I⁴F is cooperation between the Department of Science and Technology (DST), Government of India, and the National Technological Innovation Authority in Israel (Innovation Authority) to promote, facilitate and support joint Industrial R&D projects, between companies from India and Israel.

DST and Innovation Authority have jointly created a $40 Mn USD I4F fund with equal contribution from both sides over the period of five years. I⁴F is aimed to promote, facilitate and support joint Industrial R&D between India & Israel which would lead to co-development and commercialization of innovative technologies benefiting both the countries.

The objective of this programme is to respond to the global issues concerning science & technology while developing technologies that can be commercialized and localized within 2 years through Joint cooperation between India and Israel.

In India, on behalf of DST, funding and other services will be provided through Global Innovation & Technology Alliance (GITA) and in Israel, funding and other services will be provided through Israel Innovation Authority.

Applicants are required to review the complete application guidelines before developing and submitting a complete proposal.

Please note that the proposal preparation guidelines should be seen as suggestions which will be helpful to applicants in preparing a proposal that addresses the issues on which the evaluation will be based. Applicants can choose to address the suggestions that they believe will strengthen their proposal.

Department of Science & Technology (DST)

The Department of Science & Technology (DST) was established in May 1971, with the objective of promoting new areas of Science & Technology and to play the role of a nodal department for organising, coordinating and promoting S&T activities in the country. The Department of Science & Technology (DST), Government of India has an important role in building a strong base for Research, Development and Demonstration in India and in addressing national concerns about strengthening science and technology. DST, as a national agency for strengthening the base of Science and Technology in the country, has made a sincere attempt to address national concerns of India in basic research.

For more information about DST, please visit www.dst.gov.in

Global Innovation & Technology Alliance (GITA)

GITA is a “not–for–profit” Public-Private-Partnership (PPP) company promoted jointly by the Confederation of Indian Industry (CII) with 51% holding and the Technology Development Board (TDB), Department of Science & Technology (DST), Government of India (GoI) with 49% holding.

It is an innovative mechanism between the government and Indian industry for attracting the industry’s investment in technology by mapping technology gaps, evaluating technology offers across the globe, connecting among technology developers, providers, commercializers, and funding last phase of technology development that connects the market and deployment of technology solutions.

Israel Innovation Authority (IIA)

The Israel Innovation Authority previously known as the Office of the Chief Scientist is the support arm of the Israeli government, charged with fostering the development of industrial R&D within the State of Israel. The mission^[1] of the Authority has been defined through the country's "Law for the Encouragement of Industrial Research and Development—1984" (The R&D Law) and its operations are facilitated through Israel's R&D Fund, as well as a variety of international programs, agreements and collaborations. Its mission is to assist the advancement of Israel's knowledge-based science and technology industries in order to encourage innovation and entrepreneurship while stimulating economic growth.

For more information about Israel Innovation Authority, please visit https://innovationisrael.org.il/en/

The collaboration aims to promote projects that are innovative and reflecting consumer demands, so that they are market-oriented at the same time focussed on creating a new product or process that will eventually lead to commercialization.

On this basis, this CFP-5 is open to the applied R&D projects in all areas but will prioritize the areas of:

• Agriculture
• Energy
• Healthcare
• Information & Communication Technologies (ICT)
• Water
• Any Other

The CFP is open to projects in the above sectors, based on the merit that includes Science & Technology (S&T) development leading to commercial success, social good and benefit to both countries.

Selected R&D project participants will receive funding from GITA, on behalf of the Department of Science & Technology (DST), Government of India, in India and from Israel Innovation Authority in Israel respectively. Funds will be provided in accordance with the national laws, rules, regulations and procedures established by each organization, and/or each jurisdiction/country.

Although the individual type and value of individual contributions allocated to the India-Israel project may vary, each bilateral project must highlight the total contribution from each participating country.The total contribution may be defined as the combined value of cash, human resource effort, services and/or equipment that each country invests in an R&D project.

Funding for R&D Project Participants in India

GITA on behalf of the Department of Science & Technology (DST), Government of India, will fund the successful projects, as follows: 

DST-GITA will support a range of 0.25 Million USD to 1.25 Million USD per project or 50% of the Indian Project Cost whichever is lower.

Funding for R&D Project Participants in Israel

Innovation Authority will support a range of 0.25 Million USD to 1.25 Million USD per project or 50% of the Israeli Project Cost whichever is lower.

