A l'occasion de la journée pays consacrée aux biotech et au médical en Israël, M. Alain Zeitoun, expert franco-israélien a présenté un aperçu du secteur et de l'expertise israélienne. En préambule au salon MedinIsrael qui se tiendra en mars 2015 prochain à Tel Aviv, Israel.

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Dr. Alain Zeitoun
Pharma & Medtech France - Israel
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Israel economy, industrial production and Trade - Highlights
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Israel at glance
•Population: 8 million
•Area: 22,145 sq.km
•GDP 2013: $291b, per capita: $36K
•2010: +4.8%, 2011: +4.7%, 2012: +3.4%, 2013: +3.3%
•High-Tech exports: 2010: $44b, 2011: +4.3%, 2012: +3%
•Inflation: 2011: 2.2%, 2012: 2.2% - about 1% in 2014?
•Unemployment: 2012: 6.9%, 2013: 6.2%, slight increase in 2014
•OECD: 2010 full membership
•Nobel prize: 10 winners, 6 in science, 2 in economics
•DP 2011 rate of growth - global comparison: OECD member average: 1.9%, US: +1.7%, Japan: +0.3%, Germany: +3.0%, France: +1.6% China+ 9.3%, India: +7.7%
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Inflation Rate
Rate of change in consumer price index
Source: Central Bureau of Statistics
Source: Bank of Israel
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Corporate Tax 2012
Ireland
Chile
Greece
Iceland
UK
Finland
Netherlands
Austria
Israel
OECD average *
Canada
Italy
Norway
Spain
Australia
Germany
Portugal
Belgium
France
US
Japan
13%
17%
20%
20%
24%
25%
25%
25%
25%
25%
26%
28%
28%
30%
30%
30%
32%
34%
34%
39%
40%
Corporate Tax
Source: Israel Ministry of Finance
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Total industrial production grew by 3.8%
Industrial Production
Average Annual Growth - 2013 average relative to 2004 average
Source: Central Bureau of Statistics
Source: Israel Ministry of Finance
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Exports of Goods and Services
As a share of GDP
Effects of the global economic crisis
Source: Israel Ministry of Finance
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Main Export Destinations
As a share of total exports
Source: Central Bureau of Statistics
Source: Israel Ministry of Finance
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Main Trading Partners
$ US Billions, 2013
* The data on trade with Hong-Kong is added to the data regarding China
Source: Central Bureau of Statistics
Source: Israel Ministry of Finance
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Israel’s Free Trade Agreements
1985
1992
1997
1997
1999
2000
2007
USA
EFTA
Turkey
Canada
Mexico
European Union (Association Agreement)
MERCOSUR
QIZ Agreements
2004
1998
Egypt
Jordan
Colombia*
2013
* Yet to be ratified
Source: Israel Ministry of Finance
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Israel – HR stance
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Unemployment and Participation
As % of total labor force
Source: Central Bureau of Statistics
Since the 2nd quarter of 2009 unemployment is relatively decreasing, with a gradual increase in the participation rate since the beginning of 2010.
Source: Bank of Israel
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Ease of Doing Business 2012
Source: The World Bank. 2012 report covers 183 economies.
Singapore
Hong Kong
New Zealand
USA
Denmark
UK
Korea
Ireland
Finland
Canada
Japan
France
Austria
Israel
South Africa
Italy
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2
3
4
5
7
8
10
11
13
20
29
32
34
35
87
Ease of Doing Business Rank 2012
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Dismissals during 2008/9 Global Crisis
Employee Jobs in the Business Sector
5.4%
4.9%
4.2%
3.3%
0.9%
-0.7%
-1.7%-1.8%
0.2%
2.8%
4.5%4.3%4.5%4.3%4.1%4.3%
2.8%
2.4%
1.7%
Employee Jobs in Business Sector
Change Rates, Each period Compared to the Parallel Period in a Previous Year
Source: Israel Ministry of Finance
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Employment Flexibility During 2008/9 Crisis
80%
30%
7%
15%
6%
11%
Reducing Overtime
At the expense of
employees' vacation days
Unpayment vacation
At the expense of employees
vacation days
while lowering wages
Reducing job scopes while
lowering wages
Efficiency Measures Taken by Industrial Companies
Towards all Employees, Excluding Management
Source: Israel Ministry of Finance
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Israel – innovation driven economy
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Competitiveness Report 2013
Source: World Economic Forum
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4.4
1.8
1.3
3.8
2.8
2.3
2.0
1.8
1.9
1.7 1.7
1.6
1.3
0
1
2
3
4
5
Israel
Finland
Germany
France
Belgium
EU27
Czech Rep.
