The Israeli government will invest in transportation technology startups.

(Reuters)- The Israeli government announced on Wednesday that it will invest 30 million shekels ($8,4 million) annually in a pilot program aimed at improving transportation and developing the country's high-tech industry.

The program seeks to promote companies that will impact the transportation sector in Israel and globally, the Israel Innovation Authority said in a statement.

The agency is working in conjunction with the Ministry of Transport and the Prime Minister's office on the initiative.

The program is aimed at Israeli technology companies in the transportation sector. They will receive financial support of 20 to 50 percent for approved research and development expenses—with additional support of up to 75 percent of R&D expenses for projects that can demonstrate significant potential to optimize and improve transportation within Israel.

Companies will repay their donations to the Israel Innovation Authority through sales royalties only if an initiative has been commercialized.

(By Steven Scheer)