Each proposal must include an eligible Project Lead Applicant who would be responsible for application submission and leading the project in the two countries respectively. Although it is not mandatory, projects that engage a technology developer and a technology end-user /first customer are strongly encouraged.

Before submitting the proposal, the heads of the principal entities (Project Leads) of both countries shall have completed negotiations on details including payment of contributions, roles and mutual responsibilities.

Indian Applicants

Eligible Indian applicants must be researchers or managers of companies that operate and are headquartered in India. Academic institutions, research hospitals, other R&D institutes (including not-for-profit research institutes recognized by DST/GITA) that are headquartered and operate in India are strongly encouraged to participate in the projects as co-investigators.

Specific criteria for eligible applicants are as follows:

• The Indian Project Lead (INPL) (i.e. lead company) must be a commercial company under the Indian Company Act 1956, which operates in and is headquartered in India.
• At least 51% stake of the INPL Company must be owned by Indian citizens.
• The INPL should have the required expertise and team capacity to manage the proposed project.
• Sole proprietors and partnership firms are not eligible for support under this programme
• Companies headquartered and owned outside India and their subsidiaries in India, or vice versa, are not eligible to receive funding from DST/GITA under this programme.

Preferences will be given to:

• Indian companies having a partnership with government-funded Indian academic and R&D institutions.
• Indian companies having in-house R&D Centre which is recognised by the Department of Scientific and Industrial Research (DSIR), Government of India.  For details, please refer to http://www.dsir.gov.in/files/12plan/bird-crf/rdi_af_blank.pdf.
• Companies that fall under the Micro, Small and Medium Enterprise (MSME) category, as defined by the Government of India. For the definition of MSME, please refer to http://www.dcmsme.gov.in/ssiindia/defination_msme.htm.

Israeli Applicants

An Israeli for profit R&D performing company, which is registered, operate in Israel as Project Lead (ISPL), responsible for the Israel application submission, leading the Israeli side of the project and communicating with the Indian Project Lead.

• The Israeli Project Lead (ISPL) ((i.e. lead company) and any other Israeli company that is signed on the Cooperation and Project and Funding Agreement are subjected to the Israeli Research and Development Law (1984) and the Israel Innovation Authority Board Guideline number 1.

Important Notes (this section will go below the eligibility)

• Collaborations must be business-led from both sides.

Sub-contractors (i.e. universities, research institutions) are eligible to participate as Sub-contractors or as part of bi-lateral Indo-Israeli consortium as long as they have background IP that will be used in the joint project or if they get ownership on the new developed Product

• Joint Technology Development leading to pre-commercialisation prototype development, wherever applicable
• Projects should be innovative, user-need based and market–driven, leading to new product or process and eventual commercialization
• Duration of the project is up to 24 months.
• Projects must articulate clear commercial goals and associated commercialisation strategies; Building on the principles of a true bilateral partnership, all projects should demonstrate equivalence in effort from the Indian and Israel partners.
• Applicant already possesses basic infrastructures/testbeds, prototype and developed basic Proof of Concept (POC).

Applicants are required to meet all of the following criteria when applying for funding under this CFP. GITA and the Israel Innovation Authority will use the following joint evaluating criteria in preparing their recommendation:

• The Product and the Technology – What is the extent of technological innovation in the product to be developed? Is the technological approach sound? What are the technological challenges and assessment of technological risks? What competing technologies exist and what is their relative disadvantage?
• The cooperation level between the partners- synergy between the companies, complementary technological abilities, tasks' balance between the partners, benefits of each partners from the joint collaboration, the cooperation as a key factor to develop a product/technology with a substantial added value to the relevant markets, to what extent each partner benefits from the each other existing IP, in what way the partnership is strategic for the projects' partners
• The Budget – Is it realistic? Does it contain unnecessary expenses or does it lack others that are crucial?
• The Market – Is the estimate of the market size, market share and commercial potential realistic? Who are or will be the main competitors in this market?
• Capabilities of the Companies – The qualification of the development teams and their ability to successfully carry out the development objectives. The resources available to carry out the marketing/sales and sales support responsibilities.
• Benefits – What benefits is the project expected to yield to both companies and the Israeli and Indian national economies?

What You Can Claim as Eligible Costs for the Project?

This document is intended for use with the CFP/Competition Guidance Document. It covers the following:

There are ranges of costs that can be supported as your eligible project costs.

The estimates of the costs that you use to complete the project cost must be the total costs for the project and will include costs for all activities and all participants that are involved in your section (part) of the project.

Please Note: Any revenue generation activities cannot be included as part of project costs. Only Research & Development related activities can be included as part of project costs.

