Annual Report: The State of High-Tech 2025

Introduction and Main Points: Increased Startup Fundraising Alongside Stagnation in High-tech Employment Growth – An overview of the Innovation Authority’s Annual Report for 2025 reflects the resilience and durability of the high-tech sector in the face of ongoing challenges. Although Israeli high-tech remains in prolonged stagnation in key metrics such as high-tech output and employment, […]

Preface

The world is undergoing a profound transformation, one directly impacting the high-tech industry. Three dramatic processes are reshaping reality: A shift in the global investment climate, reflected in growing investor caution and a move toward focused investments in fields with proven potential; The transition to Artificial Intelligence and deep-tech, which are driving fundamental changes in […]

Part 1 - The Israeli High-Tech Sector

2025 Overview: Stagnation in High-Tech Output Growth Recent years have been characterized by stagnation in high-tech output growth, similar to that observed in high-tech employment. In 2024, high-tech output totaled NIS 317 billion, constituting about 17.3% of Israel’s GDP.1High-tech output data was recently revised retroactively by the Central Bureau of Statistics, starting from 2009. The […]

Part 2 - Deep-Tech in Israel

Introduction and Background: Deep-Tech in Israel This section presents a joint study conducted by the Innovation Authority and ‘Dealroom’, surveying the deep-tech sector in Israel and comparing its activity to leading global hubs competing with Israel. For the purpose of this publication, a deep-tech company is defined as a company developing complex technology that, due […]

Deep-Tech and Under developed Capital Markets

Innovation Authority Funding Policy for Early-Stage Startups The Startup Fund: Addressing Market Failures of Early-Stage Startups During 2024, the Israel Innovation Authority launched the ‘Startup Fund’ as the main instrument for financing early-stage Israeli technology companies. The Startup Fund replaced the R&D Fund, which had operated for many decades, with the aim of providing a […]

Appendices