MINISTER OF ECONOMY NAFTALI BENNETT AND MINISTER OF FINANCE YAIR LAPID’S
PROPOSAL TO ESTABLISH NATIONAL AUTHORITY FOR TECHNOLOGY & INNOVATION
AUTHORIZED BY SOCIO-ECONOMIC CABINET
Minister of Economy, Naftali Bennett: “This is great news for the hi-tech
industry and economy of Israel”

JERUSALEM, September 15 2014 – Today 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: "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: "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: "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."

Director-General of the Ministry of Finance, Yael Endorn: "We have devised a
strategic plan aimed at increasing government investment in innovation. The
National Authority for Technological Innovation will help entrepreneurs
leading innovation and implement the government's goal of strengthening
innovation thereby growing the Israeli economy."

Chief Scientist at the Ministry of Economy, Avi Hasson: "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."