High Tech

Israel’s high-tech industry is experiencing an unprecedented rate of growth, which began in the early 1990s.
Advanced technologies developed in Israel are in great demand, and many Israeli-developed applications can now be found in the products of multi-national companies in the communications, computers, information systems, medicine, optics, consumer goods and software sectors.
One factor in the exceptional growth rate in this industry in recent years is Israel’s percentage of engineers, the worlds highest, with 135 engineers per 10,000 persons, as compared to 85 per 10,000 persons in the United States.
The ongoing success of the Israeli high-tech industry is also reflected in the local and foreign stock markets, such as the New York NASDAQ and the London AIM. In addition, many leading American investment houses and venture capital funds have established a presence in Israel in order to support Israeli high-tech firms and benefit from the current boom.
Technologically, the Israeli high-tech industry is well positioned among the top five world leaders in the field. R&D-intensive, high-tech companies have been a major factor in the growth of exports over the years, especially in electronics, optics, electro-optics, lasers, computer-based equipment, robotics and aeronautics.
Israel is highly regarded as a location for branches of foreign firms. Benefits include highly-skilled engineers, good geographic location and some tax and custom benefits, which enable US firms to sell products manufactured in Israel to European markets without paying duty.
Since 1995, many foreign firms have established a presence in Israel. Of these, some entered the market by setting up operations directly, whereas others do so by friendly take-overs of small Israeli firms. Additional firms are listed as U.S. firms, although all development and manufacturing facilities are located in Israel and management is Israeli, or largely Israeli. Many international firms also maintain a presence in Israel by virtue of their minority holdings in Israeli start-up companies.
The Israel high-tech industry can benefit from cooperation with foreign companies at all levels. Some of the success stories of the Israel high-tech industry involve a partnership between an Israeli and a foreign partner, in which the Israeli partner provides the technology or the product, and the foreign partner provides the sales and support functions in target markets.
Israeli high-tech is on the way to the forefront of world technology in terms of knowledge and development. Israeli leaders believe that the high-tech industry can lead not only Israel, but its neighbors as well, to a better future.