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Monitor recommends investing $105 million in Israeli biotechnology

Says Israel could be a world leader in biotech if it creates infrastructure

International consulting firm

Monitor Group

recommends that the Israeli government bolster the biotechnology sector in Israel. The group recommended that the state invest $105 million.

The company yesterday presented its recommendations at a meeting of the ministerial Science Committee. Of that sum, Monitor recommended, $52 million would be jointly invested by the private sector and the government in a fund to finance applicative academic research and its commercialization.

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The government should also invest $45 million in setting up two biotechnology incubators, grant $6 million to companies that conduct their R&D in Israel, and spend another $2 million on developing a biotech database.

Monitor believes that Israel has potential to boost the global biotechnology sector. Biotechnology sales are predicted to come to $100 billion by 2010.

But to achieve a leading position Israel has to overcome several bottlenecks. One of the worst, Monitor says, is the discord between the incubators' operating methods and those of the commercial companies operating on behalf of universities. The differences in operating methods makes it functionally impossible for the two to cooperate.