Israel will invest NIS 40 million to launch a national R&D lab for space tech

Israel will invest NIS 40 million ($12 million) to establish a national R&D lab to back startups developing space-bound technologies and propel them into orbit, according to a program announced by the Israel Space Agency and the Israel Innovation Authority on Monday.

The joint funding program by the National Research Infrastructure Forum (Telem) is launched as Israel wants to bolster the country’s “global competitiveness in the rapidly growing space sector.” By 2040, the global space economy is forecasted to increase to over $1 trillion from around $350 billion, according to a report by Morgan Stanley.

The new lab is established to help both mature companies and early-stage startups test and validate technologies in real space conditions. Especially, younger startups struggle to develop and launch their technologies due to high financial costs and regulatory barriers. The lab is expected to reduce market launch costs by 35 percent for eligible companies.

“Launching Israeli technologies into space will propel our space industry to the forefront of global innovation,” said Israel Innovation Authority CEO Dror Bin. “We are removing regulatory barriers for Israeli space companies, enabling them to scale quickly and significantly.”

The selected bidder for the operation of the lab will be awarded up to NIS 40 million in government grants, covering 55% to 66% of total project costs, depending on the selected investment program.

Over the next three years, the lab is expected to launch at least 15 dedicated Israeli payloads into orbit, including relevant devices that require proof of technological feasibility for proper operation in space, such as smart sensors.

“The laboratory to be established will become a launch window for the next generation of Israeli innovation, making space accessible not only to large corporations but also to entrepreneurs and academia, helping them demonstrate the strength of Israeli technology in the global market,” said Israel Space Agency director Uri Oron.

The space tech hub will also serve as a springboard to support early-stage ventures, facilitate regulatory and licensing guidance, advance partnerships with global aerospace players, and fortify research collaboration between academia and industry.

“The goal is to establish a centralized hub for pooling resources ahead of space launches, which will carry out all administrative procedures and pre-launch testing in a coordinated manner, enabling multiple devices to be launched simultaneously,” Aviv Zeevi, VP & Head of Innovation Infrastructure Division at the Israel Innovation Authority, told The Times of Israel.

Israel is already home to about 110 space tech companies, which have raised more than $700 million in capital over the past five years, according to data by Startup Nation Central. Among the number of promising space tech startups is Helios, which is developing technology that can produce oxygen needed for fuel from lunar soil, and Ramon.Space, a company building supercomputing systems for the space sector.

Over the past decade, Israelis have been engaged in a number of prominent space-related projects in the fields of satellite communications, rocket propulsion, and sensors. In July, Israel’s most advanced communications satellite, dubbed Dror-1, was successfully launched into space from Cape Canaveral in the United States. The satellite, developed by Israel Aerospace Industries, was launched into orbit on a Falcon 9 two-stage rocket, manufactured by Elon Musk’s SpaceX.