Israel has become one of the largest tech startup nations in the world. This is due to factors like the Abraham Accords and Israel being home to research and design (R&D) centers for major tech companies. Various known Israel startups, companies, and influential people show the growing influence of Israel on the world tech stage proving it to be a known nation driving innovation and entrepreneurship.
To understand how Israel emerged as a tech startup nation one can look at the R&D and innovation centers of numerous hightech companies. Companies like Amazon, Apple, and Facebook have established R&D centers in Israel that helped Israel raise to #2 in the world for R&D expenditure per capita. Further, Tel Aviv, Israel’s largest city is home to innovation centers of major companies like Volkswagen, Apple, and Citi.
Tel Aviv is the 7th largest startup ecosystem in the world, helping lead the country to become a major tech player. This resulted in an increase in the startup value (now at $120 billion) and an increase in patent count (up 169% from 2021). These two factors have proven Israel to be a major player in the startup tech world shown by the fact that $14.95 billion was raised by Israel’s high tech companies and start ups.
Israel’s government programs and tax incentives draw in businesses and allow for the country to be a haven for tech startups. There are 30+ grant and tax incentive programs for R&D like conditional grants, reduced tax rates, and tax exemptions. Further, the Yozma government program, intellectual property incentives, and the $70 million program helped promote entrepreneurship in Israel. Factors like these incentivize startups to grow in Israel.
Another important factor that is resulting in Israel becoming an emerging tech start up nation is the influence of the Abraham Accords. The Abraham Accords extended Israel’s economic influence in the Middle East which resulted in the creation of millions of new jobs, furthering the entrepreneurial spirit.
The success of Israel as a tech start up nation is being proven by the number of new tech start ups that are present in the country. Notably, 1/10th of the world’s unicorns are currently from Israel. These startups bring in millions of dollars in funding. Some notable startups in Israel include Overwolf, bringing in $150 million in funding and Torq bringing in $78 million in funding.
Israel’s rich tech ecosystem was further noted in the OurCrowd 10th Annual Global Investor Summit. At this summit 943 entrepreneurs were present along with over 300 press, bringing in $2.1 billion in commitments.
Israel has a number of influential people who continue to influence the tech sector and increase innovation in Israel. Yossi Vardi, Gil Shwed, and Daphne Koller are among the notable Israelis influencing the tech industry.Israel has a proven track record of innovation and entrepreneurship, proving its place in the tech scene as a startup nation.
To learn more about how Israel received 28 times more capital flow than the US and has proven itself to be an influential tech startup nation, see more in the infographic below: