Israel is launching an initiative to set up a national R&D laboratory to kick-start spacebound technology development, the Israel Space Agency and Innovation Authority announced.

The lab, backed by a NIS 40 million funding initiative, will help the full range of Israel’s space sector, from established firms to start-ups still getting their feet off the ground. The program will further provide eligible firms with benefits starting from around 35% off of market launch costs.

The overall goal of the program is to help boost Israel’s role in the global space sector, giving firms in the Jewish state a more competitive edge. The lab is expected to launch at least 15 dedicated Israeli payloads into orbit.

Israeli space innovation: The future of the start-up nation

The space sector is the next major frontier of hi-tech innovation and development as the digital age bleeds into the space age.

The orbital economy boasts a rapidly growing ecosystem on everything from communications, travel, tourism, and scientific research.

American astronaut in space.
American astronaut in space. (credit: PEXELS)

This has also led space to become a major focus in the defense sector, with companies dedicated to providing security solutions and military advantages looking to the stars for the future of security.

Currently, the Israel Space Agency has made advancements in the field of satellites focused on communications and intelligence security. During the war with Iran, the Jewish state made use of intelligence gathered by satellites in orbit, allowing the IDF to have real-time information on its targets in Iran.

In addition, Israel recently launched the Dror-1 satellite, which will provide the Jewish state with increased security from cyberattacks and other attempts at sabotaging communications.

Real-time testing is a barrier to overcoming many obstacles in space research, with only some Israeli companies being able to conduct practical research in orbit.

However, the R&D lab hopes to overcome these obstacles by making it easier to test new technologies in real space conditions. In addition, Israel Innovation Authority CEO Dror Bin said that Israel will be removing many regulatory barriers to help local space-tech firms scale up.

The hub will also allow these space companies to better collaborate with both academia and with global players in the aerospace industry.

Proposals for new space technologies are due by September 17, and can be submitted on the Israel Innovation Authority and Israel Space Agency websites.

The winners will get up to NIS 40m. in government grants, which could cover 55%-65% of all project costs.

“Israel must remain a global leader in innovation and science, even beyond our atmosphere. Investing in a national launch lab will enable Israeli companies to validate technologies in real space conditions, strengthen Israel’s standing in the international space arena, and create a significant growth engine for the future of Israel’s economy,” Innovation, Science, and Technology Minister Gila Gamliel said.

The initiative proves that Israel is not afraid to dream big, said Israel Space Agency director Uri Oron.

“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.”