Alternative Investment Market
Business Incubation System in Israel
Table of Contents
* Introduction
* Present Condition & Functions
* Funding Structure
* Venture Capital
* Innovation Ecosystem
* KORIL-RDF
* Cases
Introduction
In the early 1990s, the Israel government created a technological business incubator program to leverage the strength of approximately 750,000 scientists, engineers, and physicians who had just arrived from former USSR. Israel’s Office of the Chief Scientist (OCS), a division of the industry, Trade and labor Minister of Israel, started six “incubators” designed to foster seed and early stage technology development through entrepreneurship. Today there are 24 such incubators located throughout Israel, and 65 percent of the projects are science-related research and development.
Present Condition & Functions
Present Condition
Breakdown of project fields of activity
(Chart 1. Allocation of industries in business incubation)
According to the OCS, the two biggest sectors attracting Israeli incubators are Medical device and Biotechnology taking up 42% of the total.
Incubators in Israel were privatized in 2002, and then the Israel government established franchise system to license the incubators to experienced venture management groups from the private sector who add significant value to the overall operation both commercially and technologically. Since then, with the franchise model, Israel has been able to refine the repayment mechanism so that it could start new incubators focused on specific high tech priority areas such as biotechnology.
Venture experts in Israel say that there are 4 significant factors make Israel incubators successful
Entrepreneurial Culture
Entrepreneurial Culture
Strong
VC
Industry
Strong
VC
Industry
Successful Israel
Incubators
Successful Israel
Incubators
Model’s
Dynamic
Nature
Model’s
Dynamic
Nature
Gov.’s Financial Commitment
Gov.’s
Table of Contents
* Introduction
* Present Condition & Functions
* Funding Structure
* Venture Capital
* Innovation Ecosystem
* KORIL-RDF
* Cases
Introduction
In the early 1990s, the Israel government created a technological business incubator program to leverage the strength of approximately 750,000 scientists, engineers, and physicians who had just arrived from former USSR. Israel’s Office of the Chief Scientist (OCS), a division of the industry, Trade and labor Minister of Israel, started six “incubators” designed to foster seed and early stage technology development through entrepreneurship. Today there are 24 such incubators located throughout Israel, and 65 percent of the projects are science-related research and development.
Present Condition & Functions
Present Condition
Breakdown of project fields of activity
(Chart 1. Allocation of industries in business incubation)
According to the OCS, the two biggest sectors attracting Israeli incubators are Medical device and Biotechnology taking up 42% of the total.
Incubators in Israel were privatized in 2002, and then the Israel government established franchise system to license the incubators to experienced venture management groups from the private sector who add significant value to the overall operation both commercially and technologically. Since then, with the franchise model, Israel has been able to refine the repayment mechanism so that it could start new incubators focused on specific high tech priority areas such as biotechnology.
Venture experts in Israel say that there are 4 significant factors make Israel incubators successful
Entrepreneurial Culture
Entrepreneurial Culture
Strong
VC
Industry
Strong
VC
Industry
Successful Israel
Incubators
Successful Israel
Incubators
Model’s
Dynamic
Nature
Model’s
Dynamic
Nature
Gov.’s Financial Commitment
Gov.’s