United Kingdom
Canada
Ireland
Norway
Spain
Italy
Israel is a World Leader in Science,
Technology, and Innovation
Source: OECD. * International Institute for Management Development (IMD) Global Competitiveness Yearbook 2013. ** World Economic Forum (WEF)
Global Competitiveness Report 2013-2014.
Civilian R&D as % of GDP, 2011  1st in R&D expenditure as % of GDP*
 1st in quality of scientific research institutions**
 1st in public expenditure on education*
 1st for innovative capacity*
 2nd for entrepreneurship being widespread amongst
its managers*
 5th in PCT patents applications per million
population**
 6th for strength of investor protection**
 6th for Nobel Prizes per capita in the fields of physics,
chemistry, physiology, medicine and economics since
1950* Source: Bank of Israel
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Some High-Tech success stories
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The Importance of High-Tech to Israel
•Main contributions to the economy
–40% of GDP annual growth, 50% of industrial exports
–40% of VC investments ends as tax revenue, direct and indirect each US dollar invested in R&D contributes 6 US dollars to industrial product
•Most new employment comes from new small businesses
–3:1 ratio of direct and indirect employees to engineers
–employment growth rate is double that of the rest of the economy
•Suited to Israeli business culture
–entrepreneurial culture – creative, persistent, innovative, win attitude
–large number of entrepreneurs and engineers per capital
–using limited resources cost effectively
•Magnet of attraction to foreign investors
•Second only to the US
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Foreign companies invested in Israel - exple
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Israel Life Science - overall
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Israel Life Sciences Cluster
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Expenditure on R&D - as % of GDP,2010
Source: Israel Ministry of Finance
In 2009, 62% of Israel’s civilian R&D spending (US$4.7bn) took place in Israeli foreign owned companies. In addition, 92% of exported R&D services (US$3.4bn) originated from these companies.
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Technology Transfer Organizations (TTOs)
University-associated and hospital-linked TTOs provide a forum for connecting Israeli researchers and early stage projects with the industry through their commercialization efforts
•Hebrew University’s Yissum, founded in 1964. Yissum generates a similar output as its counterparts at MIT and Stanford, with 7,000 patents to date.
•Yeda Research and Development Company is responsible for technology transfer from The Weizmann Institute of Science.
•Hadasit, the TTO of Hadassah Medical Organization, has established a number of start-up companies, six of which have already gone public
•Ramot, the TTO of Tel Aviv University, recently joined forces with J&J to establish a joint research fund (metabolic disorders, CNS, cancer and stem cell research.
•The Technion Institute of Technology, largest center of applied research in IL. Recently, opened Mann Institute for R&D : biomedicine, medtech and life
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Israel Life Science – Sectors and Stages
Source: ILSI/IATI database 2009
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Medical Devices companies - sectors
Source: ILSI/IATI database 2013
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Biopharma companies - sectors
Source: ILSI/IATI database 2013
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Main Medical Fields - companies
Source: ILSI/IATI database 2009
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Life Sciences companies - # of employees
Source: ILSI/IATI database 2013
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Life Sciences patents as % of total patents
Source: ILSI/IATI – USPTO 2007
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Cumulative number of Life Sciences companies
Source: ILSI/IATI / IVC – 2012 analysis
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Biopharma – main therapeutic areas
•CNS – Four Blockbuster drugs in market (Copaxone, Rebif, Exelon, Azilect) - 5 Additional drugs in clinical stages
•Regenerative medicine & Cell Therapy (20 active companies, 4 in clinical trials)
•Cancer - Cell Therapy, Monoclonal Antibodies, Small Molecules, Image Guided Technologies
•Inflammation & Autoimmunity
•Cardiovascular
•Infectious diseases, Vaccines
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Stem Cells – strong specialty field
•Israel is one of the world centers for stem cells research and technology development.
