G/SCM/N/343/ISR  
 
23 July 2020  
(20-5063) Page: 1/41 
Committee on Subsidies and Countervailing Measures  Original: English  
 
SUBSIDIES  
NEW AND FULL NOTIFIC ATION PURSUANT TO AR TICLE XVI:1  OF THE  
GATT 1994 AND ARTICL E 25 OF THE AGREEMEN T ON  
SUBSIDIES AND COUNTE RVAILING MEASURES  
ISRAEL 
The following communication, dated 15 July, is being circulated at the request of the delegation of 
Israel.  
_______________  
 
  G/SCM/N/343/ISR  
 
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  INDEX  
 
INTRODUCTION  ................................ ................................ ................................ ..............  4 
RESEARCH AND DEVELOP MENT  ................................ ................................ .......................  4 
The Innova tion Authority  ................................ ................................ ................................ .. 4 
1  THE INNOVATION AUTH ORITY – THE START -UP DIVISION  ................................ .........  4 
Tnufa program  ................................ ................................ ................................ ................  4 
Incubators program  ................................ ................................ ................................ .........  5 
Early stage prog ram ................................ ................................ ................................ .........  6 
Renewable Energy  ................................ ................................ ................................ ...........  8 
2  THE INNOVATION AUTH ORITY – GROWTH DIVIS ION ................................ .................  9 
Research and Development Fund  ................................ ................................ .......................  9 
Generic R&D Incentive Program for Large Companies  ................................ ..........................  10 
Alternative Fuels for Transportation  ................................ ................................ ..................  11 
Space Technology  ................................ ................................ ................................ ..........  12 
Large Israeli Companies in Israel's Periphery  ................................ ................................ ..... 13 
3  THE INNOVATION AUTH ORITY – TECHNOLOGICA L INFRASTRUCTURE DIV ISION  ..... 14 
Generic Technologies R&D Consortiums - MAGNET  ................................ ..............................  14 
Technology Transfer - MAGNETON  ................................ ................................ ....................  15 
Promoting Applied Research in Academia - NOFAR  ................................ ..............................  16 
Promoting Applied Research in Academia - KAMIN  ................................ ..............................  17 
4  THE INNOVATION AUTHORIT Y – INTERNATIONAL CO LLABORATION DIVISION  ....... 18 
Bilateral programs for parallel support  ................................ ................................ ..............  19 
R&D Collaboration with Multinational Corporations Program (MNC)  ................................ ........  20 
Bi-national Funds  ................................ ................................ ................................ ...........  21 
5  THE INNOVATION AUTH ORITY – ADVANCED MAN UFACTURING   
DIVISION  ................................ ................................ ................................ ......................  22 
Manufacturing -Oriented Industry  ................................ ................................ ......................  22 
R&D Preparatory Incentive Program for Companies in the Low -Technology Industry  ................  23 
6  THE INNOVATION AUTH ORITY – SOCIAL CHALL ENGES DIVISION  ............................  24 
Support in R&D of Assistiv e Technology for the Disabled  ................................ ......................  24 
Public Sector Challenges  ................................ ................................ ................................ . 25 
7  AID T O SMALL AND MEDIUM -SIZED COMPANIES BY TH E SMALL  
AND MEDIUM BUSINESS AGENCY (SMBA)  ................................ ................................ ..... 26 
Design Based Product Programme by the SMBA  ................................ ................................ . 27 
IT Systems implementation for SMEs in Manufacturing Industry  ................................ ...........  28 
IT Systems implementation for SMEs in commerce and Services Sector  
which are located in the North  ................................ ................................ .........................  29 
IT Systems implementation for SMEs in Food Manufacturing (Meet and  
Fish and Gluten free)  ................................ ................................ ................................ ...... 29 
8  FOREIGN TRADE ADMIN ISTRATION  ................................ ................................ ..........  30 
Smart Money Programme  ................................ ................................ ................................  30 G/SCM/N/343/ISR  
 
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  Shalav – A gateway for International Marketing Programme  ................................ .................  31 
Infrastructure Consortium  ................................ ................................ ...............................  32 
International Projects Fund  ................................ ................................ .............................  33 
9  SUPPORT FOR EMPLOYM ENT AND TRAINING  ................................ ............................  33 
Training Courses for Adults  ................................ ................................ .............................  33 
On the Job Training  ................................ ................................ ................................ ........  34 
Factory Study Classroom  ................................ ................................ ................................  35 
Apprenticeship Training Program - "Starter" ................................ ................................ ....... 36 
Vouchers programme  ................................ ................................ ................................ ..... 36 
The Authority for Investments and Development of the Industry and  
Economy (formerly called the Israel investment Center) at the Ministry of  
Economy and Industry  ................................ ................................ ................................ .... 37 
Investment Incentives in the Law for the Encouragement of Capital Investment  ......................  38 
Industrial Gas Installation System programme  ................................ ................................ ... 39 
10  OTHER FORMS OF SUBS IDIES  ................................ ................................ .................  40 
Cost of Land Development  ................................ ................................ ..............................  40 
Eilat Free Trade Zone  ................................ ................................ ................................ ..... 40 
Free Port Zone  ................................ ................................ ................................ ..............  41 
 G/SCM/N/343/ISR  
 
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  INTRODUCTION  
This notification relates to measures which are currently in force and provides, as far as possible, 
statistical information at least until the end of 2019. This notification combines Israel's new and full 
notifications of the years 2017, 2018 and 2019.  
A considerable effort has been undertaken by the Government of the St ate of Israel to submit 
comprehensive notifications in accordance with the requirements of the Agreement on Subsidies and 
Countervailing Measures. The notification follows, as far as possible, all the elements required by 
Article 25 of the Subsidies Agreem ent and by the subsidies questionnaire.  
In accordance with Article 25.7 of the Subsidies Agreement, the fact that a measure has been 
notified, does not prejudge either its legal status under GATT 1994 or the Subsidies Agreement, nor 
does it prejudge its ef fects under the Agreement or the nature of the measure itself. Furthermore, 
this does not come to imply in any way, that any of the measures notified, wholly or partly, amounts 
to a specific subsidy.  
RESEARCH AND DEVELOP MENT  
The Innovation Authority  
The In novation Authority is an independent agency, aimed at supporting the Israeli innovation 
ecosystem by providing a variety of tools and funding platforms. The Authority (formerly known as 
'The Office of the Chief Scientist at the Ministry of Economy and Indu stry') was founded in 2015, 
when amendments to the Law for the Encouragement of Industrial Research and Development, 
5744-1984 were made. The amendments formed the legal basis for the establishment of the new 
'Innovation Authority'.  
The Authority is divide d into six divisions, each responsible for a different target audience:  
1. Start-up Division  
2. Growth Division  
3. Technological Infrastructure Division  
4. International Collaboration Division  
5. Advanced Manufacturing Division  
6. Societal Challenges Divis ion 
Legal Basis  
The legal basis for the establishment of the Authority is the Law for the Encouragement of Industrial 
Research and Development, 5744 -1984.  
1  THE INNOVATION AUTHO RITY – THE START -UP DIVISION  
The Start -up Division offers unique tools to support the early development stages of technological 
initiatives. These tools assist entrepreneurs and start -up companies in developing their innovative 
technological concepts at the pre -seed or initial R&D stages, transform their ideas into reality and 
reach significant fundable milestones.  
Tnufa program  
The Tnufa incentive program is designed for entrepreneurs who are interested in formulating and 
validating an innovative technological concept and in reaching the R&D stage, where they can raise 
funding f or further development and commercialization.  G/SCM/N/343/ISR  
 
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  1. The Authority Responsible for the Subsidy  
The Innovation Authority . 
2. Legal Basis  
Law for the Encouragement of Industrial Research and Development, 5744 -1984. 
3. Policy Objective and/or Purpose  
The program supports entrepreneurs reaching proof of concept and business feasibility of early stage 
projects.  
4. Form of the subsidy  
Entrepreneurs and new start -up companies can receive a conditional grant of up to NIS 200,000 
over a period of two years: NIS 100,000 awarded each  year (85% of the approved budget).  
The funds are given for building an initial prototype, protecting intellectual property and business 
development, including, degradable components, contracting with sub -contractors, consultants, 
patent attorneys and exhi bition expenses (not intended for salaries and overhead expenses).  
5. To whom the subsidy is provided  
The support is given to private entrepreneurs and new start -up companies.  
6. Duration  
Ongoing.  
7. Budget/expenditure  
Actual Annual Disbursement (in million NIS)  
2017 15.4 
2018  12.6 
2019  11.9 
8. Trade Effects  
The products or processes financed by the programme are innovative and cannot therefore compete 
with existing products in the market. Normally, further work is necessary for the results of an R&D 
project to lead to a commercially exploitable process or product. Therefore, the programme has no 
direct impact on trade.  
Incubators program  
This incentive program is designed for entrepreneurs who are interested in establishing a start -up 
company based on an innovat ive technological concept. A technological incubator is a center for 
entrepreneurship intended to invest in new start -up companies and to provide them with 
administrative, technological and business support. The incubator offers a supportive framework for 
the establishment of a company as well as development of a concept into a commercial product. 
Currently there are 18 technological incubators and 1 designated biotechnological incubator, which 
are privately owned by seasoned and experienced groups, such as  venture capital funds, 
multinational corporations, private investors etc. The incubators are selected through competitive 
processes for a license period of eight years and are geographically spread across Israel. The list of 
incubators operating in Israel  is available on the Innovation Authority website.  
1. The Authority Responsible for the Subsidy  
The Innovation Authority . G/SCM/N/343/ISR  
 
