The Israel Innovation Authority announced on Wednesday a $9.5 million fund aimed at encouraging high-tech companies to expand into Israel’s war-battered northern and southern regions.
This funding, part of the “Leap to High-Tech” program, will support companies in opening new branches and hiring local talent, fostering economic growth and reducing disparities across the country.
The initiative is being launched in collaboration with the Ministry of the Negev, Galilee and National Resilience, the Ministry for Social Equality and the Tekuma Authority.
Under the program, companies will be eligible to receive financial support for training inexperienced employees, as well as funding for experienced workers who will mentor the new hires. The companies selected are expected to launch their programs within six months of receiving the grant, with an execution period of 12-24 months.
“Strengthening employment in the Negev and Galilee is a priority. The state has a vested interest in encouraging companies to expand their activities to the Negev and Galilee, thereby increasing quality employment and allowing talented young people to remain and build their future in these regions, while also attracting new, strong populations to the area,” said Yitzhak Wasserlauf, minister for the Development of the Negev, Galilee and National Resilience.
As part of the support, high-tech companies may receive:
• Up to 70% of the approved budget for a program with a scope of up to 1 million shekels ($273,000).
• Up to 50% of the approved budget for a program with a scope of up to 5 million shekels ($1.4 million).
• Up to 30% of the approved budget for a program with a scope of up to 15 million shekels ($4.1 million).
Companies interested in expanding their operations to the Negev, Galilee, and periphery regions can submit applications until Sept. 29.
Simultaneously, the Investment Authority at the Ministry of Economy and Industry has launched a program designed to assist in the establishment and relocation of knowledge-intensive, high-salary operations for businesses in the industrial and high-tech sectors in national priority areas and Jerusalem.
Companies may receive a grant of up to 30% of the cost of new employees’ salaries. The assistance includes covering up to 30% of the employees’ salaries, with the call for proposals open until Sept. 16.
“The ‘Leap to High-Tech’ program is designed to reduce the risk for high-tech companies considering following the path of many others and opening operations outside of their main headquarters,” said IIA CEO Dror Bin.
“This program aims to expand the human capital available to companies and also assists local entities in the periphery in offering high-tech companies an attractive package for establishing new activities. We see this program as a unique opportunity to expand the operations of high-tech companies while contributing to the development of high-tech across the country,” he added.
