Israel: A New Tech Hub

Israel has emerged as a major player in the tech startup scene, receiving 28 times more capital flow than the U.S. on a per capita basis in 2021. Israel’s high-tech companies raised $14.95 billion in 2022. Israel is also ranked third in the world for the number of AI and machine learning startups, and 1 out of 3 cybersecurity unicorns in the world is an Israeli company. 

Israel invests 4.1% of its GDP into R&D, which is double the OECD average, and it is ranked second in the world for R&D expenditure per capita.  It has also created a haven for entrepreneurs and innovators through various government programs and tax incentives. These include 30+ grants and tax incentive programs for R&D, employment aid programs, intellectual property incentives, and angel investment tax benefits. The Abraham Accords, signed on September 15, 2020, have also extended Israel’s economic relationships in the Middle East. Notable Israeli startups include OverWolf, Torq, Justt, TytoCare, Ermetic, Waze, and Mobileye. OverWolf provides third-party developers with the ability to create extensions and add-ons for computer games, while TytoCare enables comprehensive remote testing and medical monitoring of patients in their homes, providing opinions from expert doctors around the globe. Mobileye is developing technology to create a future of autonomous driving.

How Israel Has Emerged on the Tech Scene