Israeli high-tech sources are lambasting Israel's missed opportunity in joining EU Framework Programmes for R&D by getting back only half of the €200 million investment.
The EU has invited Israel to join the EU Seventh Framework Programme for R&D. The EU Sixth Framework Programme for R&D, which terminates in 2006, amounted to €19 billion; Israel had to contribute €200 million to participate. The €70 billion EU Seventh Framework Programme for R&D will last for seven years. Israel's contribution to the program has not yet been set.
EU Framework Programmes for R&D establish groups of companies collaborating on joint R&D projects. Under these programs, Israeli companies collaborate with giants such as Royal Philips Electronics (NYSE:PHG; AEX:PHI), France Telecom (NYSE:FTI), Airbus, and Peugeot. The companies jointly develop products, with each company contributing its expertise under specific consortia agreements on the basis of the intellectual property each company brings.
ARTTIC Israel - Halevi Dweck & Co. chairman and CEO Amir Halevi said the way Israel is acting vis-à-vis the EU Framework Programme for R&D was resulting in missing opportunities worth hundreds of millions of dollars. ARTTIC Israel prepares and manages EU R&D projects for Israeli companies.
Halevi said, "The state is abetting a huge missed opportunity. The EU Sixth Framework Programme for R&D is about to end with a huge deficit, because Israel pays $40-50 million a year participation fee, which means we're about getting back about half."
Halevi estimates that proper preparations will cost Israel an additional €5-10 million, which will enable companies to see an additional return of tens of millions of euros a year.
Halevi also claims that Israel's current policy is missing business development as well. " Israeli companies get advice from ISERD - The Israel Directorate for the EU Framework Programme, which handles participation on behalf of the Office of the Chief Scientist, not to lead projects but to join existing ones. The moment you only join a project, your chance of entering falls, because you're not a central player and you're not always needed."
Published by Globes [online], Israel business news - www.globes.co.il - on March 22, 2005