Israel is an entrepreneurial powerhouse and a hotbed of pioneering technologies. It offers a profitable business opportunities and high returns on investment.

Israel tops global indexes for economic competitiveness. It has a striking concentration of innovative people, a culture that promotes experimentation, and a governmental eagerness to create supportive conditions for investors.

 

 

The World's Leading Multi-Nationals Have Chosen Israel


Israel is...

# 1 in the World for:

  • Innovative Capacity (IMD Global Competitiveness Yearbook 2013)
  • Business Expenditure on R&D
  • Total Expenditure on R&D
  • Central Bank Policy (4th year in a row that it leads the top place) 
  • Scientific Research
  • Public & Private Sector Ventures
  • Total Expenditure on Education
  • Development & Application of Technology
  • Cyber Security
  • Information Technology Skills
  • Knowledge Transfer
  • Scientific Institutions (WEF Global Competitiveness Yearbook 2013-2014)
  • Annual Percentage Change of Inflation

# 2 in the World for:

  • Entrepreneurship
  • Start-up Ecosystem (ahead of New York, Los Angeles, Seattle, Boston and London)

# 3 in the World for:

  • Innovation Globally (out of 148 economies, WEF 2013-2014)
  • Scientific Infrastructure

  • Flexibility & Adaptability (IMD 2013)

More...

Innovation Capital

Israel has the highest concentration of high-tech companies in the world outside Silicon Valley.

  • Israel's 4,000 start-up companies produce innovations and offer solutions to some of the most pressing global challenges.
  • As of 2009, 63 Israeli companies were listed on the tech-orientated NASDAQ - more than from Europe, Japan, Korea, India and China combined.
  • Of Israel's 230,000 hi-tech workers, 39% work in the R&D departments of multinational corporations. (Source: The Startup Ecosystem Report 2012)

Global Technological Leader

Israel is a world leader in research collaboration between university and industry, and is ranked in the top 10 for collaboration between university and industry by the World Economic Forum Global Competitiveness Yearbook 2013-2014.

  • Close ties between academia, industry and government enable scientific innovation to be swiftly translated into marketable products and profitable business initiatives.
  • Israel invests heavily in education and research, dedicating 4.38% of its GDP to R&D, the highest percentage in the world (OECD Science, Technology and Industry Scoreboard 2013).
  • Government agencies like the Office of the Chief Scientist of the Ministry of Economy, a network of incubators for very-early-stage technology start-ups, and an active private venture capital system, provide extensive support for new ideas and technologies.

Flourishing Venture Capital Market

Israel's thriving start-up industry is complemented by a flourishing venture capital market, which totals $1 billion (MIT Tech Review).

  • The World Economic Forum Global Competitiveness Yearbook 2013-2014 ranked Israel 8th for venture capital availability out of 148 economies.
  • IMD - The International Institute for Management Development (2013) ranked Israel seventh.
  • The Wall Street Journal (2013) said that Israel outperforms any other country in VC volume per capita.
  • Israel's venture capital availability is a symbol of the breadth of its innovative industries and of the highly-efficient financial sector underpinning them.
  • The thriving VC market further points to Israel's highly-developed local venture capital sector, significant annual foreign investment, and reflects its sound banking system and well-regulated securities exchange.

Flexible, Creative Economy

Flexibility and adaptability to change are widely-considered primary factors affecting business performance.

  • IMD's world competitiveness index places this parameter among the leading indexes of economic competitiveness.
  • Creativity and flexibility are the fuel of innovation, and a high degree of responsiveness to changing business environments is crucial to thriving enterprises in today's dynamic global market.
  • Israel's ability to swiftly translate market demands into organizational action explains why Israel is broadly-recognized as a capital of innovation.

Diversity

Israel's diversity and multi-cultural environment extend naturally from the fact that its population consists of individuals with origins in over 100 different countries spanning five continents.

  • In addition to Hebrew and Arabic, Israel’s two official languages, many Israelis are fluent in English as well as numerous other languages.
  • Israel's different cultures make Israel a fascinating place to visit and to do business. 
  • Risk-taking and optimistic, it is only natural that it is the source of so much innovation.

Support

Enshrined in its legislation through laws for the encouragement of capital and industrial R&D, the State of Israel seeks to offer maximally supportive conditions for companies investing in Israel.

  • Israel encourages international and local investment by offering conditional grants of up to 24% of tangible fixed assets, reduced tax rates, tax exemptions and other tax related benefits through the Law for the Encouragement of Capital Investments.
  • Israel offers one of the world's most advanced technological infrastructures along with the services required to conduct business efficiently and effectively.
  • Israel boasts a sophisticated communications system, a reliable energy infrastructure, a well-developed transportation system with modern international gateways.
  • Israel protects trademarks, patents and other intellectual property.
  • Israel has a highly-developed and transparent financial system as well as a legal system based on common and corporate law.

Scientific Excellence, Industrial Profit

Israel's scientific excellence makes it a preferred spot for leading multinationals to establish R&D centers.

Exceptional Workforce

Israelis are behind a string of innovations across sectors and industries, including in medical equipment patenting, where Israel leads the world in patent registrations.  

Nobel Super Star

Israel had eight Nobel laureates, including six in chemistry, over the past decade.

Resilient Economy, Security for Investors

A string of indexes suggesting Israeli economic resilience helps ensure global investors feel secure about their investments in Israel.

  • IMD 2013 ranks Israel 4th for the resilience of its economy, while WEF 2013-2014 ranks it 6th for investor protection out of 148 economies.
  • Israel's policy of removing barriers to trade and encouraging the movement of capital has served the economy extremely well.
  • Israel is committed to openness as a strategic approach, while recognizing the importance of financial sector regulation, a strategy that has contributed to its impressive economic growth and increased economic efficiency in recent years.
  • Sound macroeconomic strategy, coupled with the relatively conservative approach driving the Israeli banking sector's strategic decisions, has fueled Israel's strong economic performance, even as the global economy has contended with crippling economic slowdown.
  • Since 2004, Israel’s growth rate has exceeded the average growth rate of all advanced economies including a 1.1% growth in it’s GDP during an economic decline in 2009.