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  2. Legal Basis  
Law for the Encouragement of Industrial Research and Development, 5744 -1984. 
3. Policy Objective and/or Purpose  
Supporting entrepreneurs with innovative technological concepts at the initial stage of R&D in 
establishing start -up companies and helping them reach a significant fundable milestone.  
4. Form of the subsidy  
The conditional grant provided as part of this incen tive program is 85% of the approved budget and 
up to NIS 3 million for a period of up to two years, or up to 85% and NIS 5 million for a period of 
up to three years. Companies operating in development areas are eligible for additional funds.  
The conditiona l grant provided as part of the designated Biotechnological Incubator is 85% of the 
approved budget, up to NIS 8.1 million for a period of up to three years.  
Supplementary financing of 15% of the approved budget is invested by the incubator. No financial 
investment is required by the entrepreneurs.  
Comprehensive assistance is provided by the incubator, including physical space, technological 
infrastructure and business guidance, as well as access to partners, additional investors and potential 
customers, le gal advisory and administrative services.  
5. To Whom the Subsidy is Provided  
The support is provided to private entrepreneurs, new Israeli start -up companies  and research 
institutions interested in commercializing technologies based upon groundbreaking studie s into 
start-up companies.  
6. Duration  
Ongoing . 
7. Budget/expenditure  
Actual Annual Disbursement (in million NIS)  
2017  156.9  
2018  162.7  
2019  133.6  
8. Trade Effects  
The products or processes financed by the programme are innovative and cannot therefore compete 
with existing products. Normally, further work is necessary for the results of an R&D project to lead 
to a commercially exploitable process or product. Therefore, the programme has no direct impact 
on trade.  
Early stage program  
The Early Stage Ince ntive Program is designed for start -up companies seeking to develop and 
promote an innovative technological project, as well as penetrate the market by raising investments 
from the private sector. The incentive program offers three sub -programs: standard p rogram, 
minorities program, and ultra -orthodox program. Approval by the Authority serves as a significant 
springboard for companies in raising investments from the private sector.  G/SCM/N/343/ISR  
 
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  In 2019, the Early Stage Program was moved from the Start -up division to the  Growth Division.  
1. The Authority Responsible for the Subsidy  
The Innovation Authority . 
2. Legal Basis  
Law for the Encouragement of Industrial Research and Development, 5744 -1984. 
3. Policy Objective and/or Purpose  
To provide an incentive for private investments in early stage companies in product development 
and initial market penetration.  
4. Form of the subsidy  
The conditional grant provided is 50%/30% of the approved budget, up to NIS 10 million each year. 
Companies operating in development areas are e ligible for additional 10% or 25% conditional grant.  
Minority/Ultra -Orthodox entrepreneurs can apply for preferred incentives in the first two years as 
follows:  
• 1st Year - The total budget is up to NIS 2.5 million and the conditional grant provided 
is 75% of the approved budget.  
• 2nd Year - The total budget is up to NIS 4.5 million and the conditional grant provided 
is 70% of the approved budget.  
A company receiving the authority's approval for its first year in the program will be given the 
opportunity to r aise the supplementary funding needed for the project, up to six months after the 
date of approval.  
5. To Whom the Subsidy is Provided  
Israeli start -up companies from all industrial sectors, which raised up to USD 10 million and with 
revenues of up to USD 1 m illion in the previous year, that are interested in developing or upgrading 
innovative products and penetrate their target markets.  
The incentive program offers preferential terms for companies held by Minority/Ultra -Orthodox 
entrepreneurs.  
6. Duration  
Ongoin g. 
7. Budget/expenditure  
Actual Annual Disbursement (in million NIS)  
2017  253.4  
2018  249.2  
2019  315.0  
8. Trade Effects  
The products or processes financed by the programme are innovative and cannot therefore compete 
with existing products. Normally, further work is necessary for the results of an R&D project to lead 
to a commercially exploitable process or product. Therefore, the programme has no direct impact 
on trade.  G/SCM/N/343/ISR  
 
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  Renewable Energy  
The Renewable Energy Technology Center supports technological ven tures and R&D projects starting 
from the stages of applied academic research and early stage entrepreneurship. The center enables 
testing and trials for products undergoing development and demonstration. The Center is operated 
by the private sector, compos ed of strategic investors and an academic institute. The Center's 
activities are carried out in development areas in the southern part of the country (Eilat region).  
1. The Authority Responsible for the Subsidy  
The Innovation Authority . 
2. Legal Basis  
Law for th e Encouragement of Industrial Research and Development, 5744 -1984. 
3. Policy Objective and/or Purpose  
To assist companies and entrepreneurs that are developing, or interested in developing, a product 
integrating an innovative technology that has economic potential in the fields of renewable energy 
and energy efficiency. In addition, the program is designed  for teams that can carry out the proposed 
R&D by themselves, on the technological and the managerial levels. This support is conditional upon 
the fact that the project could contribute to the development of the Eilot region.  
4. Form of the subsidy  
The partic ipants of all the sub -programs receive professional and technical support from the Center's 
staff for the completion of the project. The financial support depends on the sub -program in which 
the operation is carried out:  
• Primary sub -program: Financial supp ort of 66% of the approved R&D expenditures for 
an activity period of up to two years. In exceptional cases a one -year extension of the 
period will be approved without changes in the scope of the financial support.  
• Advanced sub -program: Financial support o f 60% or 85% of the approved R&D 
expenditures by the Authority, and supplementary financing of up to 100% of the 
approved R&D expenditures by the Center's licensee for activity period of up to two 
years.  
Financial support of 60% of R&D expenditures is avai lable for young companies at the beginning of 
their activities, even if they have been supported in the past by other incentive programs of the 
Authority or as part of any other program.  
Financial support of 85% of R&D expenditures is available for project s that have not previously 
received government support as part of one of the Authority's incentive programs, except for the 
Primary sub -program of the Renewable Energy Technology Center.  
The approved budget for a project is up to NIS 2,500,000. In exceptio nal cases, a one -year extension 
of the activity period will be approved without changes in the scope of the financial support.  
The entrepreneur or company receiving the benefits as part of this incentive program will repay the 
received funding to the Autho rity by the payment of royalties from sales, if the project succeeds in 
reaching the commercialization stage and the company generates revenues.  
• Testing areas sub -program: Financial support of 50% of the approved R&D expenditures 
for activity period of u p to two years.  
5. To Whom the Subsidy is Provided  
Companies and entrepreneurs who wish to carry out projects that require technological R&D in the 
renewable energy and energy efficiency fields.  G/SCM/N/343/ISR  
 
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  The Renewable Energy Technology Center supports projects in rele vant technological fields, such as 
solar energy, wind energy, geothermal energy, alternative fuels, energy efficiency, smart grid, 
energy storage and more.  
The program is available for early stage companies and entrepreneurs interested in developing 
techno logical projects in the renewable energy field, for researchers wishing to carry out applied 
research in these areas, and for companies that want to conduct experiments in the testing areas 
operated by the Center.  
The assistance is carried out via three su b-programs:  
1. Primary sub -program: Funding and support of applied R&D activities, via cooperation 
between academia and industry ; 
2. Advanced sub -program: Funding and support of technological projects of young 
companies in the pre -seed and seed stages ; and  
3. Testing areas sub -program: Funding and support of demonstrations and experiments . 
6. Duration  
Ongoing . 
7. Budget/expenditure  
Actual Annual Disbursement (in million NIS)  
2017  0 
2018  7.9 
2019  4.2 
8. Trade Effects  
The products or processes financed by the programme are innovative and cannot therefore compete 
with existing products. Normally, further work is necessary for the results of an R&D project to lead 
to a commercially exploitable process or product. Therefor e, the programme has no direct impact 
on trade.  
2  THE INNOVATION AUTHO RITY – GROWTH DIVISI ON 
The Growth Division operates a wide range of incentive programs that promote technological 
innovation of mature and growth companies. This division contributes to th e promotion and 
preservation of competitiveness and technological leadership of companies, as well as the increase 
of their growth rates and potential.  
Research and Development Fund  
This is the main incentive program designed for industrial R&D support for  the development of 
competitive products and innovative processes. The R&D Fund, which offers the greatest financial 
incentives for R&D activities by the Israeli government, provides commercial companies in all areas 
with support for the development proces ses of new products or for the upgrade of existing 
technology. The support is offered to all businesses in Israel and all their branches, at all stages of 
R&D. 
1. The Authority Responsible for the Subsidy  
The Innovation Authority  
2. Legal Basis  
Law for the Encouragement of Industrial Research and Development, 5744 -1984. G/SCM/N/343/ISR  
 
