The development of Israel’s medical cannabis incubator will take place in the small Negev town of Yeruham. Its mayor noted that the city’s dreams of being a medical cannabis “production capital” are now being realized. The incubator will serve as an anchor for innovators around the world and will further monetize the activities of entrepreneurs who are already in the process of land allocation.
The Israel Innovation Authority and Economy Ministry announced that a high-tech incubator for the development of Israel’s medical cannabis will be established in Yeroham.
With an estimated investment of $50 million (₪150 million) in the small Negev town, the cash to operate the government-backed CanNegev incubator was given to the nonprescription pharmaceutical giant, Perrigo, and Israeli medical cannabis cultivator, BOL Pharma.
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Israel’s medical cannabis Incubator as an anchor for innovation
PraPraising “positive news” for the local council, Yeroham Mayor Tal Ohana said, “The incubator will serve as an anchor for innovators around the world and enhance the activities of entrepreneurs, who are already in the process of allocating land for the establishment of cannabis extraction plants in Yeroham.”
According to a recent report by Global Market Insights, revenues from the global legal cannabis market are expected to exceed $59 billion by 2025, driven by a growing demand for cannabis and its by-products.
Although the government approved the export of locally grown medical cannabis in January 2019, reform has since stalled and exports have yet to begin.
“We will find new start-ups with breakthrough technologies, make seed investments, and equip them with all the tools needed to succeed in the international marketplace,” said Jon Medved, founder, and CEO of Jerusalem-based OurCrowd. “The member companies of the consortium have a great deal of knowledge and experience in the field of medicine and medical cannabis, and this will be made fully available to innovators.”
Israel to place more incubators in outer areas
In addition to the medical cannabis incubator, the Innovation Authority and the Ministry of Economy also announced the establishment of two other incubators located in peripheral areas.
The incubators are expected to assist a total of 130 startup companies in the coming years.
An Industry 4.0 Incubator will be established by “I 4 Valley” in the northern city of Karmiel and Galilee, partnering with the region’s academia and industry to promote entrepreneurship in advanced industries. Incubator shareholders include Wipro Givon, Kusto (Tambour), Keter Plastic, Trellidor, Flying Cargo and Klil.
A third incubator will be built in Idan Hanegev Industrial Park, with the aim of innovating in the fields of clean technology, agricultural technology, plastics, and advanced industry.
The incubator, located near the large Bedouin city of Rahat, is backed by investment companies AlphaCapital and Netafim Holdings Hatzerim, as well as leading companies including SodaStream, Revel, Netafim, Tami (Israel Chemicals) and DolavPlasticProducts.
An important milestone for Israel’s medical cannabis industry
“The establishment of technological incubators in the periphery is an important milestone that is expected to generate significant economic value in Israel’s medical cannabis industry, attracting numerous investments and human capital,” said Economy Minister, Eli Cohen.
“The establishment of these centers will result in an increase in high-tech companies opening investment and development operations for Israel’s medical cannabis industry. Future increases in the number of active high-tech employment center mean an increase in high-return jobs and a decrease in the migration of professionals to the center of the country.”
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First published in Noticias de Israel, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
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