1. ABOUT THE PROGRAMME

I4F is a cooperation between the Department of Science and Technology (DST), Government of India, and the Israel Innovation Authority (IIA), Government of Israel established in 2018 to promote, facilitate and support joint industrial R&D between companies from India and Israel.

In India, on behalf of DST, funding and other services will be provided through Technology Development Board (TDB) and in Israel, funding and other services will be provided through Israel Innovation Authority.

Applicants are required to review the complete application guidelines before developing and submitting a complete proposal.

Please note that the proposal preparation guidelines should be seen as suggestions which will be helpful to applicants in preparing a proposal that addresses the issues on which the evaluation will be based. Applicants can choose to address the suggestions that they believe will strengthen their proposal.

2. ABOUT FUNDING & IMPLEMENTING AGENCIES

Department of Science & Technology (DST)

The Department of Science & Technology (DST) was established in May 1971, with the objective of promoting new areas of Science & Technology and to play the role of a nodal department for organising, coordinating and promoting S&T activities in the country. The Department of Science & Technology (DST), Government of India has an important role in building a strong base for Research, Development and Demonstration in India and in addressing national concerns about strengthening science and technology. DST, as a national agency for strengthening the base of Science and Technology in the country has made sincere attempt to address national concerns of India in basic research.

For more information about DST, please visit www.dst.gov.in

Technology Development Board (TDB)

Technology Development Board (TDB) is a statutory body of Department of Science & Technology (DST). As part of National Technology Day celebration on 11th May every year, TDB present National Awards to industrial concerns for successful commercialization of indigenous technology. The second category of award was introduced for the first time in 2000 for SSI units which has been renamed as MSME Award. From 2017 onwards, a new category of award called ‘National Award for Start-Up’ has been introduced to encourage & promote technologies developed by start-ups having potential for commercialization.

Israel Innovation Authority

The Israel Innovation Authority, responsible for the country’s innovation policy, is an independent and impartial statutory public entity that operates for the benefit of the Israeli innovation ecosystem and Israeli economy as a whole. Its mission is to invest in innovation in order to promote sustainable and inclusive growth.

The Authority functions as an enabler with all things related to the Israeli innovation ecosystem. It provides conditional grants to support disruptive technological innovations as well as engaged in creating the groundwork and infrastructure to prepare for future technologies in order to maintain both technological and economical leadership as well as improve productivity and global competitiveness of the Israeli economy.

India-Israel Industrial R&D and Technological Innovation Fund (I4F)

Call for Proposals – Terms, Conditions & Guidelines for Applications

3. I4F PROGRAMS

3.1. OUTLINE

3.2. FEASIBILITY STUDY PROJECTS

Two companies (one from India and one from Israel) considering an R&D partnership may decide to perform preliminary investigations in order to determine the technical feasibility or market acceptability

India-Israel Industrial R&D and Technological Innovation Fund (I4F)

Call for Proposals – Terms, Conditions & Guidelines for Applications

of a new product, technology concept, etc., before committing to a full R&D/Strategic project of much higher cost and longer duration. In such cases, I4F may contribute to a maximum of USD 100,000 or 50% of the total project cost (70% for startups less than 5 years-old), whichever is lower, as a full (non-conditional) grant. Maximum duration of such project is nine months.

Such grants are awarded with the understanding that a follow-up I4F R&D or Strategic Program proposal will be submitted by the companies, should the feasibility results prove positive.

Applications for Feasibility Study Projects are open twice a year. The exact dates will be published on the I4F website and on the Israel Innovation Authority’s and TDB’s websites respectively.

3.4. PILOT PROJECTS

The purpose of the I4F Pilot Program is to meet post-R&D gaps by supporting scale-up, pilot testing and commercialization of near-market technologies (e.g., TRL 6-8) by two or more companies through joint piloting or testing of the product with specific customers or global market. The maximum duration of such project is one year. I4F grants contribute to a maximum of USD 1,000,000 or 50% of the total project cost (70% for start-ups less than 5 years-old), whichever is lower.

Applications for Pilot Projects are open twice a year. The exact dates will be published on the I4F website and on the Israel Innovation Authority’s and TDB’s websites respectively.

