Dr Yehoshua Shuki Gleitman CEO Shrem Fudim Kelner

Dr. Yehoshua (Shuki) Gleitman CEO, Shrem Fudim Kelner Technologies, Managing Partner, Platinum Neurone Ventures (PNV) and Korea Global IT Fund (KGIF)

• Former Director General & Chief Scientist, Israel Ministry of Industry & Trade • Former CEO, Ampal-American Israel Corporation • Former Head, Israel Ministry of Defense: Laser Branch • Chairman, BIRD (US - Israel Industrial R&D Foundation) • Chairman, SIIRDF (Singapore – Israel) • Chairman, CIIRDF (Canada - Israel) • Joint Chairman, US Israel Science and Technology Commission • Chairman, Taiwan Israel Economic Committee • Honorary Consul General, Republic of Singapore to Israel

An Overview of the Israeli Approach for Encouragement of Industrial R&D Presented by Dr. Shuki Gleitman April 2004

Government Support Option Basic R&D RISK Applied academic research MAGNET Nofar Magneton European Long Range R&D Tnufa FP INCUBATOR S Competitive R&D Seed Fund Internationa l programs Market proximity

Israeli Approach • VATAT – Major Support Program For The Universities • National Council of High Education • National Academy Of Science • Science Ministry • OCS – Office Of The Chief Scientist • National Boards • Agriculture, Health - Ministries

O. C. S. Goals and Targets: • • Economic growth Enhancing Israel’s attractiveness for investments Targets: • • To enhance Israeli industries competitive edge To broaden Israel’s technological infrastructure To encourage international cooperation in R&D To foster entrepreneurship

Activities of the O. C. S. Chief Scientist Activities in Israel International Activities R&D Fund Bi-National Funds Magnet Seed Fund U. S-Israel Science & Technology Commission European Union Programs FP-6 Technological Incubators EUREKA Tenufa BI-National Agreements US$ 300 M 60 M 10 M 30 M Magneton (Mini. Magnet) Nofar US$ 40 M

OCS Programs National Pre-Seed Technological Incubators Magnet Tnufa Nofar International Generic R&D Competitive R&D Cooperation R&D Magneton Industrial R&D Fund ==== Seed Fund Eureka ISERD (Europe FP) Bi-national Funds Bi-national Agreements Matimop

Government Support Option Basic R&D RISK Applied academic research MAGNET Nofar Magneton European Long Range R&D Tnufa FP INCUBATOR S Competitive R&D Seed Fund Internationa l programs Market proximity

R&D Fund • Supports industrial competitive R&D projects • Grants are on a sliding scale from 20%-50% of R&D budget • Royalty payment is 3%-5% of future product sales • Budget: approximately $300 M/yr • Supports over 1000 projects/yr from more than 500 companies

Magnet- generic, pre competitive research • Supports the formation of consortia comprised of industrial firms and academic institutions in order to jointly develop generic, pre competitive technologies • Grants are up to 66% of the approved budget • No royalty payments • Budget: approximately $60 M/yr

Technological Incubators • Provides a framework and support for nascent companies to develop their innovative technological ideas and form new business ventures that can attract private investors • The program is open to private investors to become owners of the incubators and to invest in the nascent companies at an earlier stage, thus enabling a greater return on investment • Grants are up to 85% of the approved expenses • Budget: approximately $30 M/yr

Int’l Corporation International Cooperation in R&D Forms of Cooperation • Bi-National Funds • Bi-National Support Agreements • Other Forms of Cooperation

Int’l Corporation Bi-National Funds BIRDF-with U. S. A. SII-RD-with Singapore CIIRDF - with Canada BRITECH–with the UK KORIL-RDF - With S. Korea

Dr. Yehoshua (Shuki) Gleitman CEO, Shrem Fudim Kelner Technologies, Managing Partner, Platinum Neurone Ventures (PNV) and Korea Global IT Fund (KGIF)