Industrial R&D as a Growth Engine

Dr. Eli Opper - Chief Scientist Head of Innovation and Industrial R&D AdministrationMinistry of Industry, Trade and Labor

The Herzliya Conference, 3rd February 2009

Some Facts About Our World

Some Facts About Our World

Population: 6.6 billion

Forecast for 2050: 9.4 billion people

900 million people are hungry

33 million people are infected with HIV

1.1 billion people do not have access to clean water

5.2 billion people do not have access to internet

3 billion are not using cell phones

Barrel of oil $40 → $147 →$40

Population: 6.6 billion

Forecast for 2050: 9.4 billion people

900 million people are hungry

33 million people are infected with HIV

1.1 billion people do not have access to clean water

5.2 billion people do not have access to internet

3 billion are not using cell phones

Barrel of oil $40 → $147 →$40

And nowwhat?

And now what?

“Heavier-than-air flying machines are impossible" 

Lord Kelvin, 1895

“640 K Ought to be enough for anybody "

Bill Gates, 1981

Charles Darwin

“It’s not the strongest of the

species that survives, nor the

most intelligent; it is the one

that is most adaptable to

change”

Charles Darwin

Expenditure on Civilian R&D as a percent of theGDP in Israel and in OECD Countries

4.6

3.63.23.0

2.72.42.4 2.32.2 2.12.02.01.91.81.61.6 1.6

1.4 1.41.31.11.0 0.90.8 0.70.7

0

1

2

3

4

5

Isra

el

Isra

el

Sweden

Finla

nd

Japan

Switzer

land

Korea

Germ

any

Icel

andUSA

Denm

ark

France

Belgiu

m

Nether

lands

Austria UK

Norway

Canad

a

Irela

nd

Austra

lia

Czech

Rep

ublic

New Z

elan

dIta

ly

Spain

Portugal

Greec

e

Slova

k Rep

ublic

If you lie on the ground, you cannot fall…

International Activities

Academia

Industry

Preferred

Sectors

BUDGETBUDGET

Quality of

Service to the

Customer

Strategy:

Activities of the O.C.S.Activities of the O.C.S.

MagnetMagneton, Nofar

MagnetMagneton, Nofar

R&D FundR&D Fund

TnufaTnufa

TechnologicalIncubators

TechnologicalIncubators

R&D Centers in UniversitiesR&D Centers

in Universities

Support of Research Institutes

Support of Research Institutes

Support ofTraditional Industry

Support ofTraditional Industry Seed FundSeed Fund Bi-National

AgreementsBi-NationalAgreements

EU R&D ProgramFP-7

EU R&D ProgramFP-7

Global Enterprise R&DCooperation FrameworkGlobal Enterprise R&D

Cooperation Framework

US-Israel Science& Technology Commission

US-Israel Science& Technology Commission

Bi-National FundsBi-National Funds

EurekaEureka

MatimopMatimop

Chief Scientist

Dr. Eli Opper

Chief Scientist

Dr. Eli OpperActivities in Israel

International Activities

Evaluating

OCS 2008 Some Figures

No. Of No. Of ApplicationsApplications:

~2000 Projects

Requested Requested Budget:Budget:

~6.5 Billion NIS

Total Grants:Total Grants: ~1.65 Billion NIS

OCS Annual Budgets)Billion NIS( OCS Annual Budgets )Billion NIS(

1.35 1.42 1.43 1.65?

3.00

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

RequestedBudget 2009

20092008200720062005

Targeted Formation for R&D Case Study: Traditional Industry as a

preferred sector

• 2006 – 2008: M 180 NIS in 200 projects • Strategic consultation• Guidance and evaluation services

Encouraging Innovation While Embracing Tradition

source: The Economist

Encouraging Innovation While Embracing Tradition

source: The Economist

Preferred Sector: NanotechnologyPreferred Sector: Nanotechnology

6 R&D Centers )Telem( $300M/5 Years

NOFAR Program Infrastructure )Telem(

Global Network for Transfer of Knowledge

OECDOECD

International Cooperation

International Cooperation

Foundations:

BIRDF-with U.S.A.

USISTC/F

SIIRD-with Singapore

CIIRDF - with Canada

KORIL-RDF - With S. Korea

BRITECH–with the UK

International Cooperation

Maryland, Victoria, Ontario

France

Belgium

China

Finland

Germany Holland

ItalyIndiaTaiwan

Hungary

Sweden

Portugal

TurkeyBrazi

lArgentina

Greece Denmark

Bi-National Support Agreements:

Uruguay

Total Figures for 2006-2008:

International CooperationInternational Cooperation

source: OCS Data

$M210 in 520 Projects$M210 in 520 Projects

Small Enterprises – 520 Projects in R&D Fund

Incubators – 100 projectsMAGNET - 13 ConsortiaMagneton – 24 ProjectsNofar – 14 ProjectsKatamon – 3 ProjectsNataf – 9 Projects

Small Enterprises – 520 Projects in R&D Fund

Incubators – 100 projectsMAGNET - 13 ConsortiaMagneton – 24 ProjectsNofar – 14 ProjectsKatamon – 3 ProjectsNataf – 9 Projects

Government

Academia

Industry

Some Dilemmas, January 2009Some Dilemmas, January 2009

Encouragement of Researchers What will stay in Israel?

Should the OCS declare preferred sectors?

TTO’s objective What will stay in Israel?

Big Companies Small Companies? And what about the ‘Tsunami’?

Encouragement of Researchers What will stay in Israel?

Should the OCS declare preferred sectors?

TTO’s objective What will stay in Israel?

Big Companies Small Companies? And what about the ‘Tsunami’?

There is always room also for the small ones

Before…Before…

There is always room also for the small ones

Excellence is a Excellence is a Key Success Key Success

FactorFactor

Excellence is a Excellence is a Key Success Key Success

FactorFactor

Excellence is a Excellence is a Key Success FactorKey Success FactorExcellence is a Excellence is a

Key Success FactorKey Success Factor