A Year Since October 7: A Situation Report on the Israeli High-Tech Sector

A Year Since October 7: A Situation Report on the Israeli High-Tech Sector
A year after the beginning of the ‘Swords of Iron’ War on October 7, 2023, the Innovation Authority is publishing a situation report aimed at examining the war’s ramifications on Israeli high-tech. As a sector that is based predominately on foreign players, high-tech is currently contending with a sensitive situation where the risk and uncertainty […]
High-Tech Employment Data
Employees: Stagnation in High-Tech Employment Over the Past Two Years In terms of the Israeli economy, high-tech’s significant contribution to the economy depends on employment in the sector. The changes related to this metric are therefore fundamental for the future of the economy. Between 2012-2022, high-tech doubled in size in terms of employees whose numbers […]
High-Tech Investments Data
No Significant Change in Startups’ Fundraising During the War A further metric that reflects the state of the high-tech sector is the capital raised by startups – capital that is used to hire new employees and to expand the business activity of the companies’ future generations. The total capital raised by technology companies in Israel […]
Conclusion and Recommendations
A year after October 7, 2023, it is clear that despite the difficult year experienced by the entire Israeli economy, the high-tech sector has demonstrated resilience. The sector’s strength is expressed by the fact that it was the fourth largest global hub in terms of capital raised since the onset of the war. At the […]

High-Tech Contribution to State Revenues

from Individuals and Companies

1. Background and Main Points
In this report, we examine the contribution of the high-tech sector and its employees to the Israeli economy. The report is the result of collaboration between the Innovation Authority and the Chief Economist Division in the Ministry of Finance. This analysis was performed during the past year and includes, for the first time, an in-depth […]
2. Methodology: Measuring High-Tech's Contribution to State Revenues
According to the definition of the high-tech sector and of high-tech companies There are several accepted approaches used to define the companies and employees of the high-tech sector in Israel. The definitions differ from each other in the number and type of companies they include. Consequently, there are also variations in the number of employees […]
3. The Contribution of High-Tech Taxation to State Revenues
In this report, we analyze high-tech taxation’s share of total state revenues. The object of the analysis is to understand how the high-tech sector and its employees contribute to the Israeli economy. The need to examine the sector’s contribution to state revenues arose against the background of high-tech’s significant contribution to Israel’s exports and GDP. […]
4. An Analysis of State Revenues from the High-Tech Sector, by Category
After having presented high-tech’s contribution to the Israeli economy via tax payments, this section analyzes the distribution and characteristics of tax payments within the high-tech sector. As shown above, 85% of the collected taxes from the high-tech sector can be attributed to the sector’s employees. In this section, we expand on the differences in tax […]
Conclusions: High-Tech Sector's Contribution to State Revenues from Individuals and Companies
This report presents an analysis of the contribution of tax payments made by high-tech employees and companies to the Israeli economy. The main findings arising from this analysis are detailed below: 1. State revenues stemming from the high-tech sector are increasing and the sector is responsible for about a quarter of the employees’ income tax […]
APPENDIXES
Appendix 1 – Main Differences Between the Approaches The information presented in this report presents two different approaches regarding the definition of the hightech sector. The first is based on the international definition as presented by the CBS in its publications (“the hightech sector”), while the second (“the high-tech companies”) is based on the companies’ […]

The State of High-Tech 2024

Introduction and Main Points
Israeli High-Tech at a Crossroads The Innovation Authority’s 2024 annual report reflects the crossroads Israeli hightech is currently facing. Over the past decade, and specifically since 2018, there has been a boom in investments in startups and new employees joining the hightech sector. During this period, high-tech has become established as the growth engine of […]
Preface
Israeli high-tech is at a crossroads where, among other things, both its resilience and robustness are being tested. The high-tech industry entered 2023 following a significant decline in investments as part of global trends, and its companies and entrepreneurs were compelled to make adjustments to the new situation. However, no one could predict the two […]
Part 1: Situation Report: Israeli High-Tech in 2024
Macro Indices Show a Moderate Increase – Investments Continued to Decline Against the backdrop of the geo-political and security upheavals in 2023, most of the macro indices in Israeli high-tech registered a moderate increase, primarily – a growth in the sector’s output and exports. The number of high-tech employees also increased, however at a lower […]
Part 2: Issues Related to the Future of Israeli High-Tech
Israeli High-Tech: Where is it Headed and How Will it Affect the Israeli Economy? As shown above, Israeli high-tech has grown significantly over the past decade. The sector has established itself as the economy’s shock absorber, especially during crisis periods, and has accounted for high proportions of the growth in Israeli GDP. Furthermore, it is […]
Appendices
Appendix 1 – Methodology for the Innovation Authority Surveys Surveys’ Objective Following the challenges faced by the Israeli high-tech sector in 2023 and ahead of the launch of the ‘Yozma 2.0’ Fund, the Innovation Authority conducted several surveys among Israeli high-tech companies and Israeli venture capital funds. The objective was to attain an updated situation […]

