The technological incubators program was set up in 1991 following mass immigration from the countries of the former Soviet Union. There are today 26 technological incubators from Kiryat Shemona and Katzrin in the north to Dimona and Sde Boker in the south. Three incubators are in Jerusalem, including one privately funded technological incubator. Although the incubators were not designed specifically for new immigrants, it has turned out that about half of these projects are based on the ideas of new immigrants and the other half on ideas of veteran Israelis. The projects underway in the incubators reflect the country's traditional technological strengths.
Public bodies participate alongside the government in the expenses of running the incubators.
In addition, private donors, local authorities, universities and high-tech business enterprises are involved. The OCS's definition of success is the ability of the fledgling project to attract outside investors and thus be able to leave the protective environment of the incubator after two years. In the Israeli model the government is a full partner in the incubator process. Within the framework of the technological incubators the entrepreneurs are provided with subsidized premises, financial resources, project tools, professional guidance and administrative assistance. During its tenure in the enclosed environment of the incubator, a start-up company is meant to turn its abstract ideas into products of proven feasibility, innovative advantage and competitiveness in the international marketplace.