Technological IncubatorsTechnological Incubators

Sharing the Israeli Experience

By Rina Pridor

Founder & former General Director

May 2011

Sharing the Israeli Experience

By Rina Pridor

Founder & former General Director

May 2011

Incubator ? • A special environment for the creation or

development of a fragile, premature creature, helping it to mature enough to survive and become strong and healthy.

*Incubators for pre-mature babies, eggs or chicks

*Green Houses for plants *Business Incubators

• A special environment for the creation or

development of a fragile, premature creature, helping it to mature enough to survive and become strong and healthy.

*Incubators for pre-mature babies, eggs or chicks

*Green Houses for plants *Business Incubators

The Israeli Incubators Program

• Established in 1991• A Governmental initiative• Adjusting an existing concept to

local needs• Taking advantage of local

capabilities

• Established in 1991• A Governmental initiative• Adjusting an existing concept to

local needs• Taking advantage of local

capabilities

*One of a variety of

governmental programs

complementing each other.

*Aiming at the development of

a Technology based Industry.*One of a variety of

governmental programs

complementing each other.

*Aiming at the development of

a Technology based Industry.

Israeli Characteristics

* Technology, * Innovation, * Research & Development,*Preliminary phase, *Fully financed by Incubator,*$ 500,000 to $ 750,000, * 85% Government - 15% Privet*Limited incubation term: 2 to 3 Years

Israeli Characteristicscont.

*Incubator’s involvement, discipline responsibility

*Incentives to Incubators’ owners for investing financial & strategic resources In the projects*The Government Is not a business partner.*Long run vision, patience.*Accepting failure

Additional goalsAdditional goals • Entrepreneurial culture• New Technologies• Strengthening weak regions and communities• Encouraging preferred technologies• Repatriation of professionals• Collaboration between Academia and Industry

Government Investments VS. Private Funds Raised in Incubator Companies

1991 - 2008

0

250,000

500,000

750,000

1,000,000

1,250,000

1,500,000

1,750,000

2,000,000

2,250,000

2,500,000

2,750,000

Thousand Dollars

Cumulative Government Invesments 5,100 21,600 44,980 68,560 99,560 130,660 162,160 192,760 222,591 254,158 286,308 313,440 339,460 364,673 396,126 428,915 461,760 509,389

Cumulative Private Funds 0 100 7,950 19,045 52,026 90,580 152,652 248,390 333,921 637,635 757,080 842,126 922,824 1,115,355 1,294,832 1,723,916 2,162,940 2,509,667

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008