Israel Innovation Authority Announces NIS 35 Million Investment to Boost High-Tech Expansion in the Negev and Galilee

Addressing challenges stemming from ongoing war, funds allocated to support high-tech companies in opening new branches and hiring local talent in the North and South of Israel

In a significant move to promote regional development and equal opportunities, the Israel Innovation Authority, in collaboration with the Ministry for the Development of the Negev, Galilee, and National Resilience, the Tekuma Authority, and the Ministry for Social Equality, announced today a NIS 35 million fund aimed at encouraging high-tech companies to expand into Israel’s war-battered Northern and Southern regions. This funding, part of the “Leap to High-Tech” program, will support companies in opening new branches and hiring local talent, fostering economic growth and reducing disparities across the country.

Under the program, companies will be able to receive financial support for practical training for inexperienced employees and funding for experienced employees who will mentor the new hires through on-the-job training. The companies that are selected are expected to launch their programs within six months of receiving the grant, with an execution period of 12-24 months.

As part of the support, high-tech companies may receive:

• Up to 70% of the approved budget for a program with a scope of up to NIS 1 million.
• Up to 50% of the approved budget for a program with a scope of up to NIS 5 million.
• Up to 30% of the approved budget for a program with a scope of up to NIS 15 million.

Companies interested in expanding their operations to the Negev, Galilee, and periphery regions can submit applications in response to the call for proposals until September 29.

Simultaneously, the Investment Authority at the Ministry of Economy and Industry has launched a program designed to assist in the establishment and relocation of knowledge-intensive, high-salary operations for businesses in the industrial and high-tech sectors in national priority areas and Jerusalem. Companies may receive a grant of up to 30% of the cost of new employees’ salaries. The assistance includes covering up to 30% of the employees’ salaries, with the call for proposals open for submissions until September 16, 2024.

Yitzhak Wasserlauf, Minister for the Development of the Negev, Galilee, and National Resilience said: “Strengthening employment in the Negev and Galilee is a priority. The state has a vested interest in encouraging companies to expand their activities to the Negev and Galilee, thereby increasing quality employment and allowing talented young people to remain and build their future in these regions, while also attracting new, strong populations to the area.”

Yossi Shelley, Director-General of the Prime Minister’s Office and Acting Head of the Tekuma Authority said: “The Tekuma Authority is allocating NIS 7 million as a dedicated budget for high-tech companies that will open branches in the Tekuma region. We are pleased to collaborate with the Israel Innovation Authority and our partners to create high-paying job opportunities in the periphery.”

Dror Bin, CEO of the Israel Innovation Authority said: “The ‘Leap to High-Tech’ program is designed to reduce the risk for high-tech companies considering following the path of many others and opening operations outside of their main headquarters. This program aims to expand the human capital available to companies and also assists local entities in the periphery in offering high-tech companies an attractive package for establishing new activities. We see this program as a unique opportunity to expand the operations of high-tech companies while contributing to the development of high-tech across the country.”

Yohanan Mali, Director-General of the Ministry for the Development of the Negev, Galilee, and National Resilience said: “Especially during these complex times, we see great importance in developing human capital in the Negev and Galilee as a significant anchor for the growth of high-tech companies. This program marks a turning point in the development of the Negev and Galilee, strengthening economic and employment resilience. It is another step we are taking in partnership with other entities to promote economic development and demographic growth in these regions.”

Hassan Tawafra, Head of the Economic Development Authority for the Minority Sector at the Ministry for Social Equality said: “The Arab community is undergoing significant changes, and there is a high-quality human capital within the Arab community with the skills needed to integrate into high-tech companies across various professions. Opening branches will allow companies to access this candidate pool and facilitate the integration of Arab workers into the industry. Government Decision 550 (the Five-Year Plan for the Arab Community) allocated dedicated budgets for this purpose, enabling companies that open branches in Arab towns to receive financial support to achieve this goal.”