Summary
Israel has a highly developed science and technology sector, accounting for 4.3% of its GDP in 2015 - the highest ratio in the world. Israel ranks fifth globally in innovation and thirteenth in scientific output per million citizens. The country has a high ratio of scientists and technicians and invests heavily in research and development.
Israel's high-tech industry originated in the rapid development of computer science and technology in the 1980s. Key factors enabling high-tech industries were investments from the defense and aerospace industries, which created new technologies and know-how. Defense spending remains high, forming the basis for Israel's high-tech industries in various sectors.
Currently, Israel has the world's most research-intensive business sector, with 4.95% of its GDP invested in research in 2018. Over 530 foreign research centers are currently active in Israel, many owned by multinational firms that have acquired Israeli companies and technology.
The Sixth Higher Education Plan (2011-2016) places greater emphasis on research excellence and emphasizes encouraging minority groups to enroll in higher education. The Israeli Centres of Research Excellence (I-CORE) program aims to establish cross-institutional clusters of researchers in specific fields and return young Israeli scientists from abroad.
Israel does not have a national science, technology, and innovation policy but implements a set of unwritten best practices. There is no specific legislation regulating the transfer of knowledge from the academic sector to industry, but the government encourages knowledge transfer through incentives and subsidies.
Israel's main source of research funding is the Israeli Science Foundation. The Ministry of Science, Technology, and Space funds thematic research centers and international scientific cooperation. The Israel Innovation Authority manages various funding programs for research and development.
Israel invested heavily in primary, secondary, and tertiary education during the 1950s, 1960s, and 1970s. Since 2007, the number of graduates in physical and biological sciences has dropped, even though the total number of university graduates has increased. Public spending on primary education has fallen below the OECD average.
Israel is investing heavily in digital technologies such as AI, data science, smart mobility, digital health, and e-governance. The Digital Israel initiative aims to make Israel a global leader in this domain.
Israel's seven research universities, led by the Technion - Israel Institute of Technology, are ranked among the top 50 academic institutions globally in several scientific disciplines. Israeli universities have a high citation rate and a high share of papers among the 10 percent most-cited.
Israel's venture capital industry has played a fundamental role in funding and backing the development of the country's high-tech sector. In 2018, venture capital market deals were worth US$ 4.759 million, with nearly half of them involving an Israeli venture capitalist.
Israel has a concerted effort to improve the economy's ability to benefit from enhanced intellectual property rights. Between 2002 and 2012, foreigners accounted for nearly 80% of the patent applications filed with the Israel Patent Office.
Israel is the world's largest per capita user of solar water heaters. Israel has developed innovative technologies in the solar energy field and has become a significant exporter of natural gas.
Israel has a strong cybersecurity industry, with an estimated 300 Israeli cyberdefense companies in 2014.
Israeli scientists have made significant contributions to biotechnology, genetics, and cancer research. Israel has an advanced infrastructure for medical and paramedical research and bioengineering capabilities.
Israel is the home to several quantum technology initiatives, including the world's first Quantum computing center.