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Incentive Program for the Encouragement of the Establishment of Project Centers of Multinational Companies in Israel

This incentive program aims to encourage multinational companies engaged in low-tech or medium-low tech industries to establish project centers in cooperation with an Israeli entity, focusing on creating R&D activity in the periphery and low-tech industries.

Goal of the incentive program:
The support provided under this program, as a government grant, is intended to encourage the establishment of  project centers and their operation on an ongoing basis, and is not only for projects carried out within the framework of these centers.

Who is the incentive program for?

  • Multinational companies that meets both of the following conditions:
  • The total sales volume of the company was more than $2.5 billion in the calendar year prior to application.
  • Industrial company engaged in low-tech or medium-low tech industry.
  • Israeli partner – an Israeli company or academic research group that is not related directly or indirectly to the multinational company.
  • Project center – an Israeli company fully owned by the multinational company and functioning as its representative in Israel.

What do you get?
A government grant in the minimum amount of the following three options:

  • 40% of the operating expenses of the project center.
  • 50% of the total investments in all the projects carried out with the Israeli partners.
  • The volume of investments in a project center in the periphery and in the low-tech industry, while applying a coefficient of 115% for incentive programs operating in Development Area A, and a coefficient of 85% for incentive programs operating in Development Area B.

Why should you apply for this incentive program?
Strategic partnerships:
Large corporations and multinational companies possess distinct advantages in commercialization, manufacturing and marketing of products. This incentive program encourages networking and strategic partnerships between multinational companies and innovative Israeli technology companies, seeking to reach new markets and business channels in Israel and abroad.

Contribution to the fostering of the periphery: The companies participating in this incentive program constitute an economic engine and contribute to the fostering of innovation, as well as reduction of the gaps between the periphery and the center.

How to apply?
Companies interested in being recognized as project centers should submit their application to the incentive program manager. The application must include details regarding the following conditions:

  1. The company's incorporation in Israel.
  2. The company being wholly owned by the multinational company.
  3. The company functions as the representative of the multinational company in Israel.
  4. The multinational company should issue a statement that it plans to operate a project center in Israel for at least five years.
  5. A statement of the company that it can carry out projects with other Israeli companies or academic institutions, while providing technological support, and will present the project to the multinational company.
  6. The multi-annual plan relates to projects expected to be operated as part of the project center.
  7. The company's obligation to act in accordance with the regulations of the Authority.
  8. Details on the company's managers.

For additional information, please contact:
International Collaboration Division

Further information on the Israel Innovation Authority website: Project Centers of Multinational Companies


United States - Israel Science & Technology Commission

The United States-Israel Science & Technology Commission operates though the Israel Innovation Authority and promotes joint activities in science and technology, in order to create mutual economic benefits for both countries. 


The Commission periodically defines priority fields for its activities, including biotechnology, telecommunications, information technology (especially software for medical use), nanotechnology, green technologies (renewable energy, water technology) and national security.