New Opportunnities for R & D business in Israel
Statistics chows that in Israel arrived about 60,000 engineers and 12,000 scientists from USSR during last 6 years. The arrival of such “intellectual potential” caused in a sharp increase in the quantity of new workouts and projects of R & D and application character, demanding financial aid and implementation. There are raised the activity area which we may call as the “scientific business”, requiring serious marketing, scientific, technological and patent expertise. In order to “master” this flow of novelties the Israel state undertook number of important steps, such as foundation of technological incubators, other state programs etc.
The limitations of Israel market and specific investment policy of ministries and private companies, including bank structures, show the urgent necessity of involving foreign capital and organization of strategic partnership with foreign companies in order to create joint production, guidance of sale and patenting abroad of high-tech workouts and technological novelties. Many scientists and inventors-newcomers are “knocking at the doors” of different Israel departments and firms, looking for the way of their workouts application and creation of profitable business structures. Many projects by their technical contents and preliminary economical estimations have a powerful commercial potential and may serve as a base for creation of high-profitable business. In this it becomes of great importance the existence of some coordination group in Israel, carrying out the preliminary selection and preparation of projects, business plans and evaluation of the propositions according to the demands of the world market.
The planned budget of proposed group is $150,000 per year. The group will elaborate an investment policy for scientific business in Israel with allowance for real profitability of that. By the date of Ministry of Industry & Trade of Israel the Technological Incubators have more than 50% of successful projects, but for first stage, it is enough to assume that only 25% of project will give during at the nearest time a real high profit. On this assumption the group proposes investment in one, more interesting for you, of technological fields. By our calculation the investment in a lot of projects together is the most effectively. For each project the Israel government gives not more than 85% of needed investment (up to $350,000 and additionally up to $50,000 for marketing – during 2 years) for 20% of shares and the investor gives only 15% of needed investment ( ~ $60,000) for also 20% of shares. In the case if the project has shown the planned good technical result and proved risibility at the nearest time, the investor can buy even 30,1% of shares for $90,000. In this case total investment during 2 years is S$1,520,000. For 50,1% of shares after opening a start-up companies (also with 50-63% possible government incentive) of selling projects to another companies the forecasted profit for only four successful projects can be $5400,000. It follows that real net profit will consist:
$3,560,800
THEGROUP WILL REALISE INTERACTION BETWEEN THE FOREIGN PARTNER THE AUTHORS OF TECHNOLOGICAL PROJECT AND THE STATE ORGANIZATION OF ISRAEL. THE MAIN TASK OF THIS GROUP MUST BE THE ORGANIZATION OF MARKETING IN ALL THE COUNTRIES (TOGETHER WITH THE INVESTED COMPANY) AND SUPERINTENDENCE DURING R & D STAGES OF PROJECTS.