Israel to invest in digital health technologies
The Israeli Ministry of Health is partnering with the Israel Innovation Authority, the government’s tech investment arm, to launch a new government programme that will invest in pilots of digital healthcare or medtech technologies. The venture will have an annual budget of around $8.5 million for the next three years.
The programme is the first step of the digital health national plan announced by the government in March with a five year budget of $264 million (NIS 922 million). The plan proposes to provide startups with access to the databases of Israel’s four health maintenance organizations. At the time, 400- 500 digital health startups are currently operating in Israel.
The authority wants to enable companies to test their products at the earliest opportunity, in partnership with Israel’s health maintenance organizations and the Israeli medical corps, Sagi Dagan. Startups participating in the programme will receive financing of 20-50 per cent of their research and development expenses. Those developing technologies with the potential to significantly advance the Israeli healthcare system, or to improve healthcare both in Israel and globally, will receive 60-75 per cent. The grant will not constitute an equity investment, but participating companies will pay the authority royalties if their technology reaches a commercial stage.