finding partners and establishing ties with foreign companies. The benefit to Australian companies is clear : It gains access to Israeli technology and is also likely to derive commercial advantages from Israeli free trade agreements with the US and the European Union.

The main principles of R&D Cooperation include :

1. Both parties meeting together and having a joint program
2. Risk sharing by the governments in the form of grants to successful applicants
3. If the R&D is successful, the company will need to pay royalties to the Governments.
4. Government is providing assistance in finding suitable partners

Israel has been negotiating 2 distinct frameworks in which R & D cooperation occurs:

1. Bilateral funds
2. Bilateral agreements (Memorandum of Understanding)

Joint ventures between Israeli and overseas companies, authorised by the relevant authorities in the respected countries, will be entitled to aid from both governments according to the regulations prevailing in each country.

The Israel-US Binational Industrial Research and Development Fund (BIRD) was established in 1977 under a convention signed by both governments to promote non-defence industrial R & D.

BIRD has an independent legal status and its Board of Governors is comprised of members of both the US and Israeli governments. BIRD funds 50% of project costs and receives royalties to a maximum of 150 percent of the grant. BIRD also helps Israeli or American companies identify partners to enable them to submit joint R&D programs for funding by the fund.

For more, see: www.birdf.com

The Canada-Israel Industry and Research Development Foundation (CIIRDF) was founded at the end of 1994 and is modeled on BIRD. CIIRDF funds 50% of the joint projects of Canadian and Israeli companies and the agreement encompasses several Canadian provinces. The fund finances about seven projects per year, and promoted cooperation between Canadian and Israeli companies, using a network of more than 27 experts throughout Canada.

For more, see: www.ciirdf.ca

Signed in 1996, this agreement calls on Israel and Singapore to contribute $3 million each over the next three years to a fund supporting bi-national R & D projects.

For more, see: www.siird.org.il

The most recent agreement was only established late last year with South Korea. The find will amount to at least $6 million for three years. Each country will invest $1 million per annum, with a possible addition when required.

For more, email: azi@actcom.co.il

Britain-Israel Technology Foundation

Israel is the only country outside Europe participating in this program. Research institutes in signatory countries are eligible for funding of joint projects in partnership with the EU countries.

Programs in different sectors such as telecommunications and biotechnology are being funded, with grants normally 50% of approved budgets for cooperative research. The four year project has a fund of 17.5 billion Euro and offices are being set up that will coordinate the program and distribute fund.

For more, click here to view a PowerPoint Presentation.

ISERD aims at promoting joint Israeli-EU R&D ventures within the Framework Programme. It aims, through R&D, to contribute to Europe’s industrial competitiveness, academic excellence as well as fulfilling its citizens socio-economic needs. ISERD provides help identifying various partners and business opportunities and aid in proposal preparation. ISERD representatives participate in the Framework Programme management committees.

ISERD is an inter-ministerial directorate, founded by the Ministry of Industry and Trade, the Ministry of Science, Culture and Sport, the Planning and Budgeting Committee of the Council for Higher Education, the Ministry of Finance and the Ministry of Foreign Affairs in order to promote the Israeli participation in the European Union framework programme for R&D. The worldwide success of Israeli high-tech and R&D has now come of age within the European R&D programme. Over 3000 Israeli participations have been submitted within its various programmes. The result is nearly 800 successful Israeli participations with a total value of projects reaching 2 billion Euro. These projects enabled Israeli entities to cooperate in technological development with European industries, research institutions and universities and to showcase Israeli abilities, often in collaboration with leading European multinational corporations.

ISERD operates as the Israeli National Contact Point, offering assistance, training and consulting services to interested parties as well as working on information dissemination and raising awareness within Israel.

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