The Israeli high-tech industry raised $9 billion in external growth capital last year. The sector is facing increasing uncertainty. These developments have implications for the broader Israeli economy.
This is according to the government agency Israel Innovation Authority (IIA) in retrospect.
Israel’s high-tech industry accounts for more than half of the country’s exports, a third of workers’ income taxes and a fifth of gross domestic product (GDP).
The level of investment is still at the level of two years ago, nine billion dollars, which puts the country behind Silicon Valley and New York, but ahead of London and Paris.
IIA expresses its concern: “Since 2022, growth in the number of employees in the high-tech sector has virtually ground to a halt. The number of employees has remained stable at around 400,000, representing about 11 percent of Israel’s total workforce. This marks a worrying development for an industry that has long been seen as the engine of economic growth and innovation.”
A recent report shows that while R&D roles within the industry are still growing, employment in product and business functions is declining. A cause for mild concern. Israel’s Minister of Innovation, Science and Technology, Gila Gamliel, emphasizes the importance of continued growth: “It is not enough to remain stable. We must strive for prosperity and growth, especially in the face of global competition.”
Dror Bin, CEO of the Israel Innovation Authority, added: “To ensure that the high-tech sector grows rapidly after the crisis, we need to invest more in young startups, early-stage companies and diverse fields of technology. It is not enough to focus only on large companies and cybersecurity.”
Source: www.emerce.nl
