Overview: Israeli High-Tech in 2025

After two years of slowdown in Israeli high-tech, the data presented in this report reflects recovery and return to a growth trajectory in the sector. Despite a complex security and economic environment, the sector demonstrated exceptional resilience and once again proved its strength as the primary “growth engine” of the Israeli economy. High-tech output recorded […]

Preface

2025 will be remembered as a year in which Israeli high-tech once again demonstrated its unique strength to not only withstand external shocks with rare resilience, but also to flourish in times of uncertainty. Against the backdrop of two years of prolonged war on multiple fronts, geopolitical turbulence, and structural changes in global capital markets, […]

State of High-Tech 2026: Macro

In 2025, High-Tech Output Grew in Real Terms By 8.2% And Contributed 50% To Economic Growth In 2025, high-tech output totaled NIS 352 billion, up in real terms 8.2% from 2024 (NIS 324 billion). High-tech output also increased as a share of GDP. In 2025, high-tech accounted for 18.3% of GDP,1The calculation of high-tech’s share […]

Part 1: High-Tech Employment

More than 400,000 Employees in Israeli High-Tech in 2025: An Increase of 2.3% Compared to 2024 The number of employees in Israel’s high-tech sector increased from 210,000 in 2012 to 400,000 in 2025. This followed a slight decline in 2024, when the number of high-tech employees stood at 391,000. Alongside the increase in employment, this […]

Part 2: Companies

An Increase in the Number of New Startups Established in the Past Two Years Since 2014, a persistent global decline has been recorded in the number of startups established each year, a trend also evident in Israel. During the past 2 years, we see for the first time, an increase in the number of startups […]

Part 3: Investors

47% of R&D in Israel in 2023 Was Funded by Foreign Investors The chart here presents the distribution of expenditure on research and development (R&D) in the business sector by funding source. Total expenditure in each country represents 100% of investment in business-sector R&D, divided into four main sources: the local business sector, foreign funding, […]

Appendices