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  3. Policy Objective and/or Purpose  
The R&D Fund encourages technological innovation in order to strengthen and promote the Israeli 
economy.  
4. Form of the subsidy  
A conditional grant of 20% to 50% of the approved R&D expenditures.  
Companies operating in development areas are eligible for additional support of 10 -25%.  
5. To Whom the Subsidy is Provided  
The support is offered to all businesses in Israel and all their branches, at all stages of R&D.  
6. Durat ion 
Ongoing . 
7. Budget/expenditure  
Actual Annual Disbursement (in million NIS)  
2017  540.7  
2018  427.8  
2019  317.8  
8. Trade Effects  
The products or processes financed by the programme are innovative and cannot therefore compete 
with existing products. Normally, further work is necessary for the results of an R&D project to lead 
to a commercially exploitable process or product. Therefore, the programme has no direct impact 
on trade.  
Generic R&D Incentive Program for Large Companies  
This incentive program  allows large companies to focus on long -term creation of new knowledge and 
technological infrastructure, used for the development or production of future innovative products.  
1. The Authority Responsible for the Subsidy  
The Innovation Authority . 
2. Legal Basis  
Law for the Encouragement of Industrial Research and Development, 5744 -1984. 
3. Policy objective and/or purpose  
To encourage and support long -term R&D of large companies, which invest in the development of 
infrastructural knowledge that can be implemented in a series of products over a long -time frame. 
R&D projects submitted to this program should include a long -term R&D plan or collaboration with 
another Israeli company.  
4. Form of the subsidy  
A grant of 20% -50% of the approved R&D expenditures fo r long -term R&D plans or for an R&D 
project executed in cooperation with another Israeli company.  
Companies operating in development areas are eligible for additional support of 10%.  G/SCM/N/343/ISR  
 
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  5. To Whom the Subsidy is Provided  
Large Israeli companies that employ at le ast 200 employees in R&D or with a R&D budget in Israel 
of at least USD 20 million. In addition, the company's average yearly sales (including subsidiaries) 
must exceed USD 70 million for 3 years; or its parent company's total revenue (with a direct or 
indirect holding of at least 80%) exceeds USD 2.5 billion.  
6. Duration  
Ongoing . 
7. Budget/expenditure  
Actual Annual Disbursement (in million NIS)  
2017  52.9 
2018  84.7 
2019  106.1  
8. Trade Effects  
The products or processes financed by the programme are innovative and cannot therefore compete 
with existing products. Normally, further work is necessary for the results of an R&D project to lead 
to a commercially exploitable process or product. Therefore, the programme has no direct impact 
on trade.  
Alternative Fuels for Transportation  
The Israel Innovation Authority is participating in the Israeli national plan to reduce global 
dependence on the use of petroleum for transportation and to address the real need for the 
development of economically effic ient and cleaner alternatives than oil and its products. The 
incentive program offers favourable conditions to investors, as well as assistance to technology 
companies in order to advance the field of petroleum substitutes in Israel and to expand the pool of 
funding sources available in the field for Israeli companies.  
1. The Authority Responsible for the Subsidy  
The Innovation Authority . 
2. Legal Basis  
Law for the Encouragement of Industrial Research and Development, 5744 -1984. 
3. Policy objective and/or purpose  
To encourage Israeli and foreign investors to invest in Israeli companies engaged in the development 
and implementation of technologies in the field of alternative fuels for transportation, such as electric 
vehicle batteries, fuel cells, biofuels, synthetic fuels and more. The overall goals of this program are 
to reduce global dependence on petroleum as an energy source for transportation and to promote 
the development of Israeli industry in this field.  
4. Form of the subsidy  
• Companies supported by this incentiv e program receive:  
Financial assistance in the form of a loan, matching up to 50% of the total amount invested by 
private investors. The loan is from NIS 750,000 (against NIS 1.5 million invested by private 
investors) up to NIS 12 million (against NIS 24 million invested by private investors). The maximum 
aggregate loan amount is NIS 30 million (against NIS 60 million invested by private investors), 
which can be obtained by the company during its participation in the incentive program (until 2020).  G/SCM/N/343/ISR  
 
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  The com panies are obliged to repay the received funding via royalty payments, if the investors did 
not exercise the loan repayment option in exchange for additional shares in the company, and if the 
project results in sales.  
• The investors participating in this in centive program receive:  
An option allowing them to hold additional shares in the company under the conditions of the original 
investment, in exchange for the repayment of the full loan amount to the Authority instead of the 
company.  
5. To whom the subsidy is  provided  
Israeli technology companies engaged in the field of oil substitutes for transportation and Israeli or 
foreign investors who wish to invest in Israeli companies engaged in the field of oil substitutes for 
transportation.  
6. Duration  
Ceased activity in 2018 . 
7. Budget/expenditure  
Actual Annual Disbursement (in million NIS)  
2017  38.5 
2018  2.1 
8. Trade Effects  
The products or processes financed by the programme are innovative and cannot therefore compete 
with existing products. Normally, further work is necessary for the results of an R&D project to lead 
to a commercially exploitable process or product. Therefore, the programme has no direct impact 
on trade.  
Space Technology  
This incentive program is a joint initiative of the Innovation Authority and the Israel Space Agency 
of the Ministry of Science, Technology and Space.  
1. The Authority Responsible for the Subsidy  
The Innovation Authority . 
2. Legal Basis  
Law for the Encouragement of Industrial Research and Development, 5744 -1984. 
3. Policy objective and/or purpo se 
To encourage R&D in the fields of space technology, while strengthening knowledge and 
technological development capacity of the Israeli industry, to reduce the knowledge gap between 
Israel and the global market and to improve the competitiveness of the Israeli industry, amid the 
existing challenges, such as significant technological risk, high development costs, limited production 
quantities and expensive systems.  
4. Form of the subsidy  
Conditional grant of up to 85% of the approved R&D expenditures for a p eriod of 36 months.  G/SCM/N/343/ISR  
 
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  5. To whom the subsidy is provided  
Companies that develop products in the field of space technology intended for installation in satellites 
or ground stations for management of satellite operations.  
Companies that develop products in the field of space technology intended for reception or 
transmission of data from satellites.  
Companies that develop equipment for calibration and testing of products in the field of space 
technology intended for installation on -board satellites, or related to the operation of the satellites, 
including installation of different versions of the satellites.  
6. Duration  
Ongoing . 
7. Budget/expenditure  
Actual Annual Disbursement (in million NIS)  
2017  19.2 
2018  16.9 
2019  20.0 
8. Trade Effects  
The p roducts or processes financed by the programme are innovative and cannot therefore compete 
with existing products. Normally, further work is necessary for the results of an R&D project to lead 
to a commercially exploitable process or product. Therefore, th e programme has no direct impact 
on trade.  
Large Israeli Companies in Israel's Periphery  
This incentive program is part of the R&D Fund. The R&D centers  located in outlying areas and 
development zones have an immense influence on the formation of independent economic activity.  
1. The Authority Responsible for the Subsidy  
The Innovation Authority  
2. Legal Basis  
Law for the Encouragement of Industrial Research an d Development, 5744 -1984. 
3. Policy objective and/or purpose  
To encourage large companies to establish R&D centers in Israel's periphery, while constantly 
striving to reduce the gap between these outlying areas and the country's center.  
4. Form of the subsidy  
A perennial approval of a conditional grant of 65% -75% of the approved R&D expenditures for an 
active R&D center in the periphery, for a period of two to three years.  
5. To whom the subsidy is provided  
Large Israeli companies with a total sales turnover from th eir activities in Israel of more than 
USD 100 million (in the year prior to submitting the application) that wish to set up a R&D center in 
Israel's periphery.  G/SCM/N/343/ISR  
 
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  The incentive program is suitable for companies stating that over 50% of the total products that  will 
be produced as part of the program are produced in Israel. Furthermore, the company's R&D center 
has to employ employees living in development areas, at a rate of not less than 40% of all employees 
in the first year of operations, 50% in the second y ear, and 60% in the third year.  
6. Duration  
Ongoing . 
7. Budget/expenditure  
Actual Annual Disbursement (in million NIS)  
2017  66.4 
2018  63.0 
2019  12.6 
8. Trade Effects  
The products or processes financed by the programme are innovative and cannot therefore compete 
with existing products. Normally, further work is necessary for the results of an R&D project to lead 
to a commercially exploitable process or product. Therefor e, the programme has no direct impact 
on trade.  
3  THE INNOVATION AUTHO RITY – TECHNOLOGICAL  INFRASTRUCTURE DIVI SION  
The Technological Infrastructure Division focuses on collaboration between industry and academia 
to produce advanced technologies and innovative products. The incentive programs offered by this 
division promote cooperation, exchange of knowledge and experience, and development of generic 
ground -breaking knowledge by an integrated group of researchers from academia and industry.  
Generic T echnologies R&D Consortiums - MAGNET  
The MAGNET incentive program (Generic Pre -Competitive Technological R&D) focuses on 
consortiums of industrial companies and research institutions that collaborate to develop innovative 
technologies. The consortiums enab le long -term R&D and create a supportive work environment. 
Collaboration with industry also strengthens the commercialization capabilities of research 
institutions and assists them in understanding market needs.  
The goal of the program: To assist in the de velopment of generic technologies in important fields in 
the global market, in which the Israeli industry has a competitive advantage. Since the program 
specializes in the development of infrastructural technology, it allows distribution of knowledge and 
cooperation between companies operating in the same field, which may be difficult to achieve 
otherwise.  
1. The Authority Responsible for the Subsidy  
The Innovation Authority . 
2. Legal Basis  
Law for the Encouragement of Industrial Research and Development, 5744 -1984. 
3. Form of the subsidy  
The amount of the grant provided through the consortium is up to 66% of the approved budget for 
an industrial company and 100% of the approved budget for a research institution (80% as a grant 
and 20% from the industrial companies i n the consortium).  
The operating period is three years.  G/SCM/N/343/ISR  
 
