Israel has made a name for itself in the global tech startup scene due to a combination of government programs, tax incentives, and a rich talent pool of entrepreneurs and innovators. According to an infographic, in 2021, Israel received twenty-eight times more capital flow than the U.S. on a per capita basis, further solidifying its reputation as a startup nation. This success can be attributed to the country's high investment in research and development, which is double the OECD average, and ranking second globally for research and development expenditure per capita. Israel is home to numerous tech companies and research and development centers for multinational companies, such as Google, Apple, and Intel.
Tel Aviv is the seventh largest startup ecosystem globally, with a startup value of $120 billion in 2022. The city has seen a 169% increase in patent counts since 2021 and hosts innovation centers for companies like Volkswagen, Anheuser-Busch, and Apple. The country's success can also be attributed to more than thirty grants and tax incentive programs for research and development, including conditional grants, reduced tax rates, and employment aid programs.
The Abraham Accords, signed in 2020, have also extended Israel's economic relationships in the Middle East, potentially creating 150,000 new jobs for the four signatories. Additionally, Israel's success can be attributed to US venture capitalist firms with offices in Israel, Israeli startup founders moving their headquarters to tap into local investments in US cities, and Israeli entrepreneurs being forced to operate globally due to small local markets and security threats.
With a rich history of innovation and influential people such as Yossi Vardi, Gil Shwed, and Daphne Koller, Israel's drive for innovation is undeniable and will continue to impact global entrepreneurship. With $2.1 billion in commitments and 380 portfolio companies, the OurCrowd 10th Annual Global Investor Summit was proof of the continued success of Israeli tech startups. As Hillel Fuld, tech journalist and startup advisor, said, "Israel has dominated all sectors of technology for decades and will continue to do so far into the future."