Eligible Costs

For a cost within your project to be eligible for funding it must:

GITA pays your grant based on audited actual eligible costs. These costs must be incurred and paid between your project start and end dates.

• DIRECT LABOUR

Definitions of Eligible Direct Labor

Permanent/Contractual personnel directly related and relevant to the project that are based in India for the Indian company, and based in Israel for the Israeli company. The R&D personnel may be directly employed or on contract and receive the compensation from the applicant company. The R&D personnel should hold relevant technical qualification and experience

Conditions

The rules of salary expenses, including overhead and administrative expenses, will apply according to the accepted practice in each country

R&D personnel who are foreigners working in India or Israel must hold valid work passes.

Not Supported as Direct Labor

Temporary R&D personnel (to be classified under V. Subcontractors & Consultants) R&D personnel who are employed and paid by a related company, subsidiary, overseas branch, 3^rd party, etc.

• EQUIPMENT / SOFTWARE DEPRECIATION

Definitions of Eligible Equipment / Software Depreciation

 The usage cost in value of the new equipment or software deployed during the project and the purchase of equipment/software which are required for and relevant to the project shall be supported according to DST/GITA and Israel Innovation Authority policies.

Not Supported as Depreciation Cost

Miscellaneous cost such as VAT/GST, bank charges, shipping, delivery, setting up, servicing, etc.

Full purchase cost of equipment and software

• EXPENDABLE MATERIALS & SUPPLIES

Definition of Eligible Expendable Materials & Supplies

Off the shelf consumables which are used during the Project and are not reusable.

Items which require to be custom-made by 3^rd parties if required for the project.

Condition

The applicant company supplying consumables to its Project's partner during the Project should not charge the consumables cost to the partner's proposed project budget. The applicant company should include such cost in its own proposed Project budget

Not Supported as Expendable Materials & Supplies Cost

Office supplies, rental, utilities, etc.

Miscellaneous cost such as VAT/GST, bank charges, shipping, delivery, etc.

• TRAVEL

Definitions of Eligible Travel Cost

The cost incurred during trips between India and Israel as well as internal travel cost in India

Condition: Only economy class travel (tickets ) is eligible for reimbursement

Conditions

Only economy class travel (tickets) is eligible for reimbursement

Only trips made by R&D personnel listed in the approved project budget are recognized

Trips should be of R&D nature and directly related to the project

The applicant company's R&D personnel, who travel to the project partner's country, should not charge their travel costs to the partner's proposed project budget. The applicant company should include such costs in its own proposed project budget

Not Supported as Travel Cost

Trips to countries other than India and Israel

Passport and visa application, travel insurance, etc.

• SUBCONTRACTORS & CONSULTANTS

Definition of Eligible Subcontractors & Consultants

3^rd parties which are engaged by the applicant company to assist in the engineering and technical aspect of the project Consultants who are engaged by the applicant company to develop a marketing/commercialization plan

Conditions

I⁴Fwill qualify the applicant company's proposed project budget. The total outsourcing cost is recognized at a maximum of 30% of the qualified cost before I⁴Fincludes the additional overhead and general & admin cost

The applicant company's contractual agreement with the subcontractors or consultants shall be submitted to I⁴F upon request. The contractual agreement must comply with these Guidelines and in particular the provisions of the IPRAnnex.

The applicant company engaging its related company or subsidiary as subcontractor or consultant shall be charged at cost

 The applicant company does not possess the expertise of the subcontractor or consultant. Legal consultation related to the project, other than the dispute or arbitration.

Not Supported as Subcontractors & Consultants

3^rd parties which are engaged to carry out mass production, business/legal consultation, etc.

The applicant company's project partner

• CERTIFICATIONS

Definition of Eligible Certifications

Regulatory activities and standards certifications related to the project which are mandatory before the proposed product or technology can be commercialized

Supported as Certifications Cost

Patent applications

Not Supported as Certifications Cost

Tests are done by 3^rd parties which are not mandatory for the commercialization of the proposed product or technology (to be classified under V. Subcontractors & Consultants)

• JOINT COMMERCIALIZATION

Definition of Eligible Joint Commercialization Cost

Any further certifications or testing required for commercialization based on a detailed report.

Joint participation in trade exhibitions, joint presentation at conferences, joint marketing collaterals and joint roadshows in Israel/India or other third countries

Examples of joint commercialization costs: Rental of exhibition booth space, conference registration fee, the printing of brochures/posters, travel cost related to joint commercialization activities

Conditions

For each commercialization activity, a prior confirmation is needed by both fund managers.

