Israel

The aforementioned Israel Innovation Authoritywas established at the beginning of 2016, replacing the Office of the Chief Scientist (OCS) of the Ministry of Economy and Industry. The goal is to adapt the innovation strategy of the former OCS to changing circumstances and improve the government’s capabilities. Unlike the OCS, which was part of the Ministry of Economy and Industry, the Israel Innovation Authority is an independent authority. It also has the professional capabilities and flexibility to allow it to take initiatives and efficiently promote technological innovation in industry at a pace that befits the market. National reports and STI policy documents show a greater focus on biotechnology, nanotechnology and low-tech industries; a growing interest in cleantech sectors; and an ambition to establish and develop an information system in innovation.

Maintaining STI leadership in the current fiscal context requires better co ordination of government agencies and policy evaluation. The lack of a formal platform for all key players to exchange ideas about innovation strategies has been identified as a possible barrier to co ordination. Such a platform is under development in order to involve STI policy shapers and implementers. There is also an ongoing debate about the need for a more top-down strategy. Evaluation of STI policy has received particular attention. The Strategy and Economic Research Unit (SERU) and a comprehensive evaluation methodology have supported the institutionalisation of evaluation, with a more impact-oriented approach. Major entrepreneurial programmes (e.g. Tnufa, the technological incubator and seed company programmes) have been evaluated with a view to assessing their impact on the innovation ecosystem. The cybersecurity programme (KIDMA) was evaluated after the first three years by using internal data combined with external market-related data to describe its outcomes. The first three years of the dual-purpose technology incentives programme (MEIMAD) were also evaluated to assess its contribution to the transfer of technology from the military to the civilian market.

Although Israel’s RTA in ICT as measured by patent applications is above the OECD median, its indicator for Internet and ICT infrastructures is relatively low. The importance of the cybersecurity industry has grown immensely over the past decade. The KIDMA programme was launched in order to encourage R&D activity aimed at developing technological solutions in the field of cybersecurity. An evaluation of the programme’s first phase revealed new obstacles and challenges facing the cybersecurity industry. The second phase seeks to answer these challenges through a restructured programme and a new set of support tools for the Israeli cyber industry. A national cybersecurity incubator based on a public-private partnership has been established, and a National CyberSecurity Centre of Excellence has been created together with the United States under a bilateral R&D co operation agreement.

The Fuel Choices Initiative (formerly the Oil Substitutes Initiative) and the CyberSecurity initiative are Israel’s main smart specialisation programmes. The Fuel Choices Initiative includes a one-stop shop for firms, a VC backed programme, and assistance in establishing pilot facilities in petroleum substitutes. Its budget is USD 380 million (NIS 1.5 billion) for 2011 20. The CyberSecurity initiative comprises a few dedicated funds to encourage R&D in the field, with a budget of USD 45 million (NIS 180 million) for 2012 14. The initiative encourages the development of human capital in the cybersecurity field and is engaged in linking relevant military know-how to the industry.

The shortage of professional human resources will be a major obstacle for the Israeli STI system in the coming years, as the demand for engineers and technical professionals begins to outpace the supply. Although Israel’s adults have a high educational attainment, its youth do not perform very well in science by international standards, and the rate of doctoral graduates in science and engineering is relatively modest. The government is addressing these challenges on all fronts: encouraging high school students to study more maths, incentivising STEM studies in universities and attracting under represented groups in the population to participate in the innovation ecosystem. The Higher Education Plan (2011 16) aims to improve the quality and competitiveness of the higher education system. About 1 600 new researchers will be hired in universities to replace retiring senior researchers, resulting in a net gain of about 850 academic staff over the next six years. This new policy also aims to increase participation in tertiary education, in particular by encouraging minorities to study at universities.