Innovation in Israel Overview 2016 – Published By the Israel Innovation Authority
The report reviews the major trends taking place in the hi-tech industry in Israel. It also reflects the focus of the Israel Innovation Authority on securing infrastructure for the growth of the innovation industry, which includes expanding the number of minority workers in the R&D sector, revealing new financing tools, supporting the creation of open innovation platforms, and fostering a cooperative international system for innovation and R&D. The report also sheds light on a new focus of the Authority, the manufacturing sector, which was previously included under the limited definition of traditional industry. At the same time, the Authority is working continuously to support breakthrough technologies, as described in the chapter about robotics.
Israeli hi-tech industry was born from a “perfect storm” that combined technological readiness on the brink of explosion, market reforms and integration into international markets, and the arrival of thousands of skilled engineers from the former Soviet Union. Hi-tech industry had a historic role in the Israeli economy, and it largely shaped the economy as we know it today. Now, the hi-tech industry is at a crossroads: is it heading for renewed growth or for stagnation resulting from increased competition? On the one hand, Israel has a great opportunity to harness its innovation and make it the growth engine for the entire economy, positively affecting the daily life of all citizens in the country – through improving government and municipal services, and making digital education accessible to all; through new and useful consumer products; through growing of small companies into large enterprises, and through direct and indirect employment of large populations in technology-oriented industries.