To many minds, the thought of manufacturing conjures up images of a world in which heavy industry dominated national economies, before the latest technological revolution disrupted everything. Since the Industrial Revolution, however, manufacturing and technology have gone hand in hand. This holds particularly true in advanced manufacturing – the leveraging of cutting-edge technologies, tools, and practices to build high-tech and even low-tech products – making companies more efficient and boosting productivity.
Israel’s economic and manufacturing base is too small to compete with the likes of China and India when it comes to mass production. Yet in recent years, Israel has been an engine of advanced manufacturing’s global growth, propelled by the Start-Up Nation’s excellence in high-tech and R&D. The country has distinguished itself across high-tech sectors, including big data and cloud; sensor systems and powerful advanced processors; widespread additive manufacturing technologies; industrial robots, with rapidly developing abilities and decreasing costs; and information technology (IT), enabling new models of collaboration.
Israel’s world-renowned prowess in R&D is closely linked to its success across advanced manufacturing sectors. From its robust defense industry to the R&D centers established by companies like HP, Applied Materials, Intel, and Teva Pharmaceutical (NYSE: TEVA), Israel’s vibrant research and innovation ecosystem has powered advanced manufacturing in the high-tech space. Israel’s world-leading Internet Industry of Things (IIoT) sector serves as a prime example, enabling the next generation of industrial innovation. But it’s not only high-tech that benefits: Israel has pioneered the integration of sophisticated solutions for manufacturing in low-tech industries, including through an Israel Innovation Authority program that subsidizes low-tech enterprises, from ceramics to textiles to plastics, implementing innovative processes.
How is Israel pushing advanced manufacturing forward for traditional, low-tech manufacturers? Consider the cases of these companies:
With an eye toward incentivizing innovation and startup creation throughout the country, the Ministry of Economy and Industry recently announced an initiative providing government-funded grants of up to 20 to 30 percent and a 7.5 percent tax credit for both new and established companies who set up advanced manufacturing facilities in fields like renewable energy, nanotechnology, biotechnology, and IoT. The incentive program targets development in Israel’s geographic and economic periphery.
Whether it’s emerging industries like IIoT, the manufacture of construction materials or designing and producing the newest semiconductors, Israel has consistently shown a commitment to remaining on the leading edge of advanced manufacturing solutions, powering the Israeli economy to new heights — with benefits for the entire world.