Skip to content

Technological Innovation in Industry Focused on Public Sector Challenges

This incentive program was launched by the Authority as part of the “Digital Israel” project of the Ministry for Social Equality. The incentive program serves as an additional tool of the government to encourage innovation through preliminary purchase of innovative technological solutions.

The incentive program offers two channels of support:

  1. Preliminary R&D incentive program intended for technological feasibility and/or feasibility of the business idea for the development of a product/service/process or a material improvement of an existing product/service/process.
  2. “Innovation in the public sector” R&D incentive program intended for R&D of a product/service/process or a material improvement of an existing product/service/process.

Goal of the incentive program:
To identify and publish public challenges requiring response and support, as well as to assist entrepreneurs in developing innovative products and processes that will address the challenges and needs of the public sector. These products should improve the quality of services provided by government departments or public entities, including better access to public services, reduction of government bureaucracy, better protection of public information, and easier access to information for the public.

Who is the incentive program for?
Israeli companies or private Israeli entrepreneurs seeking to develop, manufacture, and commercialize products, services, and processes that will support the goals of this incentive program. Applications to join the incentive program will be examined according to the technological innovation criteria and the response to the needs defined as prioritized by the Digital Israel Fund.

What do you get?

  • Preliminary R&D track: Financial support of up to 90% of the approved budget or a conditional grant in the amount of NIS 300,000 for a period of 18 months.
  • R&D track:  Financial support of up to 50% of the approved budget or a conditional grant in the amount of NIS 4 million for a period of 24 months.

Why should you apply for this incentive program?
Attractive financing model:
The incentive program offers participation in the risks involved in the development process, but not in the revenues or future achievements. The companies that receive financing undertake to repay the received funding to the Authority via royalty payments from sales, but only if the project succeeds in reaching the commercialization stage.

No royalties: Sales to the state, government companies, and public corporations in Israel are exempt from paying royalties.

First significant customer: The government may allow a “field trial” on a large scale and based on national infrastructure. Success in proving the feasibility and selling to a government customer provides a springboard to other markets in Israel and the world.

How to apply?

  1. Prior to application, please carefully read the complete list of incentive program conditions, as detailed on the Authority’s website.
  2. Fill out the online application forms in accordance with the company size and guidelines detailed on the website. In addition to the online application, please fill out the declaration and authorization form and send it by mail.

For additional information, please contact:
Societal Challenges Division

Further information on the Israel Innovation Authority website: Technological Innovation in the Industry Focused on the Public Sector Challenges


General Initiatives and Programs

Tax Benefits for Companies and Investors  ●  Encouraging Hi-Tech Companies to Go Public on the Israeli Stock Exchange  ●  The Israel Brain Gain Program – Bringing Knowledge Back to Academia and Industry