The Socio-Economic Cabinet authorized Minister of Economy Naftali Bennett’s and Minister of Finance Yair Lapids’ proposal to establish a National Authority for Technology & Innovation which will function as the executive arm of the Office of the Chief Scientist in the Ministry of Economy. A proposal to establish the authority will be discussed in the coming session of the Socio-Economic Cabinet.

The authority will enjoy wide-scale professional capabilities and a high degree of flexibility to increase initiative as well as a variety of management tools to promote technological innovation more efficiently in industry, in accordance with the market. Its goals also include encouraging growth, increasing production and advancing technological innovation in Israeli industry.

The decision to establish the National Authority for Technological Innovation followed intensive study. The appropriate use of tools available to industry can increase growth, create more jobs in hi-tech and innovation, increase production in traditional industries and more.

Establishing the authority strengthens the government’s long-term goals for the hi-tech industry, thereby bolstering Israel’s position as a world leader in the face of increasing competition, while connecting other large segments of the economy to this engine of growth.

The government’s policy of innovation aims at achieving significant goals in the coming decade, including: encouraging growth of companies in the industry; jumpstarting technological innovation in traditional fields which are not normally R&D-based; strengthening infrastructure of capital; research and human resources; harnessing innovation to improve the public sector; and increasing the participation in the hi-tech workforce of sectors which are underrepresented in that field.

Innovation has become the main engine of growth of the Israeli market in recent decades and a source of national pride. In light of this, structural changes to the Office of the Chief Scientist will enable the hi-tech industry to improve its capabilities. These changes will allow the government to continuously direct policy.

Minister of Economy Naftali Bennett stated “The Socio-Economic Cabinet’s decision is tremendous news. The reform is a revolution in the Office of the Chief Scientist after twenty years. It will streamline procedures and provide a toolbox to increase Israeli innovation and subsequently, growth in the economy. Together with the Angels Law, this reform will greatly energize the Israeli hi-tech market.”

Minister of Finance Yair Lapid addd “Israel is the Start-Up Nation. It is our job to ensure that Israel continues to stand at the forefront of the international stage and to fuel this engine of innovation as the engine of growth in the Israeli economy. Our goal is not to increase the tax burden on citizens, but rather to generate catalysts of growth, one of which is the National Authority for Technological Innovation.”

Director-General of the Economy Ministry Amit Lang also commented, stating “The cabinet made a brave and visionary decision today that will ensure Israel remains at the forefront of global innovation. This reform requires the government to make even greater efforts to train personnel to be ready for the challenges we will have to face in the coming years. The unique structure of the authority, unparalleled in the government, was carried out with special attention to quick, effective and focused activity on the one hand and on the other, keeping in line with Ministry of Economy policies to advance innovation.”

Chief Scientist at the Ministry of Economy, Avi Hasson concluded “Today we bring an innovative model of a statutory authority capable of operating quickly and effectively according to industry needs. A system of checks and balances was established to maintain government goals for which the authority was established, but it will still be managed with speed, flexibility and innovation – at a standard suitable for the sophistication and innovation of the industry it serves. The Israeli hi-tech industry has reached significant achievements in the past twenty years. It has become one of the leading centers of innovation in the world and the economy’s main engine of growth. In recent years, a slowdown in the industry has become increasingly worrisome and therefore significant steps need to be taken in order to reenergize the industry’s growth. The goal of the Office of the Chief Scientist is maintaining and strengthening the leading position of the hi-tech industry in the face of increasing competition, and connecting other large segments of the economy to this engine of growth. This goal necessitates a significant policy shift and a move from one central mission of ‘creating’ industry – a mission that stood at the center of the office’s policy – to multiple missions which are more focused and demand tools which are client-oriented and mission-oriented.”

(YWN – Israel Desk, Jerusalem)