Israel’s State of Climate Tech 2O23

Israel’s State of Climate Tech 2O23

Introduction
Addressing the climate crisis and limiting warming to 1.5°C requires system-wide transformation; involving technology, infrastructure, governance and climate finance. Surveying global endeavors to tackle the climate crisis during the past year since the publication of our report “Israel’s State of Climate Tech 2022 Update” reveals deepened global commitments and actions on all the above fronts, […]
Foreword
In 2021, PLANETech, a non-profit climate tech innovation community and the Israel Innovation Authority – an established government agency – collaborated in the very first nation-wide evaluation of any country’s climate tech ecosystem, culminating in the writing of the first “Israel’s State of Climate Tech” report. This report had multiplying effects, not only documenting the […]
Executive Summary
The goal of transitioning to a net-zero and climate-positive economy has spurred multilateral collaborative endeavors, infrastructure planning, private and public funding, and promises of business opportunities worth trillions of dollars. The significant financial returns, together with the urgency of the climate crisis itself, means that climate tech is a rapidly maturing asset class, with increasing […]
Methodology
Climate tech companies are mapped according to the relevant climate challenges addressed by their innovation. The methodology section begins by describing the PLANETech Climate Challenge Map and then details the compilation of the database used for the analysis and the mapping procedure. Complementary information was also collected directly from climate tech startups through a survey […]
Israel’s ClimateTech Startups
Climate Tech Startups by Climate Challenge The updated mapping of Israeli startups identified a total of 784 startups that offer solutions to climate challenges, an increase of 90 startups compared to the 694 climate tech startups identified in 2022. Figure 2 shows the distribution of the startups according to the […]
Barriers to Scaling and Growth Faced by Israeli Startups
Climate tech startups face unique scaling challenges. They are mostly deep tech, requiring expensive physical assets and equipment, are capital intensive, and have long-term horizons for development from the initial proof of concept stage until commercialization. Until this endpoint, startups need to establish pilot demonstrations and are challenged by the extended period needed to progress […]
Looking Ahead
This 2023 report highlights the role of multistakeholder players in the continued growth of the Israeli climate tech ecosystem. This is expressed in both the private sector with entrepreneurs, founders, startups, investors and the corporates and businesses deploying the innovations; And in the public sector where the state fulfills several roles, acting as regulator, dominant […]

The state of hi-tech 2023

Chairman and CEO
Opening Remarks
Introduction and Highlights
A Turning Point for Israeli High-Tech or Just a Slight Blow?
High-Tech's Contribution to the Economy
Israeli High-Tech 2023 – A Situation Report The past decade has witnessed an increase in the importance of the high-tech sector to the Israeli economy. Even prior to that, high-tech was regarded as “the growth engine” of the Israeli economy, however an analysis of data from the last decade reveals that the sector has grown […]
How Many Israelis Really Work in High-Tech?
For the first time, this year’s report presents data that reveals the number of Israelis working as salaried employees in technology positions in Israel, both in the high-tech sector and in other sectors. The data relates to salaried employees in the high-tech sector, both in technology and non-technology jobs, and in technology jobs in other […]
A Global Comparison
A Global Comparison: High-tech in Israel Relies Almost Entirely on the Private Sector, and Primarily on Foreign Investors The Israeli innovation ecosystem is in direct competition with other hubs around the world for human resources, investments, and innovation infrastructures. It is important therefore to examine high-tech’s contribution to the Israeli economy not just in comparison […]
Decline in Establishment of New Startups
Is the Decline in the Number of New Startups Creating a Problem for the Israeli Economy? The introduction of the iPhone in 2007, the lower prices of cloud services, and further technological and economic changes, brought about a global growth in the rate at which new startups have been opened. Until approximately 2015, there was […]
Investments and Recruitments: Fintech - Climate
Startups’ Funding in Israel
A Superpower of Org. SW, Fintech and Cyber
The technology companies established over the past decade operate primarily in three prominent fields: organizational software, fintech, and cyber. These three fields seem to spearhead Israel’s high-tech and are of main interest in terms of entrepreneurship and investments in Israeli high-tech, as detailed further down this chapter. In short, the findings of studies we’ve conducted revealed […]
The Climate Crisis
Israel's Opportunity to Become an Exporter of Global Climate-tech Solutions?
Government's investment choice
Does the State Take More Risk with Investments in Startups Than the Private Sector? The decline recorded over recent years in investments in startups in Israel stems, among other things, from them being fields that are characterized by long and expensive development processes until products or services are released onto the market and by high […]
Appendix
Israel Innovation Authority Activities in 2022

The state of hi-tech 2022

Opening Remarks
As we do each year, the Israel Innovation Authority is proud to present its annual report outlining the current state of the Israeli innovation industry. This year’s situation report differs from previous years due to the structural changes that have occurred in the global economy in general and, specifically in the Israeli economy. These developments […]
Introduction and Main Points:
Annual Report The State of High-Tech 2022
Part A: Israeli High-Tech 2022 Situation Report
High-tech exports exceed half of all Israel’s exports for the first time – but the technology companies’ value is declining Israeli high-tech continued to prosper and to constitute the economy’s primary growth engine during the past year. The product of the high-tech sectors grew by more than 10% in 2021 and stood at 237 billion […]
Part B: What Will Enable the Next Quantum Leap of Israeli High-Tech?
The Next Quantum Leap of Israeli High-Tech: It seems as if Israeli high-tech has existed forever, but it is actually one of the younger sectors of the local economy. In a relatively brief period over the past few decades, Israeli high-tech has established itself as a significant factor in the local economy, not only contributing […]
Appendix: Activity of the Israel Innovation Authority’s Divisions
In 2021, the Innovation Authority's divisions implemented a wide range of measures aimed at advancing the growth of the Israeli innovation ecosystem. This chapter presents the main activity of the various divisions during 2021 and the way in which they translated the Authority's policy into action and specific policy tools.