Grant amount up to equivalent of US$30,000 per project each side is provided for the pre-defined joint commercialization costs stated above.

 Both the applicant company and its Project partner must share the commercialization cost, hence, the commercialization cost must be included in both companies' budget forms.

Not Supported as Joint Commercialization Cost

Commercialization activities which are not carried out jointly by the applicant company and its project partner

Non-Eligible Costs:

• Input VAT, Excise Duty;
• Interest charges, bad debts, profits, advertising, entertaining;
• Hire purchase interest and any associated service charges;
• Production, quality control/assurance, , distribution, supply chain or selling costs or activities;
• Advertising and marketing costs or activities;
• Entertainment and hospitality costs;
• Profit earned by a subsidiary or by an associate undertaking work sub-contracted out under your project;
• Inflation and contingency allowances;
• The value of existing assets such as IPR (not developed as part of this project), data, software programmes and other exploitable assets that any of the collaborators contribute towards your project;
• Project audit or legal costs. The legal costs of setting up your project or the collaboration and costs associated in conducting audits, accountant’s reports or making grant claims;
• Sick days, waiting time and non-productive time;
• Bonuses, awards, profit related pay, company car expenses and any discretionary benefits to staff.
• Project audit fees

Commercialization activities which are not related to the proposed product or technology. 

The I4F common applications are to be submitted following these criteria and in accordance with the national laws, rules, regulations and procedures in effect:

• At least two science and technology companies from the respective countries should express a desire to cooperate in the research and development of a new product or a new process.
• The project may involve more than one company from each side; academic/research entities are eligible to join as sub-contractors or as part of a bi-lateral Indo-Israeli consortium.
• The product should be technologically innovative and should have commercial potential. The joint industrial R&D project should aim at the development of products/processes leading to commercialization in the global market.
• The project partners should agree in advance on the IP rights and on the commercialization strategy of the product or process.
• The project should demonstrate the contribution of the participants from both countries
• The project must be balanced between participants and significant to both partners (no less than 40%-60%)
• The project timeframe is limited to 2 (two) years.
• A minimum of 50% of the total project costs must be incurred by the business partners (Israel and India).
• Although it is not mandatory, projects that engage an end-user/first customer are strongly encouraged in either side of the consortium

Applications meeting all basic criteria of the CFP are invited to submit full project proposals using the I4F common forms to both Implementing Organizations simultaneously within the deadline of the particular CFP's period. Applications submitted after the deadline of the call period would be considered eligible for the next call period.  The proposal's application must be signed following the CFP instructions. 

The Israeli partner is required to submit I4F application forms in accordance with the Israel Innovation Authority regulations, through the official Israel Innovation Authority websites online system. The Indian partner is required to submit I4F application forms to DST/GITA website's through an online system.

Only online mode of submission will be accepted.

• Covering letter
• Completed Full Project Proposal in Application Form along with all annexures (signed and stamped by Authorized signatory) 
• Presentation for Evaluation Committee Meeting – add photographs in PPT
• Memorandum of Understanding (MoU) between All Consortium Partners. This MoU should basically cover the following points:
  • Percentage sharing of IP Rights on new product/process/knowledge being developed/ created/invented during this collaborative R&D Process.
  • Background IP’s of the partnership (If Any) to be used for this project scope.
  • Probable/possible market for the new product/process/knowledge & rights to manufacture/License in the respective market for  the period of time (time span)
  • % sharing of Royalty
  • Dispute and arbitration clause
  • Exclusivity and Non-Exclusivity rights if any
  • Duration of this agreement in force
• Registration Certificate of all project partners, including Academia/R&D Labs, issued by competent authority
• In case of in-house R&D Centers, all relevant certificates from stakeholders, competent authority relevant for in-house R&D, Defence Manufacturing & production should be submitted. 
• Audited Annual Reports (including Income Tax Return, Balance Sheet, and Profit & Loss Account & Auditor’s Reports) of all Consortium partners for the last three Financial Years.
• Know Your Customer (KYC) documents of all Consortium partner(s). KYC means Identity & Address proof of the organization which includes Company PAN Card, Electricity Bill, etc.)
• Self-Declaration of Applicant on Company letterhead, signed by MD/CEO/Company Secretary, as all Statutory Norms are complied by the Applicant till date.
• Share Holding Pattern of the Company (highlighting the Foreign Investment, if any)
• Copy of all relevant Certification like CMMI, ISO, etc, if any