Microsoft, Israel govt in start-up support deal

TEL AVIV (Reuters) - Microsoft on Wednesday signed a deal with Israel's government to establish a joint programme to give Israeli start-ups financial and technological support from the US software giant.

Microsoft forged the deal with Israel's Office of the Chief Scientist during chairman Bill Gates' first ever visit to Israel. Gates later will meet with Israeli Prime Minister Ariel Sharon.

Microsoft will provide US$1.4 million in funds over three years.

Companies chosen to work with Microsoft will initially receive technical consultation on Microsoft products, early exposure on future Microsoft software, technical advice on its open platform and consulting advice on intellectual property protection, Microsoft said in a statement.

In later stages, Israeli businesses cooperating with Microsoft would receive joint marketing and public relations as well as business development and additional exposure to international markets.

Gates in a statement called Israel a "technology powerhouse" and said Microsoft, which has an Israeli branch, would continue to assist local companies that develop innovative technologies.

Israel has made similar deals with other global technology firms. In July, it signed a deal with software giant Oracle to establish a technological support centre for Israeli start-ups.

"Within the framework of this programme, Israeli companies have the possibility to link up with international companies and benefit from the advantages that these companies offer in areas of research and development and commercialisation," said Industry, Trade and Labour Minister Ehud Olmert.