Israel Innovation Authority launches fund to develop human capital for high-tech sector
The fund will provide grants to broaden recruitment and to expand workforce skilled in R&D
Cybertech
| 12/08/2020
CEO Aharon Aharon. Photo: Israel Innovation Authority
The Israel Innovation Authority (IIA) announced Tuesday that it is launching a new fund to develop human capital in the high-tech industry, with a focus on current challenges.
The Human Capital Development Fund will support up to 70% of projects’ cost, with a total budget of 20 million NIS for the first year of operation.
The fund, whose scope was defined together with the labor division of the Ministry of Labor, Social Affairs and Social Services, will provide grants for new programs and models to broaden recruitment for the high-tech industry and to bolster human capital skilled in R&D.
Aharon Aharon, CEO of IIA, said "This period, in which hundreds of thousands of Israelis have found themselves unemployed, also provides an opportunity for the Israeli economy to retrain a portion of them for R&D positions in the high-tech industry. This new fund will integrate re-skilling for those with significant potential to contribute to the high-tech industry – with a focus on training job seekers for R&D positions – and up-skilling for current employees in this industry, who will receive specialized training, which would offer added value to companies."
"The demand for high quality, skilled human capital continues to be a significant challenge for the Israeli high-tech industry’s efforts to innovate and maintain its competitive leadership position in the global market. In order to provide an appropriate response to today’s challenges as well as an incentive for corporations and non-profits to implement solutions for training human capital in the knowledge industries, the Israel Innovation Authority Council approved the establishment of this fund to stimulate human capital development in high-tech."
The launch of the new fund is seen as representing a strategic paradigm shift by the IIA in its efforts to maximize its holistic response to these ongoing challenges. Its incentive track seeks to broaden the range of innovative solutions for human capital development in the field, in conjunction with the high-tech industry and other stakeholders, in order to create an infrastructure for developing high-quality human resources in Israel. A skilled workforce is a key prerequisite for developing well-rounded companies and for maintaining Israel’s high-tech industry as a growth engine for the economy as a whole.
The Innovation Authority's program will offer grants to programs providing solutions to the following challenges: broadening recruitment for the Israeli high-tech industry by improving R&D skills in the workforce; and improving the quality of employees in R&D and retaining skilled human capital in the high-tech industry.
The incentive track will operate in a manner similar to the R&D Fund track, supporting diverse projects related to human capital development such as those aimed at professional training, specialization, recruitment, professional development, and locating potential. Proposals will be reviewed according to their ability to define challenges rather than solutions, and will be assessed via clear benchmarks, such as the recruitment of highly-paid, skilled human resources into the industry, innovation level, cost/benefit, and ability to recruit partners.
The incentive track will support both social and commercial projects, including the creation of new models or the expansion of existing projects, whose goal is to alleviate the shortage of human capital, while expanding the number of players in this field and improving the quality of available solutions.
In addition, this track will put an emphasis on inclusiveness: demographics currently under-represented in the high-tech industry – women, the Arab sector, the ultra-Orthodox sector, citizens of Ethiopian descent, those with disabilities – as well as activities located in the periphery.
The fund's first call for proposals will be open for submissions from August to October 2020, and will focus on the following areas:
A program to locate high-potential employees and offer re-skilling, training, on-the-job training, specialization and placement, with a focus on the following demographics:
- Those with high potential adversely affected by the economic crisis.
- Sectors currently under-represented in the high-tech industry: women, the ultra-Orthodox sector, the Arab sector and other minorities, citizens of Ethiopian descent, those with disabilities, and residents of the periphery (with an emphasis on college graduates).
- New immigrants and returning citizens with background and experience in R&D positions
This track will provide two types of grants:
1. Grants for programs costing up to 1 million NIS – (programs in early / ideation stage) The Innovation Authority will contribute towards financing approved programs through a grant worth 50%, 60% or 70% of the approved budget.
2. Grants for programs costing 1 - 15 million NIS – (programs in growth / scale-up stage) The Innovation Authority will contribute towards financing approved programs through a grant equal to 30%, 40% or 50% of the approved budget – according to the Israel Innovation Authority Council’s decision. In special cases where the Research Committee believes that the program is exceptionally innovative and unique, it may approve a grant of up to 70% of the approved budget.
