The Israeli National Authority for Technological Innovation (known in short as the Israeli Innovation Authority or IIA) is the long arm of the Israeli government that supports and funds Israeli start-up companies, assists academia to commercialize new technologies and encourages foreign multinational corporations to invest in Israeli technology. The IIA is a significant driver of the Israeli technology innovation ecosystem.
The IIA imposes conditions on companies that have received its support, and these may apply not only during the course of funding but also in future commercial relationships, which brings in the need for specialized advice.
A foreign multinational corporation, for example, may be acquiring an Israeli company previously supported by the IIA and that acquisition will be impacted by IIA rules.
We are an acknowledged market leader in this field providing advice and guidance on:
- Export restrictions imposed by the IIA on intellectual property and know-how.
- Reporting obligations under the IIA regime including allowable expenses.
- M&A, equity and debt financings for strategic acquisitions and collaborations between IIA-companies and non-Israeli companies.
- Ownership and licensing of intellectual property and manufacturing rights, including the formation of joint ventures .
- Regulatory and compliance matters imposed by the IIA on target companies.
- Royalty payment obligations.
- Strategic advice on how to best structure transactions that are subject to IIA restrictions.
With over two decades of experience of advising on IIA matters, we are not only retained as expert counsel to clients but also work closely with the IIA itself to provide advice on the development of future legal frameworks and regulation.
The IIA technology incubator and open innovation lab programs
The IIA periodically offers concessions for which consortia of investors are invited to tender to run a particular incubator or innovation lab program. The winning consortium will negotiate commercial investments in start-ups which can provide solutions through the program and receives grant funding from the IIA to match the investment it is making.
The incubators focus on different high-tech sectors decided upon by such consortia such as agrotech, bioconvergence, fintech, life sciences and artificial intelligence.
We have assisted clients to win over 60% of recent tenders offered by the government and represent roughly half of the consortia operating under such tenders through the following.
- We help form consortia to bid for the concessions. With over twenty years’ experience working with the IIA, we not only understand the legalities behind the process but also what the IIA is looking for in a concession partner. We assist as strategic advisers to bring the right partners together to win the right project.
- We guide your consortium through and beyond the concession process. Our role is to guide you from the first stages of formation through to having an investment portfolio by:
- Helping to negotiate the terms between consortium partners.
- Assisting with the application for the tender and developing the case for why the IIA would choose you.
- Advising on the activation of the incubator and creating the investment vehicles.
- Contemplating, together with you, as to your “investment DNA” and how best to make investments under the umbrella of the IIA going forward.
- We ensure that your investment companies comply with all IIA requirements. As portfolio companies grow and expand, they may require further investment or want to manufacture outside Israel or enter a joint venture or be acquired. As demonstrated earlier, our team has the specialist experience to assist and ensure compliance with all requirements of the IIA.
Sectors where we have worked with consortia and portfolio companies include:
- Food-Tech. We have worked with Israel’s two largest food manufacturers as consortium founders.
- Environmental & Sustainability. Representing a consortium including France’s largest utility company and a global UK-headquartered chemical and industrial business.
- Healthcare. Acting for NGT3 – an Israeli-Arab incubator in Medical Devices and for a consortium led by one of the world’s largest technology and consulting companies.
- Media & Internet. Advising global private equity houses as investors and representing a consortium including the world’s best-known market research company.
- Infrastructure & Automotive. Representing leading European infrastructure and car manufacturers.
- Fintech & FinSec. Advising one of the world’s largest payment-processing companies.
- Canna-Tech. Assisting investors and start-ups on technology for cannabis-related technologies.
For further information, please contact Stephen Barak Rozen.