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Annual Report: The State of High-Tech 2025 (Israel Innovation Authority)

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ReportIsrael Innovation AuthorityJanuary 202564 pages96 min readOriginal source
Key number
57.2%
High-tech share of total Israeli exports p.2
Largest segment
72%
Software services share of high-tech exports p.2

Summary

  • Israeli high-tech exports reached 57.2% of total national exports in the first four months of 2025, after totaling USD 78 billion in 2024.p.2
  • High-tech employment stood at approximately 403,000 employees in the first half of 2025, representing 11.5% of the national workforce.p.2
  • R&D jobs in Israeli high-tech declined by 6.5% in the first half of 2025 compared to the same period in 2024.p.2

Key insights

  1. Software services accounted for 72% of Israel's USD 78 billion in high-tech exports in 2024.p.2
  2. High-tech goods exports to the United States represented 6.6% of total high-tech exports in 2024.p.13
  3. Three out of every five shekels invested in Israeli high-tech in the first half of 2025 went to cyber and organizational software companies.p.8
  4. Google acquired Israeli company Wiz for USD 32 billion in 2025, marking the largest M&A deal in the sector's history.p.22
  5. Israel leads globally in civilian expenditure on R&D, reaching 6.35% of GDP in 2023.p.14
  6. A total of 5,921 master's and doctoral degree students graduated in deep-tech subjects in Israel in 2024.p.9
  7. The Israel Innovation Authority allocated 90% of Startup Fund grants to companies operating in sectors with low or medium private capital availability.p.48

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