A "New Contract" for Israel's Hi-Tech Industry
Hi-tech is not the exclusive domain of industry professionals: it is one of Israel’s key sources of strength. It funds public services, creates high-quality jobs, bolsters national security and enables children from across the country to integrate into the professions of the future. While the sector appears to be breaking records, dangerous structural cracks are forming beneath the surface. Our “New Contract” for the hi-tech industry will supply the fuel needed to propel the industry forward and restore Israel’s place on the global innovation map as well as provide certainty to investors and a future for the entrepreneurs who will drive the sector’s growth – thus benefiting all segments of Israeli society.
What's the problem?
The contract between the state and its citizens is fraying within the hi-tech industry as well. Israel’s hi-tech industry is a shared engine of growth: it accounts for approximately 18% of the country’s GDP and helps fund public services for all citizens. Yet, despite its apparent success, the sector is suffering from structural cracks: regulatory uncertainty, damage to its international reputation, and instability have led to a slump in foreign investment and capital raises, “brain drain,” a decline in the number of new startups, and for the first time in years, a drop in the number of people working in R&D. Furthermore, the hi-tech sector is not accessible to all segments of society or all regions of the country. If we fail to act, this industry which is so vital to Israel’s growth and standing will begin to decline.
What's the solution?
A new government will fuel the high-tech sector, the engine of the nation’s growth. We will restore certainty, stability and confidence. We will build an “economic Iron Dome” for hi-tech. We will build the national infrastructure needed for the next technological race including computing power, data capabilities, and advanced infrastructure. We will keep our high-quality human capital here in Israel, work to bring back talent and encourage mass immigration and open the hi-tech sector to all parts of society and the country, from Kiryat Shmona to Rahat.
How will we know we've succeeded?
15% of Israelis will work in hi-tech
We will expand the ranks of the industry and increase the share of hi-tech employees from all segments of society. We'll achieve this by nurturing talent in the education system, strengthening academia, and establishing the periphery as a key hub for growth.
Israel at the top of global innovation
We will propel Israel into the global top three in the fields of artificial intelligence, quantum computing, and deep tech.
Turning the migration balance of high-tech workers positive
More hi-tech workers returning to and entering Israel, and fewer leaving.
Our "New Contract" for Startups
01
An “Economic Iron Dome” for investors: restoring regulatory certainty and stability to attract international capital once again. Investors do not fear risk – they fear uncertainty. We will build a smart government model that leverages the private sector and repositions Israel as a safe, stable destination for long-term technology investments—all to safeguard state revenues, strengthen public services for everyone, and ensure high-quality jobs from Kiryat Shmona to Rahat.
02
Israel will rank among the top three nations in Artificial Intelligence (AI) and DeepTech – because whoever masters the technology of tomorrow controls the future: We will build the national infrastructure needed for the next technological race – including computing power, data, and advanced systems – and make it accessible to both academia and industry. This will ensure we do not rely on the outside world and that our security and economic advantages remain firmly in our own hands. We will transform Israel from a consumer of technology into a producer of strategic capabilities, while strengthening our security advantage through dual-use innovation.
03
Israel’s advantage lies in its people, and so we will retain, bring back, and cultivate talent: We will nurture talent starting within the education system, open the hi-tech sector to all segments of society, and transform the periphery into a hub of growth. We will strengthen academia as an engine of growth through excellence and commercialization, and establish a “returnees’ desk” (for supporting Israelis who’ve left the country and wish to return home) as well as remove bureaucratic barriers.
04
A fast track for innovation including launching a company in 24 hours: We will create a streamlined pathway for establishing startups and a barrier-free business environment modeled after Delaware’s. We will transform the country into a safe, global pilot hub for breakthrough technologies, featuring lean, flexible regulation aligned with international standards. The government will serve as the first customer for Israeli innovation, integrating that innovation directly into the public sector for the benefit of all Israelis.
05
We will entice tech giants to put down roots here: While they value Israeli talent, it is time for them to establish long-term roots rather than focusing solely on quick exits. We will offer preferential access to national infrastructure in exchange for investment, establish a governmental fast-track for multinational corporations, and use tailored incentives to encourage the world’s leading companies to expand their operations, R&D centers, and high-paying employment across Israel.