3.5. STRATEGIC PROJECTS

The I4F Strategic Program aims to achieve a technological breakthrough and promote intensive financial support for strategic sectors of India and Israel. I4F annually publishes a Call for Proposals for its Strategic Program with a specific industry/technology field, decided by the Governing Board of I4F. The project should be undertaken by private companies in India and Israel, with the mandatory participation of academia/research institutes as sub-contractors. The maximum duration of such project is three years. I4F grants contribute to a maximum of USD 5,000,000 or 66% of the total project cost, whichever is lower (up to USD 2,000,000 per year, per project).

Applications for Strategic Projects are open once a year. The exact dates and focus sector will be published on the I4F website and on the Israel Innovation Authority’s and TDB’s websites respectively.

4. ELIGIBLE TECHNOLOGY SECTORS

The collaboration aims to promote projects that are innovative and reflecting consumer demands, so that they are market-oriented at the same time focussed on creating a new product or process that will eventually lead to commercialization.

India-Israel Industrial R&D and Technological Innovation Fund (I4F)

Call for Proposals – Terms, Conditions & Guidelines for Applications

On this basis, Feasibility Study, R&D and Pilot Projects might be submitted in all areas except defence. Strategic Projects should be submitted according to the focus sector selected by the Governing Board of I4F, as published in the annual Call for Proposals.

5. ELIGIBILITY CRITERIA

At least two companies undertaking science & technology, jointly from both the countries should express a desire to cooperate in the research and development or piloting of a new product or a new process.

Each proposal must include as a minimum:

1. A for profit R&D performing Indian company registered under the Indian Company Act 1956/2013 as Indian Project Lead (INPL), responsible for the Indian application submission, leading the Indian part of the project and communicating with the Israeli Project Lead and
2. An Israeli for profit R&D performing company, which is registered, operates in Israel as Israeli Project Lead (ISPL), responsible for the Israel application submission, leading the Israeli side of the project and communicating with the Indian Project Lead.

Important Notes:

Applicants from Israel

Applicants from India
An Indian company headquartered in India having requisite understanding and capability to undertake R&D activities. Academic institutions, Research entities and other R&D institutes having headquarter and operational base in India are strongly encouraged to participate in the projects as Intellectual Contractors/Partners with INPL (as appropriate/agreed with INPL.)

The Indian Project Lead (INPL) (i.e. lead company) must be a commercial (for profit) company under the Indian Company Act 1956/2013, which operates in and is headquartered in India.

Preferences will be given to:

India-Israel Industrial R&D and Technological Innovation Fund (I4F)

Call for Proposals – Terms, Conditions & Guidelines for Applications

6. SELECTION CRITERIA

When evaluating projects, TDB and the Israel Innovation Authority will take into consideration the following criteria in preparing their recommendations:

Any team proposing a Feasibility/R&D/Pilot/Strategic project that addresses the above criteria is eligible to apply to I4F in accordance with the national laws, rules regulations and procedures of their respective country.

7. PROJECT FUNDING – FINANCIAL SUPPORT TO SUCCESSFUL APPLICANTS

Selected project participants will receive funding from TDB, on behalf of Department of Science & Technology (DST), Government of India, in India and from Israel Innovation Authority in Israel respectively. Funds will be provided in accordance with the national laws, rules, regulations and procedures established by each organization, and/or each jurisdiction/country.

Although the individual type and value of individual contributions allocated to India-Israel project may vary, each bilateral project must highlight the total contribution from each participating country. Total

India-Israel Industrial R&D and Technological Innovation Fund (I4F)

Call for Proposals – Terms, Conditions & Guidelines for Applications

contribution may be defined as the combined value of cash, human resource effort, services and/or equipment that each country invests in an R&D project.

Funding for Project Participants in India

TDB on behalf of the Department of Science & Technology (DST), Government of India, will fund the successful projects, as follows:

DST-TDB will support:

DST through TDB shall provide the funding in the following proportion to the Indian Applicants. These are indicative figures and are subject to change depending on the type of Project and recommendation by the Joint Project Evaluation Committee:

1. Equipment 40%
2. Manpower 30%
3. Consumables 20%
4. Travel/Others 10%
5. Joint Commercialisation cost (USD 30,000) (not applicable to feasibility projects) INPL and ISPL shall each be eligible for Joint Commercialization cost up to USD 30,000 per project based on the matching fund from Industry. This cost needs to be reflected in the budget sheet.

Indian applicants will be required to open a separate No-Lien bank account for managing the project funding.

