The State of High-Tech 2026 (Israel Innovation Authority)

Summary

• Israeli high-tech output totaled NIS 352 billion in 2025, representing real growth of 8.2% and contributing 50% to overall national GDP growth.p.9
• Total venture capital raised by Israeli high-tech companies grew by 30% in 2025 to $14.6 billion.p.33
• Exit value reached a record $84 billion in 2025 across mergers, acquisitions, and initial public offerings.p.41
• An estimated 775 new startups were established in Israel in 2025, reversing a decade-long downward trend.p.31
• Hardware manufacturing led output growth in 2025, expanding by NIS 16 billion or 20.7%.p.10
• High-tech exports reached $85 billion in 2025, accounting for 58% of total Israeli exports.p.12
• High-tech employment reached 400,000 workers in 2025, representing 11.4% of overall employment in Israel.p.15

Key insights

1. Israel ranked as the fourth-largest hub globally for tech startup fundraising in 2025, securing $14.6 billion.p.37
2. Hardware manufacturing output expanded by NIS 16 billion in 2025, driving the majority of total high-tech output growth.p.10
3. High-tech R&D employment in Israel declined by 3,500 workers in 2025, marking the first decline in a decade.p.16
4. Foreign investors provided 70% of total venture capital funding raised by Israeli technology companies in 2025.p.47
5. Private Israeli tech companies experienced a 9.6 percentage point decline in the share of C-level executives residing in Israel between 2019 and 2026.p.25
6. Core artificial intelligence companies attracted 35.2% of all Israeli high-tech investments in 2025.p.40
7. Annual output per high-tech employee reached NIS 827,000 in 2025, compared to NIS 721,000 in the financial services sector.p.18