Monday Dec 10, 2007

Ready for a raise: Israel's Chief Scientist's Office

Posted by David Anthony

The Chief Scientist's Office (OCS) has been fostering a lifeline for Israel's hi-tech sector since 1984*. Through grants and loans, the OCS has been delivering critical seed funds to select Israeli R&D companies; allocating more than NIS 1.2 billion in 2006 alone. They provide the much-needed early money for cutting-edge scientific advancements; yet their budget has been declining by roughly 10-15% annually over the past few years. Rather than shrinking the OCS allotment, the Finance Ministry should explore expanding the regular OCS budget. Here are a few reasons why:

Every shekel that is spent by the Chief Scientist's Office resurfaces within the Israeli economy several times over - sometimes even directly back into the Finance Ministry's coffers. As the grant-awarded new technologies begin generating earnings, these grants are converted into low-interest loans which are paid back through royalties arrangements. The government begins to recoup its money (plus interest) once the technology becomes successful. Typically about 30-40% of the OCS annual budget is from recurring royalty payments of years past.

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