Funding for R&D Project Participants in Israel

Israel Innovation Authority will support:

8. APPLICATION PROCESS

India-Israel Industrial R&D and Technological Innovation Fund (I4F)

Call for Proposals – Terms, Conditions & Guidelines for Application

The I4F common applications are to be submitted following these criteria and in accordance with the national laws, rules, regulations and procedures in effect:

1. At least two science and technology companies from the respective countries should express a desire to cooperate in the research and development or piloting of a new product or a new process.
2. The project may involve more than one company from each side; academic/research entities are eligible to join as sub-contractors or as part of a bi-lateral Indo-Israeli consortium.
3. The product should be technologically innovative and should have commercial potential. The joint project should aim at the development of products/processes leading to commercialization in the global market.
4. The project partners should agree in advance on the IP rights and on the commercialization strategy of the product or process.
5. The project should demonstrate the contribution of the participants from both countries.
6. The project must be balanced between participants and significant to both partners (no less than 40%-60%)
7. The project timeframe is limited to 9 (nine) months for Feasibility Study Projects, 2 (two) years for R&D Projects, 1 (one) year for Pilot Projects and 3 (three) years for Strategic Projects.
8. Business partners (Israel and India) must incur a minimum of 50% of the total project costs for Feasibility Study/R&D/Pilot Projects (30% for start-ups less than 5 years-old), and a minimum of 34% of the total project costs for Strategic Projects.

Applications meeting all basic criteria of the CFP are invited to submit full project proposals using the I4F common forms to both Implementing Organizations simultaneously within the deadline of the particular CFP’s period. The proposal’s application must be signed following the CFP instructions.

The Israeli partner is required to submit I4F application forms in accordance with the Israel Innovation Authority regulations, through the official Israel Innovation Authority website’s online system.

The Indian partner is required to submit I4F application forms to DST/TDB website’s through an online system at https://www.tdb.gov.in

For more information the companies could visit I4F website https://i4f.org/

Only online mode of submission will be accepted.

India-Israel Industrial R&D and Technological Innovation Fund (I4F)

Call for Proposals – Terms, Conditions & Guidelines for Applications

10. PROJECT COST GUIDELINES

I4F funding is designed to support the company’s development cost up to the point of product commercial readiness. Eligible project costs are costs directly related to the project which will be incurred by the applicant company during the development phase.

I4F does not recognize project costs which are incurred before the official project start date. The start date for projects supported under all I4F calls for proposals from will be determined by the date requested by the companies in the application form submitted but no earlier than the date of approval by Governing Board.

Each applicant company is required to complete its respective proposed project budget form. The proposed project budgets will be qualified for evaluation. Project costs that I4F will consider to be eligible for cost sharing are: direct manpower excluding top-level management who are not directly involved in activities related to this project, consumable materials, equipment, consulting services, subcontractors, project associated travel (domestic and international), outlays to meet regulatory requirements, IPR filing, and other expenses that are directly related to the joint project. I4F recognizes the procurement, usage and depreciation costs according to the rules and regulations of each funding entity.

9. MATCHMAKING SUPPORT

I4F has developed a web platform for online Matchmaking process to enable applicants to find a suitable project partner

Please visit the page https://i4f.org/

10. PROJECT COST GUIDELINES

I4F funding is designed to support the company’s development cost up to the point of product commercial readiness. Eligible project costs are costs directly related to the project which will be incurred by the applicant company during the development phase.

I4F does not recognize project costs which are incurred before the official project start date. The start date for projects supported under all I4F calls for proposals from will be determined by the date requested by the companies in the application form submitted but no earlier than the date of approval by Governing Board.

Each applicant company is required to complete its respective proposed project budget form. The proposed project budgets will be qualified for evaluation. Project costs that I4F will consider to be eligible for cost sharing are: direct manpower excluding top-level management who are not directly involved in activities related to this project, consumable materials, equipment, consulting services, subcontractors, project associated travel (domestic and international), outlays to meet regulatory requirements, IPR filing, and other expenses that are directly related to the joint project. I4F recognizes the procurement, usage and depreciation costs according to the rules and regulations of each funding entity.

Exchange Rates

Disbursements will be in local currencies. The applicant company is required to present its proposed project budget in local currency, i.e. Indian Rupee (INR) for the Indian company or Israeli New Shekel (ILS) for the Israeli company, AND in US dollars (USD).

For currencies conversion, both project partners are to use the same source for the exchange rate, i.e. OANDA or XE.

