Report on Israel Digital Health Sector

Read the full report here

Report main highlight 

The digital health sector is one of the most promising areas in terms of global growth, and is expected to grow significantly by 2024, reaching a market size of over $200 billion globally. 

Israel aims to become a significant global player in this digital health eco-system, and has already increased its share of the global market investments in the past five years: the investment rate is Israeli digital health technologies is 4 times higher than the global average, and today Israel holds 4.5% share of global investments in digital health (while the country’s population represents about 0.1% of the global population). Accordingly, Israel is becoming one of the most important digital health hubs globally, and is attracting a wide range of global players: multi-national companies; financial investors; researchers and others. 

The aim of ‘Digital health: the Israeli promise’ report is to provide a better understanding of Israel’s ‘secret sauce’: what makes its eco-system unique, and what are the main advantages & strengths it may offer to different types of health players.

In order to do so, we interviewed over 40 key opinion leaders in the digital health eco-system in Israel & abroad, created an eco-system map which describes the various layers: vibrant start-up scene, multi-national companies’ already established in Israel, government, professional associations & local financiers support schemes and the healthcare systems unique assets and attributes, including a rare collection of connected, lifelong and digitized electronic health records. 

The report suggest that Israel may be highly attractive for global players which seek to develop external & internal digital health innovation, as it provides a relatively low risk and high-quality digital health R&D platform.

Within 3-4 years, an early-stage company can evolve from initial idea stage to product and with first deployment within a healthcare system that serves over a million patients, as evident in Israel’s HMOs and hospital networks. today there are already over 500 start-up companies in the digital health sector, 50% of the post-product phase, leading to a significant deal flow for external innovation.  Similarly, companies can test and develop their products, encourage open innovation and cross industry partnerships using Israel’s highly skilled human capital, existing tech-industry, as well as data sources & health service providers as beta-sites. 

Most of the pharma & medical device players have already established presence in Israel, and are expanding to new activities in the digital health field. Among those are GE Healthcare, Medtronic, Philips Healthcare, Change Healthcare, Amgen, IBM, Microsoft & AstraZeneca. The report includes the companies’ case studies, activities in Israel and insights regarding the Israeli eco-system from chief executives.

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