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  4. To whom the subsidy is provided  
Israeli manufacturing companies developing competitive products and interested in developing 
innovative technologies, which can be used as a basis to develop a new and advanced generation of 
products.  
Israeli academic research groups engaged in scientific or technological research, seeking to promote 
applied research as part of a consortium, as well as to collaborate with the industry and study the 
market needs.  
Foreign company as an observer or as full partner with no funding.  
5. Duration  
Ongoing . 
6. Budget/expenditure  
Actual Annual Disbursement (in million NIS)  
2017  185.6  
2018  171.4  
2019  130.2  
7. Trade Effects  
The products or processes financed by the programme are innovative and cannot therefore compete 
with existing products. Normally, further work is necessary for the results of an R&D project to lead 
to a commercially exploitable process or product. Therefore, the programme has no direct impact 
on trade.  
Technolo gy Transfer - MAGNETON  
This incentive program encourages the transfer of technological knowledge accumulated in the 
academia for the use of the industry, by creating collaborations between companies and academic 
research groups. These collaborations expose  industrial companies to the research achievements 
relevant to their activities and assist research groups in transforming academic developments into 
commercial applications.  
1. The Authority Responsible for the Subsidy  
The Innovation Authority . 
2. Legal Basis  
Law for the Encouragement of Industrial Research and Development, 5744 -1984. 
3. Policy objective and/or purpose  
Validation of laboratory results and transfer of the technology from research institutions to industrial 
corporations for the development of breakthrough products.  
4. Form of the subsidy  
An applied research grant of up to 66% of the approved budget, up to 24 months.  G/SCM/N/343/ISR  
 
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  5. To whom the subsidy is provided  
Israeli industrial companies seeking to incorporate new technologies developed in the academia and 
striving to develop a new product or to improve an existing product based on recent studies, relevant 
to their field of activity.  
Academic research groups from research institutes and institutes approved by the Technological 
Infrastructure Div ision, seeking to carry out innovative and original applied research in collaboration 
with an Israeli company interested in the relevant technology. The research should be focused on 
technological feasibility for the industry, and the applying research ins titute should be the sole owner 
of knowledge in the project.  
6. Duration  
Ongoing . 
7. Budget/expenditure  
Actual Annual Disbursement (in million NIS)  
2017  45.7 
2018  37.7 
2019  47.9 
8. Trade Effects  
The products or processes financed by the programme are innovative and cannot therefore compete 
with existing products. Normally, further work is necessary for the results of an R&D project to lead 
to a commercially exploitable process or product. Therefore, the programme has no direct impact 
on trade.  
Promotin g Applied Research in Academia - NOFAR  
The NOFAR incentive program provides support for applied research in academia, thus potentially 
increasing its economic contribution to the economy. This program focuses on technologically 
feasible ideas, which are no t mature enough for the support of the MAGNETON program, but require 
financing in the initial applied research stage at universities in order to match them with relevant 
industrial companies from that sector.  
1. The Authority Responsible for the Subsidy  
The Innovation Authority . 
2. Legal Basis  
Law for the Encouragement of Industrial Research and Development, 5744 -1984. 
3. Policy objective and/or purpose  
To bridge the gap between academic knowledge and industry needs. All the research activities 
carried out as part o f this program are in academic institutions, accompanied by the support of an 
industrial company that sees business potential in the achievements of the project. The main goal 
is to reach significant milestones by the end of the project, which will enable the industrial company 
to sign a technology commercialization agreement with the research institution. The research 
activities in the program will receive professional support by an industrial company or a relevant 
business entity (such as a venture capita l fund).  G/SCM/N/343/ISR  
 
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  4. Form of the subsidy  
The research institution supported by the NOFAR program is entitled to a grant of up to 90% of the 
approved budget with a maximum scope of NIS 550,000 for a period of 12 months, with an option 
to extend the support period up to 15 months.  
The supporting company serves as partner in professional guidance and in setting of research goals, 
as well as participates in the funding of 10% of the project cost.  
At the end of the research, the supporting company receives the first right  to negotiate a 
commercialization agreement with the research institution.  
NOFAR research conducted in collaboration with two different institutions is eligible for funding of up 
to NIS 700,000.  
5. To whom the subsidy is provided  
Academic research groups in I srael, operating as part of a higher education or research institution, 
seeking to carry out applied research, which is not mature enough to be supported by the industry 
or by the MAGNETON incentive program as explained broadly above. The research should i nclude a 
new and original idea that requires proof of concept, with preliminary basic research and results that 
are applicable to Israeli industry.  
6. Duration  
Ongoing . 
7. Budget/expenditure  
Actual Annual Disbursement (in million NIS)  
(Shared budget with KAMIN p rogram - see below)  
2017  47.8 
2018  56.5 
2019  65.3 
8. Trade Effects  
The products or processes financed by the programme are innovative and cannot therefore compete 
with existing products. Normally, further work is necessary for the results of an R&D project to lead 
to a commercially exploitable process or product. Therefore, the programme has no direct impact 
on trade.  
Promoting Applied Research in Academia - KAMIN  
The KAMIN incentive program serves as a bridge between basic and applied research and i s focused 
on the stage of transformation and realization of basic research into technologies with commercial 
application.  
1. The Authority Responsible for the Subsidy  
The Innovation Authority . 
2. Legal Basis  
Law for the Encouragement of Industrial Research and D evelopment, 5744 -1984. G/SCM/N/343/ISR  
 
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  3. Policy objective and/or purpose  
To encourage applied academic research that can attract the investment interests of business 
entities willing to cooperate with the research institution towards a commercialization agreement.  
4. Form of the subsidy  
Conditional grant of 85% -90% of the approved budget, up to a maximum amount of NIS  440,000 
per year. A study conducted in collaboration with two different institutes will be eligible for funding 
of up to NIS 660,000 with a maximum sum of NIS 40 0,000 for a single institution.  
The support is provided for a period of one or two years, with the possibility to extend this period in 
exceptional cases with a reduced grant of 66% of the approved budget.  
5. To whom the subsidy is provided  
Research groups fr om Israeli universities, colleges, research institutes and medical centers that seek 
to conduct applied research, building upon the basic research. The research must be innovative and 
original in terms of industrial application; its results should be appli cable to industries in Israel and 
potentially have high added value for the entire economy.  
6. Duration  
Ongoing . 
7. Budget/expenditure  
Actual Annual Disbursement (in million NIS)  
(Shared budget with NOFAR program)  
2017  47.8 
2018  56.5 
2019  65.3 
8. Trade Effects  
The products or processes financed by the programme are innovative and cannot therefore compete 
with existing products. Normally, further work is necessary for the results of an R&D project to lead 
to a commercially exploitable process or product. Therefore, the programme has no direct impact 
on trade.  
4  THE INNOVATION AUTHO RITY – INTERNATIONAL  COLLABORATION DIVIS ION 
The International Collaboration Division is responsible for creating bridges to new international 
markets, building platforms for cooperation in innovative R&D, and attracting strategic foreign 
stakeholders to Israel.  
The International Collaboration Division has three geographical desks: North America and Europe, 
Asia-Pacific, Emerging Markets, along with a Planning Unit. In addition , ISERD, the Israeli -European 
R&D Directorate, operates as the general Contact Point for the European R&D Framework Program 
in which Israel participates as an associated country (the current program being Horizon  2020).  
Support for international cooperatio n projects for Israeli entities with foreign peers is made possible 
through an array of bilateral cooperation agreements, bi -national funds, various agreements with 
strategic partners and institutions such as MNCs (Multi -National Corporations) or world -class 
hospitals , as well as through the EU Framework Programme for Research and Innovation.  
Together with its counterpart organizations abroad, the division coordinates calls for proposals for 
funding and assists in matching partners in Israel and abroad for joint R&D projects and other 
business ties.  G/SCM/N/343/ISR  
 
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  Bilateral programs for parallel support  
The bilateral programs for parallel support of industrial R&D constitute a platform for promotion of 
technological innovation among industrial and research entities. The Au thority operates these 
programs in collaboration with R&D and innovation funding bodies in leading countries, provinces 
and cities in Asia, North and South America, Europe, and Australia.  
1. The Authority Responsible for the Subsidy  
The Innovation Authority . 
2. Legal Basis  
Law for the Encouragement of Industrial Research and Development, 5744 -1984. 
3. Policy objective and/or purpose  
Initiation of bilateral or multilateral R&D joint projects, conducted simultaneously in Israel by local 
affiliates and abroad by designated partners.  
4. Form of the subsidy  
Assistance in finding a foreign partner.  
Conditional grants of up to 50% of the approved budget of a R&D project, or in accordance with the 
financial incentive program relevant for a joint projec t. 
Depending on the nature of the R&D collaboration agreement between the two countries, the 
collaboration's approval can be provided without financial assistance (self -financing of the applicant 
company).  
5. To whom the subsidy is provided  
Technological indu strial companies from all industry sectors that wish to develop or upgrade the 
development of products, services or manufacturing processes with an international partner.  
Israeli technology companies and start -ups seeking to create strategic alliances and partnerships 
with companies and organizations abroad, to expand their operations, to undertake Beta site and 
trial (pilot) projects, to gain access to innovative R&D infrastructure abroad (labs, simulators, etc.), 
locate additional sources of financing, br eak into new markets and benefit from the access to 
knowledge and technology existing overseas.  
6. Duration  
Ongoing . 
7. Budget/expenditure  
Actual Annual Disbursement (in million NIS)  
2017  41.9 
2018  42.6 
2019  47.6 
8. Trade Effects  
The R&D financed by the program, by definition, involves more than one country, and an increase 
in trade is likely, contingent on the success of the program.  G/SCM/N/343/ISR  
 