Use the same date of exchange rate, e.g. use exchange rate on 1 Jan 2024 for INR to USD conversion and ILS to USD conversion. The date to be used may be up to 1 month prior to the signed proposal submission date.

Cost Categories (categories I. to VII. are related to R&D costs)

I) DIRECT LABOR

Definitions of Eligible Direct Labor

Permanent/Contractual personnel directly related and relevant to the project that are based in India for the Indian company, and based in Israel for the Israeli company. The R&D personnel may be directly employed or on contract and receive the compensation from the

India-Israel Industrial R&D and Technological Innovation Fund (I4F)

Call for Proposals – Terms, Conditions & Guidelines for Applications

applicant company. The R&D personnel should hold relevant technical qualification and experience.

Conditions

The rules of salary expenses, including overhead and administrative expenses, will apply according to the accepted practice in each country

Not Supported as Direct Labor

Temporary R&D personnel (to be classified under V. Subcontractors & Consultants), R&D personnel who are employed and paid by a related company, subsidiary, overseas branch, 3 rd party, etc.

II) EQUIPMENT / SOFTWARE DEPRECIATION

Definitions of Eligible Equipment / Software Depreciation

The usage cost in value of the new equipment or software deployed during the project and the purchase of equipment/software which are required for and relevant to the project shall be supported according to DST/TDB and Israel Innovation Authority policies.

Not Supported as Depreciation Cost

Miscellaneous cost such as VAT/GST, bank charges, shipping, delivery, setting up, servicing, etc

Full purchase cost of equipment and software

III) EXPENDABLE MATERIALS & SUPPLIES

Definition of Eligible Expendable Materials & Supplies

Off the shelf consumables which are used during the Project and are not reusable.

Items which require to be custom-made by 3rd parties if required for the project.

Condition

The applicant company supplying consumables to its Project’s partner during the Project should not charge the consumables cost to the partner’s proposed project budget. The applicant company should include such cost in its own proposed Project budget

Not Supported as Expendable Materials & Supplies Cost

Office supplies, rental, utilities, etc.

Miscellaneous cost such as VAT/GST, bank charges, shipping, delivery, etc.

IV) TRAVEL

Definitions of Eligible Travel Cost

Cost incurred during trips between India, Israel and any other country that the project requires as well as internal travel cost in these countries

India-Israel Industrial R&D and Technological Innovation Fund (I4F)

Call for Proposals – Terms, Conditions & Guidelines for Applications

Conditions

Only economy class travel (tickets) are eligible for reimbursement.

Only trips made by R&D personnel listed in the approved project budget are recognized

Trips should be of R&D nature and directly related to the project

The applicant company’s R&D personnel, who travel to the project partner’s country, should not charge their travel costs to the partner’s proposed project budget. The applicant company should include such costs in its own proposed project budget

Not Supported as Travel Cost

Passport and visa application, travel insurance, etc.

Trips to countries other than India and Israel.

V) SUBCONTRACTORS & CONSULTANTS

Definition of Eligible Subcontractors & Consultants

3 rd parties which are engaged by the applicant company to assist in the engineering and technical aspect of the project Consultants who are engaged by the applicant company to develop a marketing/commercialization plan

Conditions

I 4F will qualify the applicant company’s proposed project budget. The total outsourcing cost is recognized at maximum 30% of the qualified cost before I 4F includes the additional overhead and general & admin costs.

The applicant company’s contractual agreement with the subcontractors or consultants shall be submitted to I 4F upon request. The contractual agreement must comply with these Guidelines and in particular the provisions of the IPR Annex

The applicant company engaging its related company or subsidiary as subcontractor or consultant shall be charged at cost

The applicant company does not possess the expertise of the subcontractor or consultant. Legal consultation related to the project, other than the dispute or arbitration.

Not Supported as Subcontractors & Consultants

3 rd parties which are engaged to carry out mass production, business/legal consultation, etc.

The applicant company’s project partner

VI) CERTIFICATIONS

Definition of Eligible Certifications

Regulatory activities and standards certifications related to the project which are mandatory before the proposed product or technology can be commercialized

Supported as Certifications Cost

India-Israel Industrial R&D and Technological Innovation Fund (I4F)

Call for Proposals – Terms, Conditions & Guidelines for Applications

Patent applications

Not Supported as Certifications Cost

Tests done by 3rd parties which are not mandatory for the commercialization of the proposed product or technology (to be classified under V. Subcontractors & Consultants)

VII) JOINT COMMERCIALIZATION

Definition of Eligible Joint Commercialization Cost (not applicable to Feasibility Studies)

Any further certifications or testing required for commercialization based on a detailed report.

