How Research & Development Funding Works
SIIRD provides research and development (R&D) funding up to US$1.5M for joint R&D projects and USD$1M for pilot projects between companies based in Singapore and Israel. Interested companies are welcome to apply for this innovation grant by following the instructions in the Application Process page. For projects approved after May 2017, the research grant disbursements to Singapore and Israeli companies would be in local currency i.e. Singapore Dollars and Israeli Shekels respectively.
Who Can Apply For Our Innovation Grant?
- The application must be jointly submitted by a Singapore-registered company and an Israel-registered company.
- Either company must not have more than 20% shareholding in the partnering company.
- The joint project must be undertaken in Singapore and Israel, with at least 30% of the actual Research & Development work done in Singapore and Israel respectively.
- Technology and product developed must have potential for commercialization.
The Singapore company should meet the following criteria as well:
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- Is a business entity registered and operating in Singapore
- Has at least 30% local shareholding, i.e. have at least 30% of its shares held by a Singapore Citizen or PR
- Be in a financially viable position to start and complete the project
Companies are advised to contact SIIRD Managers in the respective countries to find out more about the application process.
How Does R&D Funding Work?
The submitted proposals will be subjected to evaluations by independent professionals from Singapore and Israel, after which the evaluated proposals will be submitted to SIIRD Board for approval. SIIRD Board convenes at least twice a year.
There are 4 types of research grants available for application
Feasibility Study Project
Grant
For investigation project to determine the technical feasibility and market acceptability of a new product or process concept.
Fund up to US$50,000 or 50% of the total qualified project cost, whichever is lower.
R&D Project Grant
For project to create or enhance commercialisable product or technology and project duration up to 2 years.
Fund up to US$1.5M or 50% of the total qualified project cost, whichever is lower.
Fund up to US$30,000 for commercialisation activities.
Pilot Project Grant
For project to pilot or testbed existing near-market technologies and project duration not more than 1 year.
Fund up to US$1M or 50% of the total qualified project cost, whichever is lower.
Fund up to US$30,000 for commercialisation activities.
Strategic Sector Programme Grant*
For project to accelerate the creation of disruptive technologies by tapping on researches and academia, with project duration up to 3 years.
Fund up to US$3M or 66% of the total qualified project cost, whichever is lower.
Fund up to US$30,000 for commercialisation activities.
* only applicable for project in sector focus areas as defined by SIIRD on a yearly basis
Find out more about the proposal submission process at the Application Process page.
Benefits Of Utilizing SIIRD R&D Funding
- SIIRD shares companies’ risk from R&D or pilot projects
- SIIRD does not take equity in the funded companies
- SIIRD does not share Intellectual Property Rights of developed products/technologies
- SIIRD does not require collateral from the funded companies
Grant Repayment
Should the innovation or technology developed in whole or part during the SIIRD project be successfully commercialized by product sales or licensing of the innovation or technology, SIIRD is entitled to repayment of up to 100% of the SIIRD funding or Conditional Grant. All repayments to SIIRD are considered as pre–tax expenses. Repayment shall be based on either of the following:
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The Conditional Grant shall be repaid, until 100% of the Conditional Grant has been repaid, at the rate of:
• Product sales – 2.5% of Gross Sales
• Licensing of innovation or technology – 30% of payments under such license agreement(s) -
When the following maximum percentages of the Conditional Grant have been repaid in any of the following years following the first commercial transaction, no additional payments to SIIRD on account of the Conditional Grant shall be required.
After the fifth anniversary of the completion date of the project, companies could submit a formal request to SIIRD, with supporting documents, for their repayment obligation to be reviewed for cases where the innovation/technology has failed, reached its end of life or is discontinued.