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  R&D Collaboration with Multinational Corporations Program (MNC)  
The program connects foreign multinational corporations (M NCs) and innovative Israeli companies.  
Israel has been frequently referred to as the "Start -up Nation" with over 600 net new start -ups 
established annually. While start -ups are in many cases the ones to make the technological 
breakthrough, they are often complemented by the involvement of large  companies, in particular 
large multinational organizations, who serve as a strategic partner and assist in commercialization, 
manufacturing and in opening the door to global markets.  
In order to encourage the creation of MNC -Start-up partnerships in Israe l, the Israel Innovation 
Authority operates a dedicated Global Enterprise R&D Collaboration Program.  
1. The Authority Responsible for the Subsidy  
The Innovation Authority . 
2. Legal Basis  
Law for the Encouragement of Industrial Research and Development, 5744 -1984. 
3. Policy objective and/or purpose  
To enable small and medium Israeli companies to establish relationships with MNCs and take part 
in their technological and marketing activities. The program encourages networking and strategic 
coopera tion between the two sides.  
4. Form of the subsidy  
Israeli companies receive a conditional grant of 20% -50% of the development budget approved by 
the Research Committee of the Authority.  
Israeli companies receive assistance and support from the MNCs in the fo rm of consulting, services 
and resources.  
Israeli companies may keep their intellectual property (IP) or share the ownership of it with the 
MNC, or provide the MNC with a non -exclusive license to use the new knowledge through an 
agreement between the proje ct partners.  
The MNC receives services such as scouting for possible partners and IP rights in the new projects 
(see above). In addition, the MNC is informed of the due diligence results of the Israeli partner 
companies.  
5. To whom the subsidy is provided  
Qualification requirements for Multinational Corporations include:  
1. Annual revenues exceeding USD 1.5 billion 
2. Significant investment in R&D  
3. Worldwide presence of R&D facilities and activities  
4. Upon qualification, the MNC will be required to sign a M emorandum of Understanding 
with the Israel Innovation Authority, which will settle the terms of cooperation between 
the MNC and the Israeli company.  
Qualification requirements for Israeli companies include:  
1. Strong R&D focus  
2. Annual revenues not exceed ing USD 70 million 
3. No affiliation to the MNC  G/SCM/N/343/ISR  
 
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  6. Duration  
Ongoing . 
7. Budget/expenditure  
Included in the general budget for the Bilateral Programs (as described above).  
8. Trade Effects  
The R&D financed by the program, by definition, involves more than one country, and an increase 
in trade is likely, contingent on the success of the program.  
Bi-national Funds  
The Israel Innovation Authority operates bi -national funds along with its counterparts in foreign 
countries, in accordance with the agreements signed b etween the Israeli government and the 
governments of the respective partner countries. Each country allocates dedicated funds to finance 
joint R&D projects between Israeli and foreign companies. Currently, there are a number of 
bi-national funds in operati on. 
1. The Authority Responsible for the Subsidy  
The Innovation Authority . 
2. Legal Basis  
Law for the Encouragement of Industrial Research and Development, 5744 -1984. 
3. Policy objective and/or purpose  
To increase the competitiveness and relative advantage of Israe li companies in the global market, 
by encouraging cooperation between them and foreign companies, in addition to promotion and 
development of new and complementary technologies, while reducing the financial and technological 
risk exposure.  
4. Form of the subs idy 
1. Assistance in finding a partner.  
2. Financial assistance of up to 50% of the approved budget for a R&D project.  
3. One-stop-shop for ongoing support throughout the life of a collaboration project, from 
proposal preparation and submission, until end of final technological and fiscal reviews.  
5. To whom the subsidy is provided  
Israeli technology companies from all industrial sectors that seek to develop or upgrade innovative 
products or processes with an international partner.  
Technology companies and sta rt-ups seeking to create strategic alliances and joint ventures with 
suitable companies abroad, in order to expand their operations, find additional sources for R&D 
funding, break into new markets and benefit from the knowledge and technology available abr oad. 
6. Duration  
Ongoing . 
7. Budget/expenditure  
Data not available.  G/SCM/N/343/ISR  
 
- 22 - 
 
  8. Trade Effects  
The R&D financed by the program, by definition, involves more than one country, and an increase 
in trade is likely, contingent on the success of the program.  
5  THE INNOVATION AUTHORITY  – ADVANCED MANUFACT URING DIVISION  
The Advanced Manufacturing Division focuses on promoting the implementation of R&D and 
innovation processes in companies in the manufacturing sector, in order to strengthen their 
competitiveness in the  global arena and improve productivity across a variety of industrial sectors. 
The programs offered by this division aims to boost manufacturing -oriented industries and 
encourage the owners of mainly small and medium -sized factories and plants to develop i nnovative 
products, technologies and manufacturing processes to realize these goals.  
Manufacturing -Oriented Industry  
Sectors in the manufacturing -oriented industry struggle to cope with increasing global competition. 
To prevent stagnation and regression in  the low -tech sectors, the Authority offers a variety of 
incentives designed especially to meet these sectors' needs and to encourage them to be more 
innovative.  
1. The Authority Responsible for the Subsidy  
The Innovation Authority . 
2. Legal Basis  
Law for the En couragement of Industrial Research and Development, 5744 -1984. 
3. Policy objective and/or purpose  
To encourage manufacturing -oriented enterprises to promote and implement innovative 
technological processes, such as the development of innovative products, impr ovement of existing 
products and production processes. In addition, this program assists factories in developing new 
strategies based on technological differentiation, in order to create competitive advantages in both 
domestic and international markets.  
4. To whom the subsidy is provided  
Israeli manufacturing -oriented industry companies, from all four R&D intensity levels: Low, 
Med-Low, Med -High, High.  
For companies from Low and Med -Low R&D intensity sectors, more than 50% of sales must be based 
on self -produc tion in order to qualify for the program.  
For Med -High and High intensity levels, two more conditions apply:  
1. At least 30% of employees work in manufacturing (and no less than 3 employees).  
2. Up to 25 R&D employees.  
Companies that wish to determine whet her their activities qualify for participation in this incentive 
program can apply to the Authority, requesting it to carry out a preliminary examination regarding 
their affiliation to the low -tech industry.  
5. Duration  
Ongoing . G/SCM/N/343/ISR  
 
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  6. Budget/expenditure  
Actual Annu al Disbursement (in million NIS)  
2017  110.1  
2018  121.1  
2019  143.8  
7. Trade Effects  
The products or processes financed by the programmes may lead to tangible commercial results, 
and increase the capabilities and competitiveness of the firms involved, effecting trade in a way 
similar to any new products or processes by a company.  
R&D Preparatory Incentive Program for Companies in the Low -Technology Industry  
Founded in 2018, a preparat ory incentive program is a complementary tool operated by the Authority 
in order to assist low -tech industry companies that are not experienced in carrying out R&D activities 
and innovation processes, or companies that require focus and guidance with their  R&D activities. 
As part of the program, the participating companies get partial funding for their counselling 
expenses, including mapping and examination of existing technological capabilities, formulation of 
future goals, examination of technological gap s, and guidance for improving their capabilities 
through the implementation of technology and more advanced processes.  
1. The Authority Responsible for the Subsidy  
The Innovation Authority . 
2. Legal Basis  
Law for the Encouragement of Industrial Research and Development, 5744 -1984. 
3. Policy objective and/or purpose  
To create a corporate culture change in the low -tech industry sectors, including instilling values and 
working methods for continuous R&D and innovation derived from market needs. This program aims 
to increase the competitiveness of the participating companies through implementing R&D processes 
and adopting new technologies.  
4. Form of the subsidy  
1. In Israel's geographic periphery, the Authority will fund 75% of the consultancy fee and 
the company will fund 25% of this fee, with a max budget of NIS 100,000.  
2. In Israel's geographic center, the Authority will fund 66% of the consultancy fee and 
the company will fund 25% of this fee, with a max budget of NIS 75,000.  
3. The hourly consulting rate limit is NIS 200 per hour. The company will receive funding 
of up to 200 hours.  
4. As for the financing of the market survey, patent survey or technology survey – the 
Authority will fund 75% of the actual cost up to NIS 12,000 plus VAT.  
5. To whom the subsidy is provi ded 
Israeli manufacturing -oriented industry companies, from all four R&D intensity levels: Low, 
Med-Low, Med -High, High.  
For companies from Low and Med -Low R&D intensity sectors, more than 50% of sales must be based 
on self -production in order to qualify f or the program.  G/SCM/N/343/ISR  
 
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  For Med -High R&D intensity levels, two more conditions apply:  
1. At least 30% of employees work in manufacturing (no less than 3 employees).  
2. Up to 25 R&D employees.  
6. Duration  
Ongoing . 
7. Budget/expenditure  
Actual Annual Disbursement (in mill ion NIS)  
2018  4.0 
2019  5.5 
8. Trade Effects  
The products or processes financed by the programme may lead to tangible commercial results, and  
increase the capabilities and competitiveness of the firms involved, effecting trade in a way similar 
to any new products or processes by a company.  
6  THE INNOVATION AUTHO RITY – SOCIAL CHALLE NGES DIVISION  
The Social Challenges Division focuses on improving the effectiveness and quality of public sector 
services, as well as on enhancing social welfare and quality of life through technological innovation. 
The goals of this division are to harness the hi -tech industry to find solutions for a variety of 
substant ial problems in society and the public sector in Israel, to raise awareness of the special 
needs of the disabled population in areas such as health, security and food, and to mediate between 
them and the Israeli entrepreneurial community by encouraging and  creating demand for 
technological solutions.  
Support in R&D of Assistive Technology for the Disabled  
This unique incentive program encourages R&D of assistive technologies for the disabled and 
contributes to their quality of life while facilitating their integration into society, the community and 
the labour market. These developments benefit the disabled and enable significant financial saving 
on both social and national levels.  
1. The Authority Responsible for the Subsidy  
The Innovation Authority . 
2. Legal Bas is 
Law for the Encouragement of Industrial Research and Development, 5744 -1984. 
3. Policy objective and/or purpose  
Encouragement of R&D in industrial products that provide technological solutions for the disabled to 
enable them to integrate into society and the labour market. This incentive program is the result of 
collaboration between the Innovation Authority and the National Insurance Fund.  
4. Form of the subsidy  
Non-profit organizations receive support of 85% of the approved expenses for R&D. Com mercial 
companies receive support of 65% of the approved budget as a grant. The grant is provided for 
12 months, up to a total of NIS 900,000.  G/SCM/N/343/ISR  
 