•The Jewish religion does not hinder stem cell research – a significant plus.
•Israeli scientists are the most prolific authors on a per capita basis of published articles related to stem cell research.
•There are about 20 companies actively engaged in this new industry.
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Biopharma – some examples
BioLineRx is a clinical-stage, traded biopharmaceutical development company that develops products suitable for the pharmaceutical market satisfying an unmet medical need or exhibiting advantages over current therapies.
CollPlant (CLPT) is a biotechnology company specializing in the development and commercialization of plant-derived functional recombinant human collagen formulated for a variety of medical solutions.
Can-Fite has developed a platform technology that targets the A3 Adenosine Receptor for treatment of cancer and autoimmune inflammatory diseases.
Gamida Cell is developing unique stem cells therapeutics, based on its proprietary stem/progenitor cells expansion technologies.
Rosetta Genomics is a leader in the development of microRNAbased diagnostics tests for personalized medicine.
And …Atox Bio (Infectious Diseases), Cellcure (stemcells in Parkinson), Biocancell (Gene therapy), BiondVax (Intra nasal vaccines for several flu strains), Compugen (therapeutic &diagnostic drug discovery)
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Medical Device – main therapeutic areas
•Electro-medical & Surgical Devices
•Therapeutic and Rehabilitation Equipment
•Dentistry
•Medical Supplies
•Telemedicine
•Health IT
•Diagnostics – electronics and non-electronic
•Hospital Planning & Engineering Consulting Services
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Medical Device – some companies
Given Imaging - 1st ingestible video camera used to view the small intestine and diagnose disorders. Peer Medical – 3D view endoscope to diagnose gastrointestinal polyps, which can develop into bowel cancer. Insightec - Image Guided HIFUS (High Intensity Focused Ultrasound) and MRI guided non-invasive surgical procedure Medinol - pioneered the development of closed cell stent design and many additional innovations to the field of heart catheterization. GE Healthcare in Israel manufactured the world’s first miniaturized portable cardiac ultrasound system Philips Brilliance CT scanner, developed in Israel takes a comprehensive picture of a patient in seconds instead of minutes. And more: 3D Dental Mapping, Fixed non-cooled Magnet Open MRI, Simulators for Medical Procedures, Labor Monitoring, NiTiNOL Tooling, Intravascular miniaturized MRI imager, Spectral Imaging Device, Various Stents, Revolutionary Rectoscope, Implantable Insulin Generator, etc
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Itamar Medical produces innovative diagnostic devices based on proprietary technology to diagnose disorders associated with cardiovascular and autonomic nervous systems.
BioView delivers cell imaging technology platform and software package that combines morphological, immuno-staining and FISH information on the same cell, enabling physicians and researchers to efficiently and effectively improve the quality of patient treatment and care.
Impliant produces novel cushion-bearing materials and engineering combine to create long-lasting orthopedic implants for the hip, knee, shoulder, and spine.
Medical Device – some companies
Brainsway Ltd. is dedicated to the development and marketing of Deep TMS (Transcranial Magnetic Stimulation) systems, novel, noninvasive medical device for treatment of a wide range of neurological and psychopathological disorders.
HeadSense Medical Ltd. is develops disruptive products that will allow physicians and patients to diagnose and monitor clinical parameters in an easier and cost-effective way. HeadSense’s first product the HS-1000 is a non-invasive ICP monitor offering accurate and continuous ICP monitoring.
IceCure (TASE: ICCM) is a medical device company focused on developing and marketing minimally invasive, office-based cryoablation treatment solutions for women’s tumors. The proprietary IceSense3™ Cryoablation System offers a comfortable, ultrasoundguided procedure to treat breast tumors.
