The Israel Innovation Authority announced that it’s launching the “Human Capital Fund” for the high-tech sector, which will provide grants with up to 70% support rate. The fund’s purpose aims at increasing high-tech employment by converting workers from other sectors or by bringing in workers from unrepresented minorities in the high-tech industry, further adding to Israel’s natural melting pot. The Authority will dedicate a $5.9 million budget for the Fund’s first year of operation.
Grants valued at between $200k and $2.2M
The Israel Innovation Authority, which is usually in charge of deploying plans to encourage hiring in the Israeli tech sector, decided to look outwards and offer budgets, for plans like this one, to be implemented independently. The Israel Innovation Authority explains that the offered grants will be dedicated to programs that will provide solutions or partial solutions to problems like “expanding experienced human capital entrance channels into Israel’s expert industry sector, with a focus on R&D.”
The new fund will operate similarly to the Authority’s already running R&D fund, in supporting various projects - including new projects that will use the grant for growth or expanding existing projects in an effort to reduce the loss of human resources, increasing the number of players in the game, and improving quality solutions for high-tech recruiting.
The Israel Innovation Authority further noted that the new fund will highlight and preference incorporation of minorities, which have little representation in the tech industry such as women, people with handicaps, workers from the Arab sector, and others. In addition, the Authority will create a budget that will target the hiring of capable employees that were otherwise harmed by the financial crisis brought on by COVID-19, as well as appropriating new and returning Israeli residents with previous R&D experience. The first call to action will open for two months between August and October.
As part of the Fund’s framework, two different grants will be handed out: a $200k grant for new projects and a grant of up to $2.2 million for existing projects.
Israel Innovation Authority CEO Aharon Aharon said: “this devastating period where we see hundreds of thousands of Israeli citizens without work offers the Israeli market opportunity to qualify unemployed individuals for high-tech R&D positions. The continuous demand for a trained and qualified workforce continues to present a challenge for R&D innovation in Israel’s high-tech arena.”