Israeli technological incubators are government programs that provide funding and support for new technology startups. The incubators were established in 1991 to nurture innovative ideas and help new companies mature. Incubators provide $500,000-$750,000 in initial funding and involve mentoring from incubator owners. While some companies fail, the incubators have helped create an entrepreneurial culture in Israel and strengthened the economy through job growth and private investment in startup companies that have graduated from the program.

1. Technological Incubators
Sharing the Israeli
Experience
By Rina Pridor
Founder & former General Director
May 2011

2. Incubator ?
• A special environment for the creation or
development of a fragile, premature
creature, helping it to mature enough to
survive and become strong and healthy.
*Incubators for pre-mature babies, eggs or
chicks
*Green Houses for plants
*Business Incubators

3. The Israeli Incubators Program
• Established in 1991
• A Governmental initiative
• Adjusting an existing concept to
local needs
• Taking advantage of local
capabilities

6. Israeli Characteristics
* Technology, * Innovation,
* Research & Development,
*Preliminary phase,
*Fully financed by Incubator,
*$ 500,000 to $ 750,000,
* 85% Government - 15% Privet
*Limited incubation term: 2 to 3 Years

7. Israeli Characteristics
cont.
*Incubator’s involvement, discipline
responsibility
*Incentives to Incubators’ owners for investing
financial & strategic resources In the projects
*The Government Is not a business partner.
*Long run vision, patience.
*Accepting failure

8. Additional goals
• Entrepreneurial culture
• New Technologies
• Strengthening weak regions and communities
• Encouraging preferred technologies
• Repatriation of professionals
• Collaboration between Academia and Industry

9. Government Investments VS. Private Funds
Raised in Incubator Companies
1991 - 2008
Thousand Dollars
2,750,000
2,500,000
2,250,000
2,000,000
1,750,000
1,500,000
1,250,000
1,000,000
750,000
500,000
250,000
0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Cumulat ive Government Invesment s 5,100 21,600 44,980 68,560 99,560 130,660 162,160 192,760 222,591 254,158 286,308 313,440 339,460 364,673 396,126 428,915 461,760 509,389
Cumulat ive Privat e Funds 0 100 7,950 19,045 52,026 90,580 152,652 248,390 333,921 637,635 757,080 842,126 922,824 1,115,355 1,294,832 1,723,916 2,162,940 2,509,667