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Israel Life Science – Government support
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Israeli Government Support
–The Law for the Encouragement of Capital Investments
–Tax exemption path for manufacturing facilities
–The Law for the Encouragement of Industrial R&D
–Increased grants and longer project support for Life Sciences
–Company-Company, Company-Consortia, Company-Academy support programs
–The Global Enterprise R&D Cooperation Framework
–Special tax benefits for R&D centers
–Tax exemption for venture capital investment
–Annual Government support for Int. R&D projects: $100m
–Grants - scale from 20% - 85% of budget + regional incentives
–Conditional : royalty payments 3% - 5% of future product sales
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OCS Government Support Programs
Generic R&D
Magnet
Magneton
Competitive R&D
Industrial
R&D
Pre-Seed
Tnufa
Nofar
Technological Incubators
Cooperative R&D
Long-Range
R&D
Seed Fund
Applied Academic
Research
Basic R&D
Market Proximity
Bi-national Funds
(Europe FP)
International
Global Enterprises
R&D Cooperation
Bi-national Agreements
Galileo
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The Technological Incubators Program Government Response to Market Failure
Primary Objective
•Creating new startup companies that would not start otherwise
Secondary Objectives
•Transferring technology from research institutes into the industry
•Creating industrial R&D activity in peripheral regions
•Creating a technological entrepreneurial culture in Israel
•Providing deal flow for the venture capital industry
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What incubators provide to entrepreneurs?
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Incubator support
•Incubation Period: 2 years
•Average budget: ~$600K for 2 years
•Government grant: 85% of budget
•Incubator’s investment: 15% of budget
•Extended Support
•Biomed and Clean-Tech projects (3rd year)
•Projects initiated in Peripheral Incubators (Increased budget)
•Payback: 3% royalties from annual revenue
•Annual Government Budget to the Program: ~$ US 45 Million
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Incubators network
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Government funding vs. private investment 1991-2013
Private funding and VC leveraging government’s money
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OCS Grants by Technological Sectors, 2012
Source: Office OCS
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Issue – funding of Biopharma Industry
The Problem:
•Over dependence on ICT and a lack of investment in the bio-tech and Life Science area
Solution:
•Significant encouragement for the bio-tech industry in Israel via public-private funding
Description:
•Public-private funds for bio tech. Government’s $104m leveraged with a minimum of $300m private funds.
Status:
•Several funds created, managed by VCs under supervision of Ministry of Industry
•Example: $200 m fund managed by Orbimed, mainly invested in NCE, 505(b)2 and diagnostic companies
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The Problem:
•Not enough money is raised by SEED-stage companies.
•Not enough incentives for Early Stage investments
Solution:
•Allowing investment in an R&D-focused company to be reported as an expense on “day one”
•“Angel Law” – allows investment to be tax deducted
Description:
•Deducting this investment as an expense against income from all sources, spread over three years
Issue – Seed and Early Stages funding
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Issues - Minorities & High-Tech Industry
Problem:
•Low rate of Arab minority, Ultra-orthodox employees in the high-tech industries
Solution:
•Incentives for high-tech employers to employ underrepresented communities
Description:
•Adjusting the Ministry of Industry’s support programs, which subsidize cost of salaries for high-tech industry
•Examining other options to encourage employment via the Chief Scientist’s programs, i.e. specific incubators
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Israel Life Science – VC funding
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15 Years of Venture Capital Activity at a Glance
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$20 billion invested in the VC sector
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$14 billion raised by Israeli VC funds
•
M&A: $28 billion, IPO: $6 billion
•
More than 5,000 startups established
•
NASDAQ: 100 Israeli high-tech companies are listed
•
Main contributor to the economy, GDP, export, employment
•
Human capital emerged as Israel’s main resource
•
Global recognition achieved as an innovative technology center
Source IVC 2012
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High-Tech capital raising
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Israel Life Science – M&A and IPOs
