NIS 40 Million Investment Planned for Israel’s National Space Tech Lab

Israel is launching a major initiative to expand its role in the global space economy, with a NIS 40 million ($12 million) investment to establish a national research and development laboratory for space technologies, officials announced Monday.

Jointly backed by the Israel Space Agency and the Israel Innovation Authority, the new R&D lab aims to assist startups and mature companies in testing space-bound technologies under realistic conditions eliminating many of the cost and regulatory barriers that typically hinder development.

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

The lab will be open to private and academic developers, allowing companies to test smart sensors, communications tools, and other payloads destined for orbit. Officials say the program will reduce market launch expenses by up to 35% for selected firms.

The government will fund between 55% and 66% of the costs for the winning bidder chosen to operate the lab. The investment is expected to support the launch of at least 15 Israeli payloads into space over the next three years.

Uri Oron, Director of the Israel Space Agency, called the program a “launch window for the next generation of Israeli innovation.” He noted the lab would give smaller players access to infrastructure traditionally reserved for defense contractors or large corporations.

Aviv Zeevi, head of innovation infrastructure at the Israel Innovation Authority, said the lab would also serve as a centralized hub for testing and regulatory approvals, facilitating multi-device launches and smoother collaboration with global aerospace leaders.

Israel’s space tech sector has seen rapid growth, now home to over 100 companies that have raised more than $700 million in recent years. The launch of Dror-1, Israel’s most advanced communications satellite, aboard a SpaceX Falcon 9 in July marked a new milestone.

Officials say the new lab will help ensure Israel’s continued prominence in the rapidly evolving space economy. Share this article or subscribe to our newsletter for updates.