NIS 16 Million to Open New Tech Companies' Branches Across the Country

Public-private partnership secures a total of 29 million NIS investment to boost high-tech in peripheral regions

The Israel Innovation Authority announced today the approval of 15 projects under its “Startup for High-Tech” program to establish new branches of high-tech companies in priority areas across Israel, spanning from the north to the south. The initiative, undertaken in collaboration with the Ministry for the Development of the Negev, Galilee, and National Resilience; the Ministry for Social Equality (as part of the 550 Five-Year Plan); the Tkumah Directorate; and the Ministry of Jerusalem and Heritage, represents a combined investment of 16 million NIS from government ministries and 13 million NIS in private funding, amounting to a total of approximately 29 million NIS.

The selected projects aim to establish the new high-tech branches within six months, with an operational period of 12-24 months. The goal is for these branches to continue operating independently after this period, contributing significantly to the development of peripheral regions and strengthening the high-tech industry as a whole.

Winning Projects Include:

1. “ITWorks Empowering People”: This company specializes in recruitment, mentoring, and employment for underrepresented populations. Branch offices will be opened in East Jerusalem, Julis, and the Triangle region.
2. “Place.IL Association”: Focused on integrating underrepresented populations into leading high-tech companies, new branches will be established in the Tkumah region.
3. “Or Movement”: Supporting the establishment of high-tech branches in the western Negev and Tkumah region.
4. NorthMed Innovation Center in Sakhnin: In collaboration with Gissok, new branches specializing in VLSI and other high-tech fields will be established in northern peripheral areas.
5. TSG IT Advanced Systems: Developing control, monitoring, and emergency preparedness systems, a branch will be opened in Ariel in partnership with the Innovatech Innovation Center.
6. SeaNovation Eilat Eilot Ltd.: Partnering with Qualitest to open a branch in Eilat.
7. Qassem High-Tech Park Ltd.: Partnering with SUNUP to establish branches specializing in smart home technology and cyber analytics, in collaboration with CyberArk.
8. Desert Innovation for Desert and climate technologies: Establishing two branches in data and drone technologies in collaboration with Tech19 and Negev19.
9. Techlinic Innovation Center: Opening development team branches in East Jerusalem.
10. NorthMed Innovation Center: Establishing six branches in the northern periphery.
11. GSOC in collaboration with the Golan Economic Corporation: Opening a branch in the Golan Heights specializing in ASIC VLSI.
12. Nistec Merkaz Ltd.: Opening an R&D branch in the Golan Heights.

According to the Israel Innovation Authority’s 2024 annual report, most growth in high-tech employment in Israel stems from research and development roles, primarily concentrated in central Israel. At the same time, the past year has seen a significant decline in available positions, particularly for juniors without prior experience. This challenge makes it difficult for underrepresented populations and peripheral regions to gain the initial experience necessary for entering the industry.

The “Startup for High-Tech” program seeks to address this trend by creating new employment opportunities in peripheral regions, aiming to expand the geographic distribution of Israel’s high-tech industry and the available human capital. The program will help juniors gain practical experience through internships of at least six months, allowing them to integrate into the companies they intern with or gain valuable experience for other roles in the high-tech sector.

The program offers financial support for several months to companies and organizations hiring inexperienced employees (juniors) in new branches located in peripheral areas. Additionally, funding is provided for experienced seniors to mentor juniors under the “on-the-job training” (OJT) model and for the onboarding process. The winning projects are expected to begin operations and hire initial employees during 2025-2026, with the branches expected to expand further, creating long-term high-tech employment anchors in these regions.

Yitzhak Wasserlauf, Minister of the Negev, Galilee and National Resilience: “One of the central elements in reducing disparities in the Negev and Galilee is bringing quality employment. Such employment attracts a young and vibrant population, ensures ongoing demographic growth, and strengthens the entire region. I commend the governmental collaboration to enhance employment in these regions and call on all government entities to expand these commendable efforts in the coming years.”

Dror Bin, CEO of the Israel Innovation Authority: “The ‘Startup for High-Tech’ program is a true milestone for the high-tech industry. It reduces the risk for companies considering opening operations outside the central headquarters, enabling the expansion and diversification of human capital. This innovative initiative assists local entities in the periphery in offering high-tech companies attractive packages to establish new operations. We view this program as a unique opportunity to expand high-tech activities and accelerate its development across Israel.”

Shimon Elbaum, Director General of the Ministry of Jerusalem Affairs and Heritage: “Our significant investment in East Jerusalem’s development places a special emphasis on advancing quality employment among residents, including high-tech and technological innovation. We will continue to invest effort and resources in attracting high-tech companies to Jerusalem, in all neighborhoods of the city.”

Yossi Shelley, Director General of the Prime Minister’s Office and Head of the Tkumah Directorate: “The Tkumah Directorate sees the opening of new high-tech branches in the Tkumah region as a lever for economic and social growth, as part of the regional rehabilitation and development program to strengthen technology and advanced knowledge-based economy. These new branches expand employment opportunities in the region and provide significant horizons for its young residents while positioning the Tkumah region as an attractive hub for high-tech industries.”

Merav Stern, Director General of the Ministry for Social Equality and Promotion of the Status of Women: “The new program is a significant step towards promoting equal opportunities in Israel’s high-tech industry. Opening branches in the periphery, East Jerusalem, and the Arab sector will enable women and diverse populations to integrate into quality roles in the industry while maintaining work-life balance. The ministry places great importance on integrating women, particularly young mothers, into the evolving high-tech sector in peripheral areas. We will continue to work with our government partners to expand quality employment opportunities and reduce social and economic gaps in Israel.”