Joint participation in trade exhibitions, joint presentation at conferences, joint marketing collaterals and joint road shows in Israel/India or other third countries

Examples of joint commercialization costs: Rental of exhibition booth space, conference registration fee, printing of brochures/posters, travel cost related to joint commercialization activities.

Conditions

The allocation of USD 30,000 for joint commercialization activities can be broadly detailed in the initial budget annex submitted with the application. However, in cases where the utilization of the USD 30,000 is not detailed in the initial budget, it may be submitted during the project itself as long as it is submitted to fund managers 2 months prior to the activity itself. Utilization of joint commercialisation budget is subject to approval of I4F Co-Managers. Changes in commercialization budget allocations can also be made via change form subject to approval.

Both the applicant company and its Project partner must share the commercialization cost, hence, the commercialization cost must be included in both companies’ budget forms

Note: please refer to Annexure 1: General Guidelines on IPR and Commercialisation along with this document for details.

Not Supported as Joint Commercialization Cost

Commercialization activities which are not carried out jointly by the applicant company and its project partner

Commercialization activities which are not related to the proposed product or technology

11. EVALUATION AND SELECTION OF PROJECTS

12. RELEASE OF FUNDS AND ROYALTY PAYMENT

I4F will cost-share the joint R&D/Pilot/Strategic Projects by supporting approved Applicants through a conditional grant as determined by the Governing Board. Grants awarded to Feasibility Study Projects will be non-conditional (pure grants that will not require repayment by the companies).

Each Project Applicant directly receives the portion of the total grant that is relative to its share in the budget.

The Funds granted shall be disbursed in combination of advance and reimbursement for the cost already incurred on proportionate basis to the Indian and Israeli Project Applicants, and the Consortium Partners, if any, at periodic intervals (35% as advance payment and a quarterly payment starting from 6 months after the Project’s starting date on submission of requisite documents).

Repayment of Conditional Grant – Repayment of Conditional Grant will be based on the total incomes resulting from the Product developed in the joint project, at a rate of no less than 2% and no more than 5% per year, until the conditional grant is fully repaid. The Indian Project Partners/ Consortium will repay I4F via TDB, on behalf of DST, while the Israeli Project Partners/ Consortium will repay I4F via the Israel Innovation Authority. The period of the recovery of the grant amount will be maximum of fifteen (15) years from the date of release the first instalment or else ten (10) years post commercialization, whichever is less.

13. COMMERCIALIZATION

The cooling period will be 2 (two) years, subject to maximum of 5 (five) years from the date of release of first installment.

India-Israel Industrial R&D and Technological Innovation Fund (I4F)

Call for Proposals – Terms, Conditions & Guidelines for Applications

14. TERMINATION OF CONDITIONAL GRANT AGREEMENT

In case any of the companies (from either side) shall decide to terminate the project before completion, the following process should be initiated:

1) Company should notify TDB & the Israel Innovation Authority in writing (digitally), with a copy to the project partner, of their wish to terminate the project with a detailed explanation for the termination request.

2) A mutual call between TDB, the Israel Innovation Authority and the project partners shall be initiated in order to better understand the status of the project and partnership. Alternatively, TDB & the Israel Innovation Authority shall individually speak with the companies separately and provide a summary of the conversation to each other.

3) An official mutual letter from TDB and the Israel Innovation Authority shall be sent within 14 days from the notification date to the project partners requesting them to submit a mutual termination agreement signed by both project partners within 3 (three) months. This is a letter outlining both sides readiness to forego the project, understanding the terms under which they are severing ties.

4) Simultaneously, a technical and financial evaluation of both partners shall be initiated by TDB & the Israel Innovation Authority within 14 days from the notification date in order to understand what amount of R&D was successfully completed, whether the funds received were used appropriately, whether the project partners worked together in an efficient manner, and whether the termination request is legitimate. This evaluation should be completed within 3 (three) months.

5) Only once the evaluation is completed and the required documents are received, recommendations from TDB & the Israel Innovation Authority shall be presented to Joint Committee for final project closure decision. The decision of refund or waiver of fund already disbursed to the companies will be taken finally by I4F Governing Board.

15. KEY DOCUMENTS NEEDED

For Indian Applicants: