Global Enterprise Collaboration Program
It’s a well-known fact that the vast majority of breakthrough technologies coming out of Israel are developed by relatively small startup companies. While startup companies are usually very creative and highly efficient in conducting R&D, commercialization of newly developed products has always been a challenge, due to their very limited resources.
Large companies, on the other hand, especially leading multinational corporations (MNCs), have a strong advantage in commercialization, manufacturing and marketing of new products worldwide. Startup companies and MNCs can both benefit from collaboration, by sharing the risk of R&D investment and relying on the facilities of MNCs for “whole product” development and market penetration.
In order to encourage the creation of MNC-Startup partnerships in Israel, the Office of the Chief Scientist (OCS) has established a dedicated Global Enterprise Collaboration Program.
BASIS FOR COLLABORATION
This framework provides a friendly, favorable approach and supportive work environment (“one-stop-shop”) for Israeli start-up companies looking to collaborate with MNCs. Within the framework, both THE OCS and the MNC commit to equally invest in pre-selected R&D projects, conducted jointly by the MNC and the Israeli company.
The MNC can invest in cash and/or in kind, i.e. it can provide the start-up with facilities like: technological guidance, borrowing equipment, using labs, discounted software licenses, regulatory advice, etc., instead-of or in addition to cash funding.
For a full list of the multinational corporations participating in the program, click here.
Main benefits to the parties:
- Risk-sharing of the R&D investment between the MNC, the Start-up and the OCS
- Preferential access to know-how and technologies which are not otherwise readily available to the participants, as well as assistance in identifying partners
- Improving the prospects for successfully marketing and supporting the developed product or service internationally
Israeli companies, which are interested in submitting a proposal for a joint R&D project with the MNC, enlisted in the framework, will be required to follow a two-stage procedure:
- Submitting an executive summary for the purpose of selection and approval by the MNC, according to the MNC internal procedures. This summary can be submitted for instance, but not necessarily, as a reply to a Call for Proposals being issued jointly by the MNC and the OCS.
- Applying for an OCS grant, according to the regular OCS procedures, once the MNC has approved the proposal and its participation in the joint project
Multinational Corporations are qualified to join the framework, subject to:
- Annual revenues over USD 2 billion
- Significant investment in R&D
- World wide presence
Israeli companies are qualified to apply, subject to:
- Strong R&D focus
- Annual revenues not exceeding USD 70M
- No affiliation with the MNC
The basic requirements from the joint project:
- Involves both parties in the R&D
- Treating the IP in accordance with the OCS guidelines
- Synergy with the MNCs core business
Intellectual Property Rights
Basically there are 3 possible ways of treating the IP of the joint project:
- Sole ownership by the Israeli company
- Providing a non-exclusive license to the MNC
- Joint ownership by the Israeli company and the MNC
- The R&D Law permits the MNC to have such joint ownership (or a non-exclusive license) of the IP with the Israeli company, if mutually contributing to the development of the IP. In such a case, the right of the Israeli company to use the new know-how would be subject to the R&D Law. However, the MNC would have the unrestricted, royalty-free right to use the new know-how inside or outside of Israel, provided that the right of the Israeli company to use/exploit the new know-how is not negatively affected.
CALLS FOR PROPOSALS:
for a full listing of all the open calls for proposals.
FOR MORE INFORMATION:
Head, MNC Collaboration
Office of the Chief Scientist
Tel. 03-5118116 ext. 3