Silicon Valley is commonly thought of as the birthplace of modern technology. However, as technology globalizes, the place for technological innovation has also spread. In the more recent years, Israel has emerged as something of a hotspot for technological innovation. This can be seen not only in the creation of new companies, but also major existing companies moving to Israel, the Startup Nation. This can likely be attributed to the focus of the Israeli government on incentivizing tech startups.
In 1983, Israel launched ‘Yozma’, which helped to structure an environment that aided the feasibility of having success for a startup. It did this by matching outside capital to Israeli firms and providing numerous grants and tax reductions for R&D within companies. Since then, the government has continued its efforts by providing further tax incentives for intellectual property created in or transferred to Israel.
One of the most impactful actions recently has been the signing of the Abraham Accords in 2020. This contract with the UAE, US, and Bahrain created better connections between the signers and created at least 150,000 jobs. As a result, Israeli startups experience significantly less friction to enter neighboring and global markets, allowing for a higher chance of success. Israel’s focus on innovation has propelled them into the tech industry and there is sure to be more success yet to come.
