07 Jan 2019 The Importance of R&D Partnerships between Singapore and Israeli Companies
Today’s world economic progress lies within collaboration and friendship amongst countries to facilitate an effective transformation. This is the aim of the Singapore-Israel R&D Program which has been established since 1997. The Singapore Economic Development Board (EDB) and Israel Innovation Authority are the partners of this joint venture which is in charge of facilitating and/or supporting joint projects in the industrial research and development sector. One of the main goals of this cooperation is to establish a solid friendship between both countries and garner successful commercialization of R&D projects from both sides via various means such as providing grants for SMEs (Small Medium Enterprises), and SME funding.
>As one of the global players, Singapore has always shown a strong economic stature being able to transform itself in the last 50 years. The country has always shown a good capacity in handling its economic agility despite the lack of natural resources to support its increasing population. Singapore is now a thriving metropolis with an estimated GDP per capita of US$57,714, a far cry from the US$516 GDP of 1965.
Israel, on the other hand, is the gateway to the West and has been the staging ground of innovation and industrial research for more than a century. The World Economic Forum (WEF) Competitive Rankings Report of 2018 shows them at the 20th spot with a macroeconomic stability of 99.1%. Israel also ranks on the WEF Report as one of the most highly industrialized countries capitalizing on infrastructure and ICT adoption. Their financial system has shown a tremendous increase landing on the 22nd place.
Israel gathers its economic strength with world-class innovations ranking in the WEF in the 3rd place. This is fueled by the country’s drive to gain a better edge in science where leading research facilities and institutions are located. The government is also geared towards procurement of policies for public research use. This government undertaking has led to a higher number of patents procured by the country over the years. Some of the reasons gathered for Singapore’s partnership with Israel was its dominant role in building technological advancements including funding of Metacafe, the 3rd largest video sharing website in the world, the technological development behind Amazon products, development of the Philips Brilliance CT scanner, and many more.
The collaboration between the two countries is seen to be significant in both parts of the world as it opens a strong partnership to drive economic growth forward not just between countries, but also the neighbouring areas. This partnership and the open-door agreement will pave the way for other countries to globalize their local businesses which eventually would drive a strong economic performance in the Asian region.
Singapore’s strategic location and the SIIRD funding for SMEs will help globalize businesses in both countries. A total of 170 joint projects have been approved in the previous years. The joint venture is to drive economic growth by allowing the private sector from each country to utilize their manpower and support the bilateral industrial R&D partnership.
Research and development projects are focused on generating innovative breakthroughs from problems faced by our existing technologies. One such proposed project that has been included in the SIIRD funding was the development of digital scent which had been one of the most intriguing problems in multimedia experiencing. Companies involved aimed to develop digitally-enhanced scent modules which were to boost realistic cinematic experience.
Grant approvals for R&D projects are subject to assessment from independent professionals in both countries. Evaluated proposals are submitted to the Board of Approval which convenes two times per year. Qualified companies and research facilities could apply for the following SME grants: A Full-Scale R&D and Commercialization Project Grant, a Mini R&D Commercialization Project Grant, or a Feasibility Study Project Grant, which have an allotment of US$1 millions of funding cap, US$200,000 and US$30,000 respectively.
The importance of the R&D partnership between the companies of Singapore and the Israeli companies shows an envisioned future that is tied with the precepts of technological sustainability. It creates strong ties that benefit both countries fiscally and will positively boost economic growths.
SIIRD also showcases the powers held by both counties in the Asian Region, giving both of them a significantly structured technological development and positioning. This outcome-driven approach towards technological innovation and development is also critical for Singapore because it taps into the hidden talents of its people which is needed for the economic growth of the country.
And despite being relatively young, Israel has always shown resiliency to economic volatility. The country has been a global player in technological advancement, working on the hindsight of every possible convenience we now are simply taking for granted. InnovationIsrael.org reports the country as one of the global leaders when it comes to innovation and comes next after the US as “the most important high-tech center in the world”
The Singapore-Israel partnership is a strong indication of how solid the relationship of both countries are and the project has no silo but focuses on technological innovation that will help entrepreneurs, multinational companies, and investors of both countries. SIIRD is bound in helping both countries by sharing the risks involved in the R&D project. SIIRD is not to share or acquire the Intellectual Property Rights of products and technologies developed under the SIIRD program nor will it require collateral or equity from participating companies.