Chief Scientist (OCS)
Why apply: Accessible, fast, significant and sustainable source of finance
Grants to Israeli organizations: Approximately 1.3 billion NIS per year
Application success rate: 70%
Grant size: Between 500,000 NIS and 40 million NIS ($125K-$10M) annually
Grant rate: 30%-50% of approved budget
Submission Date: Any time, one submission per year (with some exceptions)
Good to know: It is possible to sell the company or go public regardless of the OCS funding
The Israeli Office of the Chief Scientist (OCS) encourages the development of innovative products by providing competitive R&D grants valued at approximately 1.3 billion NIS per year to companies engaging in such devlopments. The grants are distributed to the most worthy and suitable projects, according to the ranking of the proposals in an award committee. The typical grant provided to a company successfully submitting a proposal to the OCS for the first time is 1 million NIS, and may increase significantly with the development of the company over the years. The proportion of the grant varies from 20% to 50% of the approved R&D budget. Contrary to common belief, it is possible to export production and knowledge supported by Chief Scientist abroad (following an amendment to the R&D law of 2005).
Criteria for Eligibility:
- Degree of technological innovation
- Large and attractive market
- Ability of the company to succeed in development and commercialization
- Existence of complementary finance (capital investment, sales, bank credit, etc.)
Implications of the Amendment to the R&D law (2005) from the perspective of the shareholder – in various scenarios:
1. Intellectual property and production in Israel – highly attractive – inexpensive loan, no guarantees, convenient repayment (3-3.5% of sales).
2. Intellectual property remains in Israel, production moves abroad – Possible. Repayment according to scale of production abroad
- It is possible to announce in advance about production abroad and receive a reduced grant amount (without production restrictions)
- If production abroad was not announced in advance, it is possible to export production in return for an increase in royalties in amounts of 20% to 200% (in accordance with the scale of production abroad)
- Reduction mechanisms: technological depreciation, paid royalties, production of substitute product in Israel
3. Intellectual property and production moves abroad (aquisition) – Possible. Repayment determined by the OCS formula: ratio of accumulated OCS grants to accumulated investments including OCS grants multiplied by the aquisition price.
- The acquiring company nearly always maintains an R&D center in Israel (in which case the intellectual property is notr seen as moving abroad)
- In case IP does move abroad it is possible to negotiate a significant reduction in repayment from that derived through the OCS formula
- Reduction mechanisms: accelerated technological depreciation, paid royalties, development of a substitute product in Israel
סאנרייז מביאה נקודת מבט חיצונית ועדכנית שהינה הכרחית לביצוע התאמה מרבית בין תכנית המו"פ לבין דרישות המדען הראשי. היד המקצועית תרמה למיצוי נכון של עיקרי התכנית,
חברתנו נעזרה בשירותי היעוץ של חברת סאנרייז בהצלחה, לאורך כל התהליך זכינו בליווי מקצועי מאוד, עם התמדה, נכונות לעזור מעבר למצופה ומקצועיות שהביאה לתוצאות המתאימות.
"צוות סאנרייז היה תמיד נכון לעזור ולענות על כל שאלה כשהמטרה לנגד עיניו היתה לאפשר ללקוח לקבל את מירב התמיכה מהמדען בצורה שתאפשר מחקר יעיל ומבטיח. - הידע והניסיון של
העבודה עם מנהל הפרויקט ועם שאר צוות סאנרייז הייתה פורה והקלה עלינו מאד את תהליך הכנת החומרים להגשת הבקשה למדען. הצוות שיתף אותנו בנסיונם ועזר לנו לשים את הדגשים
קיבלנו תמיכה נדיבה ביותר מהמדען. הרבה מעבר לציפיות שלנו - שמוליק וולר,