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  5. To whom the subsidy is provided  
Israeli companies and non -profit organizations interested in developing technolog ies that serve 
groups with physical, mental or cognitive disabilities, who collectively represent up to 5% of the 
population.  
6. Duration  
Ongoing . 
7. Budget/expenditure  
Actual Annual Disbursement (in million NIS)  
2017  4.8 
2018  8.8 
2019  8.9 
8. Trade Effects  
The products or processes financed by the programme are innovative and cannot therefore compete 
with existing products. Normally, further work is necessary for the results of an R&D project to lead 
to a commercially exploitable process or product. Therefore, the programme has no direct impact 
on trade.  
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 program serves as an additional tool of t he government to encourage 
innovation through preliminary purchase of innovative technological solutions.  
1. The Form of the subsidy  
Non-profit organizations receive support of 85% of the approved expenses for R&D. Commercial 
companies receive support of 65% of the approved budget as a grant. The grant is provided for 
12 months, up to a total of NIS 900,000.  
The program offers two channels of support:  
1. Preliminary R&D incentive program intended for conducting technological and/or 
business feasibility assessm ent 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.  
2. The Authority Responsible for the Subsidy  
The Innovation Authority . 
3. Legal Basis  
Law for the Encouragement of Industrial Research and Development, 5744 -1984. 
4. Policy objective and/or purpose  
To provide enco uragement and assistance for entrepreneurs seeking to meet the public sector's 
challenges and needs with innovative technological solutions. The results of the program will enable:  
1. Improved public -government service for the citizens  
2. Streamlining and enhancement of public sector and public services sector  G/SCM/N/343/ISR  
 
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  3. Improved public accessibility of information  
4. Protection of public sector data systems.  
5. Form of the subsidy  
Funding of up to NIS 300,000: Financial support of up to 80% of the approved budget for  a period 
of up to 12 months.  
Funding of NIS 300,000 -4,000,000: Financial support of up to 50% of the approved budget for a 
period of up to 12 months.  
6. To whom the subsidy is provided  
Private Israeli companies or Israeli entrepreneurs seeking to develop, ma nufacture, and 
commercialize products, services, and processes that will support the goals of this program and will 
provide a technological innovative response to the needs prioritize by the Digital Israel Fund.  
7. Duration  
Ongoing . 
8. Budget/expenditure  
Actual Annual Disbursement (in million NIS)  
2017  29.2 
2018  35.5 
2019  33.5 
9. Trade Effects  
The products or processes financed by the programme are innovative and cannot therefore compete 
with existing products. Normally, further work is necessary for the results of an R&D project to lead 
to a commercially exploitable process or product. Therefore, the programme has no direct impact 
on trade.  
7  AID TO SMALL AND MED IUM-SIZED COMPANIES BY THE SMALL AND MED IUM BUSINESS 
AGENCY (SMBA)  
1. The Authority Responsible for the Subsidy  
Small and Medium Business Agency (SMBA).  
2. Legal Basis  
Government decisio n. 
3. Policy objective and/or purpose  
To provide assistance to  owners and entrepreneurs of small businesses in establishing, managing 
and expanding their businesses.  
4. Form of the subsidy  
• State loan guarantee: The subsidy is provided by means of a state deposit at the bank, 
offering the best terms of loans and parall el guarantees to small businesses. A small 
business that has an annual turnover of up to NIS 6.25 million can receive a loan of up 
to NIS 500 thousand or 8% of the business's annual turnover - the higher of the two. 
A medium business that has an annual tur nover of up to NIS 6.25 million can receive a G/SCM/N/343/ISR  
 
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  loan of up to 8% of the business's annual turnover. The loan is given for a period of up 
to five years with half a year grace.  
• Business development centers – Maof: The Small and Medium Businesses Agency has 
established 44 SBDCs (Small Business Development Centers) called "Maof centers". The 
SMBA is financing, monitoring and supervising these centers. These centers are meant 
to serve as a central address for small and medium entrepreneurs (SME) owners and 
for entrepreneurs that are planning new businesses. The main activity of Maof centers, 
designed as "one -stop shop" for entrepreneurs training, is business training such as 
workshops, courses, and consultancy for SMEs and for potential entrepreneurs. It also 
operates a few small projects such as business accelerators, assisting SMEs to set up 
their digital commerce platforms or assisting SMEs to get business credit from banks 
and funds.  
5. To whom the subsidy is provided  
Loans with government guarantee are provided to small enterprises with an annual turnover of up 
to NIS 100 million.  
Maof – the SBDCs are serving starting entrepreneurs and micro, small and medium enterprises, with 
emphasis to encourage business entrepreneurship among special or disadvantaged populati ons, 
such as ultra -Orthodox, minorities, new immigrants, unemployed and the peripheral population.  
6. Budget/Expenditure  
Actual Annual Government Expenditure of Israel Small and Medium Business Agency  
(in thousand USD) 
SBDC (MAOF)  
2017  45,000  
2018  50,000  
2019  45,000  
State loan guarantee: Approximately USD 20 million for each year from 2012.  
7. Duration  
Ongoing.  
8. Trade Effects  
In light of the scope and nature of the assistance provided, it is not possible to determine what, if 
any, trade effects may re sult from this program.  
Design Based Product Programme by the SMBA  
1. The Authority Responsible for the Subsidy  
Small and Medium Business Agency.  
2. Legal Basis  
Government decision . 
3. Policy objective and/or purpose  
The purpose of the programme is to increase awareness of the importance of industrial design, and 
by that to increase the competitiveness of such companies' products.  G/SCM/N/343/ISR  
 
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  4. Form of the subsidy  
Grants amounting up to 60 % of the expenses on designing and planning and up to USD 57,000.  
5. To whom the subsidy is provided  
The subsidy is provided to manufacturers employing up to 100 employees in factories, and desire to 
develop innovative design of their products.  
6. Budget/Expenditure  
Actual annual disbursements  (in thousand USD) 
2017  1,500  
2018  1,500  
2019  1,500  
7. Duration  
Ongoing  
8. Trade Effects  
In light of the scope and nature of the assistance provided, it is not possible to determine what, if 
any, trade effects may result from this programme.  
IT Systems implementation for SMEs in Manufacturing I ndustry  
1. The Authority Responsible for the Subsidy  
Small and Medium Business Agency.  
2. Legal Basis  
Government decision . 
3. Policy objective and/or purpose  
The purpose of the programme is to increase the level of digitization and automation in the industrial 
manufacturing sector, so as to increase productivity in the industry.  
4. Form of the subsidy  
Grants amounting to 50 % of the IT systems implementation expen ses, and up to USD 143,000.  
5. To whom the subsidy is provided  
The subsidy is provided to manufacturers with annual turnover of up to  USD 28.5m (NIS 100 million) 
in factories that implement IT systems.  
6. Budget/Expenditure  
Actual annual disbursements ( in thousand USD)  
2018  3,400.  G/SCM/N/343/ISR  
 
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  7. Duration  
The program was effective through 2018 only.  
8. Trade Effects  
In light of the scope and nature of the assistance, it is not possible to determine what, if any, trade 
effects may result from this programme.  
IT Systems implementation for SMEs in commerce and Services Sector which are located 
in the North  
1. The Authority Responsible for the Subsidy  
Small and Medium Business Agency.  
2. Legal Basis  
Government decision.  
3. Policy objective and/or purpose  
The purpose of the program is to increase the digitization and automation of SMEs in the commerce 
and services sector, so as to increase productivity in that sector.  
4. Form of the subsidy  
Grants amounting to up to 50% of the IT systems and innovation impleme ntation expenses, and up 
USD 143,000.  
5. To whom the subsidy is provided  
The subsidy is provided to SMEs in the commerce and services sector in the Northern part of Israel, 
with annual turnover of up to USD 28.5m (NIS 100 million), that desire to implement IT  systems.  
6. Budget/Expenditure  
Actual annual disbursements ( in thousand USD)  
2018  3,400  
7. Duration  
The program was effective through 2018 only.  
8. Trade Effects  
In light of  the scope and nature of the assistance, it is not possible to determine what, if any, trade 
effects may result from this programme.  
IT Systems implementation for SMEs in Food Manufacturing (Meet and Fish and Gluten 
free)  
1. The Authority Responsible for the Subsidy  
Small and Medium Business Agency.  
2. Legal Basis  
Government decision . G/SCM/N/343/ISR  
 
