Reform of Technology Transfer from Academia to Industry

Israeli universities are key drivers of innovation and industrial growth. In light of this, the Israeli Ministry of Finance (the “MOF”) announced on June 15, 2026 a reform regarding the commercialization of know-how from universities to the hi-tech and technology industries (the “Reform”). The Reform is designed to modernize and streamline the commercialization of academic know-how in Israel by creating a more efficient, market-oriented framework for transferring university research to industry. Broadly, it aims to increase legal and commercial certainty, reduce bureaucracy, remove regulatory barriers, and expand the practical application of scientific research through stronger collaboration with industry entities. The Reform is a joint initiative of the MOF, the Association of University Heads, Israel (VERA), and the Planning and Budgeting Committee of the Council for Higher Education.

Key features of the Reform include:

1. External Commercialization Companies. The Reform will encourage the establishment of private companies outside the universities to serve as domain experts in the field of commercialization.
2. The commercialization of know-how will be based on uniform and transparent principles to be published by each academic institution, thereby enhancing certainty and enabling efficient processes tailored to entrepreneurs, companies, and investors.
3. Financial Incentives. The Israel Innovation Authority will promote a dedicated track aimed at expanding the transfer of knowledge from academia to industry and strengthening its contribution to the growth of Israel’s high-tech sector.
4. Tax and Regulatory Matters. As part of the Reform, a joint team will be established to examine and address existing tax and regulatory barriers that may delay or complicate commercialization transactions.

Overall, the Reform reflects a significant policy effort to revitalize Israel’s academic technology transfer ecosystem by making commercialization more efficient, better resourced, and more responsive to market practices. At present, the Reform is in the pilot phase.

The content in this update is provided for informational purposes only and is not intended to be comprehensive. It does not serve to replace professional legal advice required on a case by case basis.