73 / 120
/73/
Academic Excellence
Israel is blessed with a large number of world class academic and medical institutions
within a relatively small geographic area, giving rise to an environment of cross-
fertilization of disciplines that led to innovation in medical technology. Leading
medical institutions include the Hadassah Hospital in Jerusalem, the Rambam
Hospital in Haifa, Tel Aviv’s Ichilov Hospital and the Chaim Sheba Medical Center at Tel
Hashomer outside of Tel Aviv. Some of Israel’s leading academic institutions include
Tel Aviv University, the Weizmann Institute of Science in Rehovot, the Technion in
Haifa and the Hebrew University of Jerusalem. The strength of these institutions, and
many others, is reflected in the large number of scientific papers which they publish, as
well as the constant “deal flow” of intellectual property ready for commercialization.
These institutions have active technology transfer offices which are engaged full time
in the commercialization of technological inventions developed by their respective
academic andmedical staff,with sophisticated licensing and start-up practices. These
inventions, and their transfer to industry, ultimately serve as the primary foundation of
the life sciences industry in Israel.
Government Support
The Israel Innovation Authority (formerly the Office of the Chief Scientist), provides
financial support for research and development programs (R&D) in all technological
fields, including life sciences. Grants, which can be a substantial part of R&D budgets,
are provided directly to companies engaged in R&Dactivities. Some of these programs
include collaborative research initiatives between the academic world and industry,
which contributes to stimulating growth in the life science field.
Government support is also highly effective when provided through the various
incubator programs, many of which aim to attract global expertise to support local
start-ups. Through these programs, government funding dramatically reduces the
risks involved in investing in medical technology start-ups. Recent examples include
MedXelerator, FutuRx and MindUP.
Based in Tel Aviv, MedXelerator is a venture of Boston Scientific, Intellectual Ventures,
MEDX Ventures and the Sheba Medical Center. Having started operations in September
2016, it will focus on medical devices and digital health. Johnson & Johnson, Takeda
Pharmaceuticals and OrbiMed Israel teamed up to establish FutuRx, perhaps Israel’s
premier biotech incubator today, with world-class laboratory facilities and resources to
support the development of pharmaceuticals and other products over the long term.
Haifa’s Digital Health Incubator, MindUP, is a venture of Medtronic, IBM, Pitango Venture
Capital and the Rambam Medical Center. It will focus more on medtech, personalized
medicine, and technologies to improve the quality and efficiency of healthcare delivery.
Global Presence of Life Science Giants
Many global life science companies have established local R&D centers in Israel, in order
to access local engineering and medical talent. These centers are themselves also a
source of innovation. For instance, Johnson & Johnson, GE Healthcare, Philips, Biosense
Webster, IBM, Covidien, Samsung Electronics and Thermo Fisher Scientific, are active in
themedtech space in Israel. In addition,the presence of Teva Pharmaceuticals,the leading
generic drug company, is heavily involved in R&D activities in the life sciences area.
All of the above combine to produce a steady flow of new life science start-ups and
technologies. One of the first challenges they face, either from inception or upon graduating
from the incubator or accelerator, is obtaining financing (beyond grants that may be available).