Women in High-Tech 2022 - Status Report

Israel Innovation Authority’s 2021

Executive Summary
High-Tech During Covid – Innovation Authority Report 2020-2021
Is this the end of the Israeli "Start-Up Nation” era?
Israeli high-tech continued to break investment records even during the Covid crisis. Alongside the industry’s maturation, the number of new startups is declining sharply, the number of seed rounds is stagnating, and the Innovation Authority’s budget has been eroded. How will these changes influence the industry’s future and what can the government do to preserve Israel’s competitive advantage?
What Will the Future High-Tech Generation Look Like?
Israeli high-tech is undergoing a transformation – its employees are not as young but are still based in Tel Aviv. One tenth of employees in Israel work in high-tech and pay a quarter of the country’s total income tax. One in every four students is studying a technology subject and will soon attempt to integrate into the high-tech industry, however the Covid crisis has made the industry tougher for women and inexperienced juniors. Will they find work after completing their studies?
How can Israeli High- Tech Help Rehabilitate the Economy?
Guaranteeing the Israeli economy’s continued prosperity and the leading global position of its high-tech industry depends on several key factors. One of these is a state policy that supports the creation of infrastructures necessary to develop innovative technologies and train the next generation of high-tech employees. At the same time, significant changes in the government’s policy and regulatory perception will aid Israel’s recovery from its largest ever economic crisis by implementing Blue & White technology solutions.
Activities of the Israel Innovation Authority’s Divisions
The Israel Innovation Authority strives to provide solutions for the various challenges facing the Israeli innovation ecosystem via six operative divisions. Each division is focused on specific tasks and clients and offers a unique set of tools for contending with the different challenges throughout the technology lifecycle.

Israel’s State of Climate Tech 2021

Looking Ahead
Israel has the capability to contribute substantially to global emission reductions. Locally developed and adopted technologies are already responsible for emission reductions around the world that may be greater than the emissions the country itself generates. Increased adoption on a nationwide scale and increased global deployment would further increase Israel’s internal and global contribution to […]
Foreword
Dror Bin, CEO of Israel Innovation Authority & Uriel Klar, Director of PLANETech The climate tech journey gives us an opportunity to tread new paths and create new value. To realize this potential, however, we must all continue to work together. “Israel’s State of Climate Tech 2021” is a powerful source of motivation for doing […]
Israel as a Global Climate Tech Player
Several indices were examined to evaluate Israel’s role as a global climate tech player. A recent global climate tech investment report identified and ranked the top 10 global climate tech hubs according to geographics and the total fundings obtained by the companies headquartered there.14 Silicon Valley, Boston, and Berlin led the rankings, while Israel did […]
Methodology
This report assesses the current and future potential of Israeli innovation to play a central role in tackling the global climate change challenge. By undertaking the first mapping of Israeli companies developing technologies aimed at climate change mitigation and adaptation, the report reveals the current strengths of Israeli climate technology innovations. An AI-driven analysis of global climate […]
Opportunities & Barriers to Climate Tech in Israel
In this section we reflect on the existing and potential strengths of the Israeli climate ecosystem and the global impact of the various climate tech domains. We highlight a number of technologies that provide solutions to global climate challenges and in which Israel is well positioned. This list is by no means exhaustive, and there […]
Israel’s Climate Tech Ecosystem
The mapping procedure, described above, revealed nearly 1,200 Israeli companies that provide solutions to climate challenges. A distinction was made between 637 startup & growth companies and other types of companies. The former category included all the companies founded after the year 2000 and which have raised investments, as well as young companies – founded […]
Capital Investments
As described above, the climate tech domain encompasses a broad variety of solutions which directly or indirectly address global climate challenges, that are based on varied technological platforms, and which are associated with many industry sectors. The resultant added complexity in attributing capital investments to climate tech from available data sources enables only partial retrieval […]
Introduction
Climate Change – Averting limate Catastrophe Climate change represents an urgent and potentially irreversible threat to humanity and to the planet. The Sixth IPCC Report demonstrates the unequivocal role of human influence in the warming of the atmosphere, ocean, and land, leading to changes in the climate system as a whole, as well as frequency […]
Executive Summary
Technological innovations play a crucial role in the global challenge to mitigate and adapt to climate change. Israel is renowned as a global leader of technological innovation and this report sets out to examine, for the first time, Israel’s state of climate tech and the potential of its “problem solving” entrepreneurs to provide solutions for […]

Israel Innovation Authority's 2019

Innovation Report 2018