{"id":4364,"date":"2023-02-06T07:32:00","date_gmt":"2023-02-06T07:32:00","guid":{"rendered":"https:\/\/innovationisrael.org.il\/en\/?post_type=report&p=4364"},"modified":"2023-08-15T15:09:17","modified_gmt":"2023-08-15T15:09:17","slug":"from-a-high-tech-industry","status":"publish","type":"report","link":"https:\/\/innovationisrael.org.il\/en\/report\/from-a-high-tech-industry\/","title":{"rendered":"From a high-tech industry"},"content":{"rendered":"\n
In recent decades, Israel has established itself as a global hub of innovation that excels in tech development and produces groundbreaking companies. We often cite the extraordinary accomplishments of yet another Israeli company that has developed a new, revolutionary product; nevertheless there seems to be a significant discrepancy between the advanced high-tech industry and day-to-day life in Israel. Most people in Israel do not feel that they are living in a \u2018technological\u2019 country when they are on their way to work, when dealing with bureaucracy, or when shopping at chain stores. This is more than just a feeling \u2013 substantial sectors in Israel, such as transportation, commerce, construction, education, and public services, are still lagging behind other Western countries. A Londoner, for example, might take advanced services for granted, such as taking an Uber, a contactless or cellphone payment at a coffee shop, broadband browsing, efficient online communications with public entities, and fast, efficient construction.<\/p>\n\n\n\n
Comparative data indicates that Israel excels at creating innovation – meaning technology development \u2013 but is falling behind developed countries in the consumption of innovation \u2013 meaning technology assimilation. For example, in the Global Competitiveness Index published by the WEF (World Economic Forum), Israel has consistently been a leader in a number of parameters that reflect the strength of its innovation ecosystem, such as its heavy investment in R&D and quality scientific research. On the other hand, in other parameters included in the index that characterize innovative economies, such as digital infrastructure and the technological capabilities of its population, Israel is coming up short in comparison to other developed countries (see diagram 1).<\/p>\n\n\n\n
A prominent sector where there is a substantial discrepancy between technological developments and the penetration of innovative technologies in people\u2019s day-to-day lives is transportation. Despite impressive Israeli developments \u2013 including apps like Waze, Moovit, and other groundbreaking products like Mobileye \u2013 transportation solutions made available to the Israeli population are very limited.<\/p>\n\n\n\n
We believe that increasing the penetration of advanced technologies into day-to-day life in Israel is critical for economic prosperity and for improved quality of life. If Israeli innovation doesn\u2019t break through the confines of the high-tech industry, this innovation will only be accessible to small, distinct segments of the population. In our previous annual report, we pointed to the need to increase the number of employees in innovation-driven companies \u2013 so that more employees would benefit from high productivity, high pay, and challenging work. In this chapter, we will discuss the need to expand Israeli innovation even further, to function as an engine to improve the lives of its population as a whole. To this end, Israel must progress from a startup nation to a smartup nation \u2013 a smart and technological economy that excels both in developing innovative technologies and in implementing them in all aspects of life.<\/p>\n\n\n\n
The importance of this change becomes even clearer in light of the fast-paced technological changes taking place in all fields of human activity: technological innovation spurs new products and industries, but at the same time, makes existing industries obsolete. The Israeli economy is not immune to these processes, as evidenced in difficulties that several business sectors are currently facing. Consequently, the Israeli government must lay the necessary groundwork to harness new technologies to improve the quality of life in Israel and to enhance the prosperity of its business sector.<\/p>\n\n\n\n
In this chapter, we will discuss the origins of the discrepancy between Israel\u2019s capabilities in technological development and its ability to adopt and assimilate these developments in the local economy, and we will present viable paths to bridge this gap. In particular, we will describe the Innovation Authority\u2019s policy to increase the link between Israel\u2019s high-tech industry and its other business sectors, and we will discuss the importance of supportive regulation both for the development of innovative technologies and for their assimilation into the economy. In the final section of the chapter, we will present the vision of several government ministries on that ways that innovation would upgrade their respective fields.<\/p>\n\n\n\n
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