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  3. Policy oobjective and/or purpose  
The purpose of the program is to help SMEs in food manufacturing (Meat, Fish, and Gluten -free) to 
meet the GMP (Good Manufacturi ng Practice) and HACCP standards.  
4. Form of the subsidy  
Grants amounting to up to 50% of the expenses and investment to meet the GMP or HACCP 
standards, and up to USD 71,400.  
5. To whom the subsidy is provided  
The subsidy is provided to food (Meat, Fish and Glu ten-free) manufacturers that employ up to 
100 employees, or with annual turnover of up to USD 28.5m (NIS 100 million) in factories, and with 
a need to meet the GMP and HACCP standards due to new regulation.  
6. Budget/Expenditure  
Actual annual disbursements ( in thousand US D) 
2017  1,771  
2018  1,771  
Duration  
The program was effective through 2017 -2018 only.  
7. Trade Effects  
In light of the scope and nature of the assistance, it is not possible to determine what, if any, trade 
effects may result from  this programme.  
8  FOREIGN TRADE ADMINI STRATION  
The Foreign Trade Administration (FTA) at the Israeli Ministry of Economy and Industry, initiates, 
manages and promotes Israel's trade activities and trade policy.  
Smart Money Programme  
1. The Authority Responsible for the Subsidy  
Foreign Trade Administration, Ministry of Economy and Industry.  
2. Legal basis  
Government decisions . 
3. Policy objective and/or purpose  
The purpose of the programme is to encourage exporters to adopt advanced marketing strategies, 
to use advanced marketing tools, to assist them in building a marketing infrastructure and to provide 
them with the necessary marketing training.  
4. Form of the subsidy  
The subsidy is in the form of a loan which offers 50% reimbursement of certain approved 
expenditures. Companies owned by minority groups in Israel (Muslims, Druze, Bedouins, Christians 
and Circassians) receive 75% reimbursement of the approved expenditure. Those companies receive 
additional preferential treatment in the eligibility r ules and the allocation process.  G/SCM/N/343/ISR  
 
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  The programme supports the following expenses: training in international marketing, market 
analysis, marketing communication, participation in professional exhibitions, marketing consulting, 
office establishment and managem ent, employing local employees, flight expenses, legal assistance, 
regulatory expenses and foreign trade insurance. The loan is given for a 2 -3 year period, while loan 
repayments are required when the company presents profits from its activity.  
5. To whom the  subsidy is provided  
The subsidy is provided to companies with international sales of over USD 250,000 and a turnover 
of no more than approximately USD 55,000,000 (200 million NIS) in all sectors.  
6. Budget/Expenditure  
Actual annual disbursements (in thousand  USD) 
2017  20,418  
2018  22,253  
2019  10,056  
7. Duration  
On going . 
8. Trade Effects  
It is not possible to estimate yet what, if any, trade effects may result from the use of this 
programme in its current form.  
Shalav  – A gateway for International Marketing Programme  
1. The Authority Responsible for the Subsidy  
Foreign Trade Administration, Ministry of Economy and Industry.  
2. Legal basis  
Government decisions . 
3. Policy Objective and/or Purpose  
The purpose of the programme is to encourage small and medium companies to invest in global 
marketing efforts.  
4. Form of the Subsidy  
The subsidy in the form of a loan, offers 50% reimbursement of certain approved expenditures. The 
Programme supports the following expenses: tra ining in international marketing, market analysis, 
marketing communication, participation in professional exhibitions, marketing consulting, flight 
expenses, legal assistance, regulatory expenses and foreign trade insurance. The loan is given for a 
2 year period, while loan repayments are required when the company presents profits from its 
activity.  
5. To Whom the Subsidy is provided  
The subsidy is provided to companies with international sales of less than USD 250,000 and a 
turnover of not less than USD 125,0 00 (NIS 500,000) but not more than USD 25 million 
(NIS 100 million).  G/SCM/N/343/ISR  
 
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  6. Budget/Expenditure  
Actual annual disbursements (in thousand USD) 
2017  3,139  
2018  4,479  
2019  3,708  
* The program was launched during the second half of 2017  
7. Duration  
Ongoing . 
8. Trade Effects  
It is not possible to estimate yet what, if any, trade effects may result from the use of this 
programme.  
Infrastructure Consortium  
1. The Authority Responsible for the Subsidy  
Foreign Trade Administration, Ministry of Economy and Industry . 
2. Legal basi s 
Government decisions.  
3. Policy Objective and/or Purpose  
The programme encourages the establishment of a marketing demonstration site for a group of at 
least 5 companies together.  
4. Form of the Subsidy  
The subsidy is in the form of a loan amounting up to 50 % of the approved expenditure. The fund 
supports expenses related to establishing and managing a marketing demonstration site. The loan 
is given for up to 3 years, while loan repayments are required when the company presents profits 
from its activity.  
5. To Who m the Subsidy is provided  
The subsidy is provided to a group of at least 5 companies with accumulative international sales in 
the total of USD 2,000,000 . 
6. Budget/Expenditure  
Actual annual disbursements (in thousand US D) 
2017  139 
2018  807 
7. Duration  
The Infrastructure Consortium Programme ceased to be active in 2019.  
8. Trade Effects  
In light of the scope of the program, no trade effects have resulted from the use of this programme.  G/SCM/N/343/ISR  
 
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  International Projects Fund  
1. The Authority Responsible for the Subsidy  
Foreign Trade Administration, Ministry of Economy and Industry.  
2. Legal basis  
Government decision.  
3. Policy Objective and/or Purpose  
The Fund's goal is to encourage Israeli companies to apply for tenders or projects abroad, by 
supporting the expenses of feasib ility studies, tenders' applications and background surveys.  
4. Form of the Subsidy  
The subsidy is in the form of a loan amounting up to 50 % of the approved expenditure. The fund 
supports expenses for consultants, travel, equipment and marketing materials. T he loan is given per 
project, while loan repayments are required when the company succeeds in obtaining the project or 
wining the tender.  
5. To Whom the Subsidy is provided  
The subsidy is provided to any company in all sectors, which presents a specific offer  for a project 
containing at least 35% Israeli added value. The estimated financial value of a project for feasibility 
study or for a background survey is at least USD 500,000.  
6. Budget/Expenditure  
Actual annual disbursements (in thousand USD)  
2017  1,389  
2018  1,502  
7. Duration  
Due to low demand, as of 2019, the International Project Fund ceased to be active.  
8. Trade Effects  
In light of  the scope and nature of the assistance, no trade effects have resulted from this 
programme.  
9  SUPPORT FOR EMPLOYME NT AND TRAINING  
Training Courses for Adults  
1. The Authority Responsible for the Subsidy  
Vocational Training and Development Bureau, Ministry of L abour, Social Affairs and Social Services.  
2. Legal Basis  
Government decisions.  
3. Policy Objective and/or Purpose  
To provide vocational courses for job seekers and targeted groups such as single parents, minorities, 
people with disabilities, who need a vocation  in order to find a suitable job.  G/SCM/N/343/ISR  
 
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  4. Form of the Subsidy  
The Ministry of Labor, Social Affairs and Social Services finances the courses and the workshops.  
5. To Whom the Subsidy is Provided  
Daytime vocational courses for job seekers and targeted groups such as single parents, minorities, 
people with disabilities who need a vocation in order to find a suitable job in the modern labour 
market.  
The courses take place in vocational training institutes for a group of about 20 participants, generally 
unemployed. At th e end of the course, the participants go through governmental exams and get 
official certification from the Ministry.  
6. Budget/Expenditure  
Actual annual disbursements  (in thousand US D) 
2017  16,351  
2018  19,967  
2019  15,911  
7. Duration  
Ongoing.  
8. Trade effects  
In light of the scope and nature of the assistance, no trade effects may result from this programme  
On the Job Training  
1. The Authority Responsible for the Subsidy  
Vocational Training and Development Bureau, Ministry of Labour, Social Affairs and Soc ial Services.  
2. Legal Basis  
Government decision.  
3. Policy Objective and/or Purpose  
The purpose of the programme is to integrate job seekers in the workforce, lower the unemployment 
rate and instil a professional base during the period of employment in factorie s and construction 
sites.  
4. Form of the Subsidy  
A three month's participation in the employee's salary.  
5. To Whom the Subsidy is Provided  
Any employer who is interested in hiring new employees and provides on the job training according 
to the job's requirement s. The training is implemented through a mentoring system.  
Yearly Total Subsidy . G/SCM/N/343/ISR  
 
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  6. Budget/Expenditure  
Actual annual disbursements (in thousand  USD) 
2017  1,384  
2018  1,122  
2019  434 
7. Duration  
The program has been put on hold for lack of budget.  
Trade Effects  
In light of the scope and nature of the assistance, no trade effects may result from this programme  
8. Other Relevant Information  
The subsidy is given after the employee completes 6 months of employment in a high demand 
position. The employee is eligi ble for the subsidy only if he/she commences employment no later 
than 12 months after completing their mandatory military service.  
Factory Study Classroom  
1. The Authority Responsible for the Subsidy  
Vocational Training and Development Bureau, Ministry of Labour, Social Affairs and Social Services . 
2. Legal Basis  
Government decisions.  
3. Policy Objective and/or Purpose  
The purpose of the programme is to integrate job seekers into the workforce, lower the 
unemployment rate and to instil a professional base during the period of employment.  
4. Form of the Subsidy  
Providing a Professional Training Course . 
5. To Whom the Subsidy is Provided  
Any employers (factories, employer association, industry groups) who are interested in training job 
seeking students in prep aration towards full employment.  
Yearly Total Subsidy . 
6. Budget/Expenditure  
Actual annual disbursements (in thousand  USD)  
2017  1,913  
2018  1,393  
2019  1,445  
7. Trade Effects  
In light of  the scope and nature of the assistance, no trade effects may result from this programme . G/SCM/N/343/ISR  
 
