Israeli Diamond Portal Reports:Good News for the Israeli Economy - Yield from R&D in Israel Ranges b

PRLog (Press Release) – Jun 30, 2008 – A report recently published by Israel’s Ministry of Industry, Trade and Labor studied the returns from government financial support of R&D projects. According to the figures, returns yielded between a whopping 473% and a mind-boggling 1000%.

The aim of the report was to examine the effect of government support of R&D on the Israeli economy in order to improve the system of government allocations.

Aside from the startling return figures, the report discovered that the government support generates new R&D activity in the Israeli economy which would not be undertaken without the funding.  

Using a new method to assess additionality, the study revealed that the public funds were managed effectively, thus facilitating the growth of the Israeli economy and industry.

The results reflect a minimal multiplier of 5 to 6 times between the original government investment and the future premium for the Israeli industry’s production, for an IS5 million grant to a firm with a IS50 to IS300 million turnover.

Following the report’s publication, one of the main conclusions reached is that the high additionality attests to the creation of a new R&D program which would not be capable of achieving such impressive volume without the leverage of the government support mechanism.