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Israeli High-Tech Exit Highlights
•VC-Backed Exits up to $4.2 billion; account for 63% of total capital
•2013 M&A deals totaled $6.3 billion
•Average M&A deal in 2013: $87 million
•2013 IPO activity is back with $361 million raised by 8 companies
•Positive trends for 2014
Source: IVC Research Center
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All Israel High-Tech exits 2004-2013
Source: IVC Research Center
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Israel High-Tech exits by sector (%)
Source: IVC Research Center
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Top 5 exits in 2013 by sector
Source: IVC Research Center
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Deloitte – VC confidence survey
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France-Israel Life Science
Events and cooperation actors
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Save the dates – Bio Events in Israel Opportunities to meet israeli companies and bio actors
French Israeli Forum on Medical Robotic Tel Aviv March 23rd -24th 2015 Coordinated by Ubifrance, the Scientific Department of the French Embassy & the Israeli Ministry Of Science & Technology (MOST) Mixiii BIOMED by IATI - Israël 2015 Tel Aviv - May 12th -14th 2015 Organized by Israel Advanced Technologies Industries - French Pavilion, individual meetings coordinated by Ubifrance Israel MedInIsrael congress 2015 Tel Aviv - May 16th -19th 2015 Following Mixiii Biomed – focusind on Medical Devices + Health IT coordinated by the Israel Export Institute -
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A dedicated and adapted portfolio of services Promote French know-how Business forums, pavillons in international Trade shows, targeted and qualified B2B meetings Supports the French Innovative ecosystem (companies, start-ups, clusters) in its international expansion Technological partnerships meetings for innovative companies Partnership missions w. specialized clusters
UBIFRANCE
Supporting French companies abroad
 Providing operational information about upcoming markets and opportunities,
 Identification of the key players in each relevant market, raising awareness about French expertise,
 Matching French companies with the best foreign partners.
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France-Israel Technological partnerships and Innovation - bilateral framework ! A priority for both Israeli and French governments
At the core of the French President’s State visit in Israel in 2013 Foster bilateral innovative R&D partnerships
Since 2014 : 1 Bpifrance staff established within Ubifrance team in Tel Aviv. FIRAD France-Israel Industrial R&D program
 2 submission deadlines: End of May (over now), November 30th A wide diversity of projects submitted, amongst which:
E-health: solutions for breast cancer detection / Medical Device / New Media: Real time web content enrichment and semantic analysis / Energy: fuel production re-using industrial heat
May 2014: 15 projects at the 1st Call
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Teams covering all the process from match-making to funding
2 pilot organizations
1 support team based in Tel Aviv
2014: 2 dedicated managers representing French public institutions
Supporting and matching Israeli & French companies
…And a global coalition of institutions and networks
French Embassy in Israel, French & Israeli Ministries of Economy, Ubifrance, Tel Aviv University, French-Israeli High Council for Science & Technology…
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Save the date: French-Israeli Innovation Day
–Hosted alternatively by the French and Israeli Ministry of Economy
–1d conf. + B2B sessions, 1d on-site business tours
–ID1: Paris, December 5, 2011 – 400 participants
–ID2: Tel Aviv, November 19, 2013 – 800 participants Innovation Day 3: Paris - December 16,17 2014
–FinTech & e-Commerce
–e-Health & Personalized medicine
–Big Data & the City of tomorrow
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The French networks’ access points
Anne BAER
France-Israel Innovation and Technological partnerships expert, French Ministry of Foreign Affairs
anneb@tauex.tau.ac.il
Aurélie GUTHMANN
Country representative - Israel
Bpifrance
aurelie.guthmann@ubifrance.fr
French companies
Israeli companies
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Important actor – Israel Advanced Technology Industries – IATI www.iati.co.il
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IATI annual congress – Mixiii Biomed Israel Biomed / High-Tech congress – 12-14 May 2015
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Israel Export Institute - MedInIsrael In conjunction w. Mixiii Biomed – 16-19 May 2015
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Thank you – merci pour votre attention - toda
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