The fund will provide grants to broaden recruitment and to expand workforce skilled in R&D
CEO Aharon Aharon. Photo: Israel Innovation Authority
The Israel Innovation Authority (IIA) announced Tuesday that it is launching a new fund to develop human capital in the high-tech industry, with a focus on current challenges.
The Human Capital Development Fund will support up to 70% of projects’ cost, with a total budget of 20 million NIS for the first year of operation.
The fund, whose scope was defined together with the labor division of the Ministry of Labor, Social Affairs and Social Services, will provide grants for new programs and models to broaden recruitment for the high-tech industry and to bolster human capital skilled in R&D.
Aharon Aharon, CEO of IIA, said "This period, in which hundreds of thousands of Israelis have found themselves unemployed, also provides an opportunity for the Israeli economy to retrain a portion of them for R&D positions in the high-tech industry. This new fund will integrate re-skilling for those with significant potential to contribute to the high-tech industry – with a focus on training job seekers for R&D positions – and up-skilling for current employees in this industry, who will receive specialized training, which would offer added value to companies."
"The demand for high quality, skilled human capital continues to be a significant challenge for the Israeli high-tech industry’s efforts to innovate and maintain its competitive leadership position in the global market. In order to provide an appropriate response to today’s challenges as well as an incentive for corporations and non-profits to implement solutions for training human capital in the knowledge industries, the Israel Innovation Authority Council approved the establishment of this fund to stimulate human capital development in high-tech."
The launch of the new fund is seen as representing a strategic paradigm shift by the IIA in its efforts to maximize its holistic response to these ongoing challenges. Its incentive track seeks to broaden the range of innovative solutions for human capital development in the field, in conjunction with the high-tech industry and other stakeholders, in order to create an infrastructure for developing high-quality human resources in Israel. A skilled workforce is a key prerequisite for developing well-rounded companies and for maintaining Israel’s high-tech industry as a growth engine for the economy as a whole.
The Innovation Authority's program will offer grants to programs providing solutions to the following challenges: broadening recruitment for the Israeli high-tech industry by improving R&D skills in the workforce; and improving the quality of employees in R&D and retaining skilled human capital in the high-tech industry.
The incentive track will operate in a manner similar to the R&D Fund track, supporting diverse projects related to human capital development such as those aimed at professional training, specialization, recruitment, professional development, and locating potential. Proposals will be reviewed according to their ability to define challenges rather than solutions, and will be assessed via clear benchmarks, such as the recruitment of highly-paid, skilled human resources into the industry, innovation level, cost/benefit, and ability to recruit partners.
The incentive track will support both social and commercial projects, including the creation of new models or the expansion of existing projects, whose goal is to alleviate the shortage of human capital, while expanding the number of players in this field and improving the quality of available solutions.
In addition, this track will put an emphasis on inclusiveness: demographics currently under-represented in the high-tech industry – women, the Arab sector, the ultra-Orthodox sector, citizens of Ethiopian descent, those with disabilities – as well as activities located in the periphery.
The fund's first call for proposals will be open for submissions from August to October 2020, and will focus on the following areas:
A program to locate high-potential employees and offer re-skilling, training, on-the-job training, specialization and placement, with a focus on the following demographics:
- Those with high potential adversely affected by the economic crisis.
- Sectors currently under-represented in the high-tech industry: women, the ultra-Orthodox sector, the Arab sector and other minorities, citizens of Ethiopian descent, those with disabilities, and residents of the periphery (with an emphasis on college graduates).
- New immigrants and returning citizens with background and experience in R&D positions
This track will provide two types of grants:
1. Grants for programs costing up to 1 million NIS – (programs in early / ideation stage) The Innovation Authority will contribute towards financing approved programs through a grant worth 50%, 60% or 70% of the approved budget.
2. Grants for programs costing 1 - 15 million NIS – (programs in growth / scale-up stage) The Innovation Authority will contribute towards financing approved programs through a grant equal to 30%, 40% or 50% of the approved budget – according to the Israel Innovation Authority Council’s decision. In special cases where the Research Committee believes that the program is exceptionally innovative and unique, it may approve a grant of up to 70% of the approved budget.