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  Apprenticeship Training Program - "Starter"  
1. The Authority Responsible for the Subsidy  
Vocational Training and Development Bureau, Ministry of Labour, Social Affairs a nd Social Services . 
2. Legal Basis  
Government decisions.  
3. Policy Objective and/or Purpose  
The purpose of the "Starter" programme is to provide an apprenticeship professional training that 
integrates both theoretical and practical training in an academic institute, while being employed and 
acquiring professional experience. The programme provides skilled and experienced employees for 
the employers and enables job seekers to acquire a profession parallel to work experience.  
4. Form of the Subsidy  
Professional training courses and workshops for job seekers and subsidies for employers for their 
financial participation in the employees training.  
5. To Whom the Subsidy is Provided  
The subsidy is provided in two forms:  
1. Job seekers and employees that work in  low-skilled positions who are interested in 
acquiring a profession and integrating in to that professional field.  
2. Employers who are in need of skilled employees for vacant positions.  
6. Subsidy per Employee  
Actual annual disbursements (in thousand  USD) 
2017 827 
2018  727 
2019  1,014  
7. Duration  
Ongoing . 
8. Trade Effects  
In light of the scope and nature of the assistance, no trade effects may result from this programme . 
Vouchers programme  
1. The Authority Responsible for the Subsidy  
Vocational Training and Development Bureau, Ministry of Labour, Social Affairs and Social Services . 
2. Legal Basis  
Government decisions.  G/SCM/N/343/ISR  
 
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  3. Policy Objective and/or Purpose  
The purpose of the programme is to encourage unemployed, job seekers among targeted population 
groups in the population to acquire vocational training and participate in the Labour market.  
4. Form of the Subsidy  
Vouchers given by Vocational Training and Development Bureau, Ministry of Labour, Social Affairs 
and Social Services. Each voucher is up to 2,178$, for prof essional courses that can be taken at one 
of the institutions for vocational training.  
5. To Whom the Subsidy is Provided  
Unemployed, job seekers and targeted population groups such as single parents, minorities, people 
with disabilities, people above age 55,  former prisoners and others who need a vocation in order to 
find a suitable job in the Israeli market.  
6. Subsidy per Employee  
Actual annual disbursements (in thousand US D) 
2017  11,910  
2018  14,517  
2019  12,852  
7. Duration  
Ongoing.  
8. Trade Effects  
No trade effects may result from the use of this programme.  
The Authority for Investments and Development of the Industry and Economy (formerly 
called the Israel investment Center) at the Ministry of Economy and Industry  
Employment Grant Program  
1. The Authority Respo nsible for the Subsidy  
The Authority for Investments and Development of the Industry and Economy at the Ministry of 
Economy and Industry  
2. Legal basis  
The Law for the Encouragement of Capital Investments, 5719 -1959. 
3. Policy Objective and/or Purpose  
To increa se employment in the disadvantaged areas of Israel as well as within specific populations 
with high rates of unemployment.  
4. To Whom the Subsidy is Provided  
Subsidies under this programme are provided to companies establishing or expanding industrial 
plants,  call centers, computer service support centers or logistic centers, and subject to conditions 
as described above. In order to be eligible for this program these companies have to employ a 
minimum number of employees.  G/SCM/N/343/ISR  
 
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  5. Budget/Expenditure  
Actual annual disbu rsements ( in thousand US D) 
2017  18,121  
2018  79,900  
2019  35,358  
6. Duration  
Ongoing.  
7. Trade Effects  
The programme assists businesses in disadvantaged areas of the country. Therefore, it is hard to 
estimate what, if any, trade effects may result from this program.  
Investment Incentives in the Law for the Encouragement of Capital Investment  
1. The Authority Responsible for the Subsidy  
The Authority for Investments and Development of the Industry and Economy at the Ministry of 
Economy and Industry  
2. Legal basis 
The Law for the Encouragement of Capital Investment, 5719 - 1959.  
3. Policy Objective and/or Purpose  
The purpose of this program is to encourage both local and foreign capital investments and 
commercial entrepreneurship, particularly innovation and econ omic activities, in disadvantaged 
areas.  
4. Form of the Subsidy  
The support given under this programme is in the form of grants and/or reduced rates of taxation.  
Grants of up to 30% of the approved capital investment are given to approved enterprises located 
in disadvantaged areas.  
5. To Whom the Subsidy is provided  
Subsidies under this programme are provided to globally competitive industrial companies located 
in disadvantaged areas.  
6. Budget/Expenditure  
Actual annual disbursements (in thousand US D) 
2017  120,783  
2018  304,313  
2019  124,242  
7. Duration  
Ongoing.  G/SCM/N/343/ISR  
 
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  8. Trade Effects  
The assistance under this programme is granted to enterprises located in disadvantaged areas, in 
order to offset local investment disadvantages and raise the levels of income and employment in 
structurally weak areas. Therefore, the programme is neutral in terms of competition and has no 
effect on competition in international trade.  
Industrial Gas Installation System programme  
1. The Authority Responsible for the Subsidy  
The Authority  for Investments and Development of the Industry and Economy at the Ministry of 
Economy and Industry . 
2. Legal basis  
Government decision.  
3. Policy Objective and/or Purpose  
The purpose of the programme is to create conditions for the safe and efficient developme nt and 
use of an Industrial Gas Installation system, in accordance with Israeli governmental law and policy.  
4. Form of the Subsidy  
Grants are given both for the costs of connection to the Industrial Gas Installation system and for 
conversion to consume natur al gas.  
Factories with annual consumption of up to 500,000 m3 gas are entitled to a grant of up to 
USD 72,000 and with consumption of up to 1,000,000 m3 are entitled to a grant of up to 
USD 200,000. Bigger consumers are entitled to a grant of up to USD 314,000. 
5. To Whom the Subsidy is provided  
The subsidy can be provided to all natural gas consumers in the country as long as they pay at least 
50% of the connecting to to the Industrial Gas Installation system's costs.  
6. Budget/Expenditure  
Actual annual disburse ments (in thousand US D) 
2017  12,133  
2018  5,285  
2019  1,445  
7. Duration  
Terminated at the end of 2019.  
8. Trade Effects  
The subsidy is provided mainly to companies in disadvantaged areas of the country and was designed 
to encourage gas consumption in the industrial sector and therefore its effect on trade, if any, is 
very limited.  G/SCM/N/343/ISR  
 
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  10  OTHER FORMS OF SUBSI DIES  
Cost of Land Development  
1. The Authority Responsible for the Subsidy  
Industrial Zones Administration, at the Ministry of Economy and Industry.  
2. Legal Basis 
Government decisions.  
3. Policy Objective and/or Purpose  
Participation in the cost of land development in industrial areas in the disadvantaged areas, as a 
means of encouraging enterprises to locate in those areas. Land development includes inter alia dirt 
work, access roads and lights.  
4. To Whom the Subsidy is Provided  
Enterprises establishing their industries in a disadvantaged area in accordance with the Law of 
Encouragement of Investment Capital and upon receiving approval from the authority resp onsible 
for allocation of land.  
5. Form of Subsidy  
Participation in the cost of land development varies from 30 % up to 90 %, according to several 
parameters, mainly the distance from the central part of Israel, past data on land demand for 
industry and social -economic rating of the municipality.  
6. Budget/Expenditure  
Actual annual disbursements (in thousand US D) 
2017  44,973  
2018  40,189  
2019  25,807  
7. Duration  
Ongoing.  
8. Trade Effects  
The programme provides participation of the Government in the development of basic infrastructure 
(land development), therefore the programme has no trade effects.  
Eilat Free Trade Zone  
1. The Authority Responsible for the Subsidy  
The Ministry of Finance.  
2. Legal Basis  
Eilat Free Trade Zone Law - 1985.  G/SCM/N/343/ISR  
 
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  3. Purpose of the programme  
The purpose of the programme is to encourage the development of the city of Eilat, located at 
Israel's most Southern border.  
4. Form of the Subsidy  
Several types of tax concessions . 
Most products (imported or domestically produced) purchased in Eila t are exempt from value -added 
tax. This tax benefit is available to Eilat residents and companies, for products consumed in Eilat. 
Employers receive tax refunds for employees of up to 20 % of gross wages paid to employees.  
5. To Whom the Subsidy is Provided  
The tax concessions are granted to Eilat residents and companies located in Eilat.  
Budget/Expenditure  
Data not available.  
6. Trade Effects  
It is not possible to estimate what, if any, trade effects may result from the use of this programme.  
Free Port Zone  
1. Authority Responsible for the Subsidy  
Ministry of Finance and Ministry of Transportation.  
2. Legal Basis  
Free Port Zone Law - 1969.  
3. Purpose of the programme  
The objective is to promote the development of the port city of Eilat at Israel's most Southern border.  
4. To Whom the Subsidy Is Granted  
Enterprises located in the Free Port Zone of Eilat.  
5. Form of the Subsidy  
Various forms of tax incentives including, inter alia : 
1. Enterprises in zone A (like Eilat) are entitled to reduction in income taxes to 9% in 2014 -
2016;  
2. A tax of 15 % on dividends paid out of the above income with no stipulated time limit;  
Budget/Expen diture  
Data not available.  
6. Trade Effects  
It is not possible to estimate what, if any, trade effects may result from the use of this programme . 
 
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