Israel has made a name for itself in the tech world by becoming one of the most highly successful centers for tech startups in the world. Israel is ranked second, out of all nations, in both R&D expenditures and in world venture funding. Tel Aviv, a major city in Israel, is known as one of the largest startup hubs in the world (ranked 7th). How has Israel grown its tech business so substantially over the past few years?
Many incentives exist to encourage the development of business in Israel. The Israeli government created a program called Yozma in 1983 that promised to match external investments in startups founded in Israel. Additionally, there are more than 30 grants and tax incentive programs in place that promote entrepreneurship. Furthermore, the intellectual property of Israeli startups acts as an asset that leads to more attractive dividends and tax rates.
A recent international agreement that assisted Israel in its rapid rise to success in the world of business was the Abraham Accords. This deal was signed in 2020 by Israel, Bahrain, the United Arab States, and the United States of America. The Abraham Accords allowed Israel to strengthen its economic power in the Middle East, while also promising an increase in creation of jobs.
A number of world-renowned startups are in fact Israeli companies. A few of the most notable include TytoCare, OverWolf, and Waze, with $155 million, $150 million, and 67.1 million in funding, respectively. Additionally, 10% of the world’s ‘unicorns’ (or companies that are valued at more than $1 billion) come from Israel.
Who are the must-know figures leading the charge of Israel’s economic growth? Daphne Koller and Avi Wigderson are two notable individuals. These two people are impressive scientists who have won awards (the MacArthur Fellowship award and the Abel Prize, respectively) for their innovations and contributions.