Incentive Program for Encouraging Innovation in the Low-Technology Industry
Sectors in low-tech industry struggle to cope with increasing global competition. To prevent stagnation and regression in the low-tech sectors, the Authority provides a variety of incentives designed especially to meet these sectors’ needs and to encourage innovation in them.
Goal of the incentive program:
To encourage low-tech enterprises to promote and implement innovative technological processes, such as the development of innovative products, improvement of existing products and production processes, and more. In addition, this incentive program assists factories and plants in developing new strategies based on technological differentiation, in order to create competitive advantages in domestic and international markets.
Who is the incentive program for?
Israeli industry sectors engaged mainly in low-tech and medium-low tech, as defined by the Central Bureau of Statistics. These sectors include: plastics, rubber, metal, glass, ceramics, building materials, textiles, wood, leather, paper, jewelry and food.
Companies that wish to determine whether their activities qualify for participation in this incentive program can apply to the Authority, requesting it to carry out a preliminary examination regarding their affiliation to the low-tech industry.
What do you get?
- Companies in this incentive program can submit applications for participation in R&D programs throughout the year.
- Recognition of the following unique expenses (in addition to expenses that are recognized for all companies):
- Expenses for the development of molds that will be incorporated into the production line of the company with an overall budget up to NIS 500,000.
- Expenses for the acquisition of knowledge that constitutes an integral part of the R&D program with an overall budget up to NIS 250,000.
- Expenses for salaries of up to three employees at a rate of less than 10%.
- Expenses for training courses and advanced studies for professional employees in the fields supported as part of this incentive program, with an overall budget up to NIS 25,000.
- Direct expenses for the development of unique production machinery.
- Expenses for marketing and commercialization activities of the incentive program products abroad, amounting to 10% of the of the approved plan budget.
- Recognition of the amortization of expensive machinery, the use of which is necessary for research purposes.
Why should you apply for this incentive program?
Favorable and customized terms: This incentive program offers all low-tech enterprises preferential terms adjusted to their needs, in order to implement development programs for future products and innovative technologies that will provide the companies with a competitive edge and allow them to penetrate new markets.
Benefits to companies that manufacture in Israel just starting R&D activities: This incentive program offers particularly beneficial conditions and exemption from paying royalties to companies that are at the beginning of their R&D activities and manufacture their products in Israel, in order to facilitate strategic decision-making to enter into and carry out an R&D program (subject to the approval of the Authority Council).
How to apply?
- Prior to application, please carefully read the complete list of conditions, as detailed on the Authority’s website.
- Fill out the online application forms designated for the companies engaged in the low-tech sectors, and attach the relevant documents, according to the company size and the budget requested.
Shortened application process: companies engaged in the low-tech sectors in Israel, which are at the beginning of their R&D activities, can submit their application through an expedited process, in accordance with the conditions specified on the Authority’s website. Theshortened application process aims to make it easier for these companies, which seek support for the first time, and to assist them in applying for this incentive program.
For additional information, please contact:
Advanced Manufacturing Division