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High-Tech Still Largest Part of Israel’s Economy

High-tech still fuels Israel's economy, contributing 20% to national product. Report highlights innovation strength amid challenges in R&D and academia-industry

September 30, 2025 at 5:55 pm Gil Tanenbaum Breaking News

Jerusalem, 30 September, 2025 (TPS-IL) — High-tech remains the national economic engine and contributes about a fifth of Israel’s national product. This is according to the annual report of the National Council for Civilian Research and Development (NCCRD) for 2024.

The report depicts a complex picture: Israel continues to be an innovation powerhouse with a global lead in venture capital investments and software services exports, but at the same time, there are trends of erosion in human capital, a decline in government investment in R&D, and a weakening of the connection between academia and industry.

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