Barak MX missile-defense system. (Israel Aerospace Industries) Israel Aerospace Industries
Barak MX missile-defense system

The lab aims to cut the high costs and regulatory barriers that have long slowed younger firms from moving their ideas beyond the prototype stage.

By Shula Rosen

Israel is setting its sights higher with a new plan to strengthen its presence in the global space industry.

The Israel Space Agency, together with the Israel Innovation Authority, announced Monday that the country will invest NIS 40 million ($12 million) to establish a national R&D lab for space technologies.

The facility will be designed to help both startups and established companies test and validate space-bound technologies under real conditions.

Officials said the lab aims to cut the high costs and regulatory barriers that have long slowed younger firms from moving their ideas beyond the prototype stage. According to the program, market launch expenses could be reduced by as much as 35 percent for companies selected to participate.

“Launching Israeli technologies into space will propel our space industry to the forefront of global innovation,” said Israel Innovation Authority CEO Dror Bin. He added that the initiative would remove hurdles that often prevent small firms from scaling up quickly.

The winning bidder to operate the lab will receive up to NIS 40 million in government grants, covering between 55 and 66 percent of project costs.

Over the next three years, the program is expected to launch at least 15 Israeli payloads into orbit, including devices such as smart sensors that require proof of feasibility before commercial use.

Israel Space Agency director Uri Oron called the laboratory a “launch window for the next generation of Israeli innovation,” saying it would give entrepreneurs and academics access to resources once reserved for major corporations.

The project is also expected to boost collaboration between industry and academia, provide regulatory guidance, and create new partnerships with global aerospace players. Aviv Zeevi, head of innovation infrastructure at the Israel Innovation Authority, said the lab will centralize procedures and pre-launch testing, allowing multiple devices to be deployed together.

Israel already hosts more than 100 space technology firms, which have raised over $700 million in recent years. The country’s growing sector marked another milestone in July with the launch of Dror-1, Israel’s most advanced communications satellite, aboard a SpaceX Falcon 9 rocket from Cape Canaveral.

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