In a joint announcement, the Israel Innovation Authority, the Ministry of Health, and the Ministry for Social Equality have presented the third part of the program for assisting Israeli startups in carrying out trials, this time in the area of health and medical technologies. As first reported by "Globes", the Israel Innovation Authority together with government ministries is offering government support worth NIS 100 million annually for pilot schemes by startup companies, with health allocated about one third of the aid program, amounting to some NIS 30 million.
Two months ago, the government approved the national plan for digital health, one aim of which is to promote innovation and implementation of advanced solutions in health organizations in Israel. This means solutions in the areas of personalized medicine, preventative medicine, distance medicine, systems that support medical decision making, data-based medical equipment, solutions for empowering the patient, and other digital health solutions.
The support track for research and development and pilot schemes in digital health will assist trials in Israel's health organizations and in the IDF. Unlike in pilots in other spheres, in health there is high sensitivity over approval of exemptions from existing restrictions, while on the other hand the ability of technology companies to develop health tools and services depends in many cases on being able to test the technology in real conditions. The intention is to test the projects in a closed, controlled environment.
Under the program, medical and health technology companies will be able to receive financial support amounting to 20-50% of expenditure on approved R&D, and in the case of programs with the potential of exceptional impact on advancing the health system and that represent technological breakthroughs, support covering 60-75% of R&D expenditure. The support will enable a company to make progress on commercializing its product and introducing it to the market through implementation at the trial site. The program offers participation in the risks of the development process but imposes no obligation to share future profits.
Innovation Authority CEO Aharon Aharon said, "The objective of this special track is to provide a coordinated government response to market failures in the innovation ecosystem, particularly where there is substantial government influence and regulation. Such failures may be financial, because of the high risk and complexity of projects, or may arise from restricted access to sites and trial installations or difficulties in obtaining regulatory certification and approval for implementation."
Published by Globes [online], Israel business news - www.globes-online.com - on June 12, 2018
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