Innovation Authority to invest nearly $10 million in high-tech jobs in Negev and Galilee

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The Israel Innovation Authority will invest almost $9.6 million (NIS 35 million) to stimulate the growth of high-tech jobs in the northern Galilee and southern Negev regions. The initiative will include cooperation from the Ministry for the Development of the Negev, Galilee and National Resilience; the Tekuma Authority and Israel’s Social Equality Ministry.

Both the Negev and the Galilee regions have paid a high human and financial price for defending themselves against the Iranian-backed Hamas terrorist organization in Gaza, as well as the ongoing conflict with Hezbollah terrorist forces on the northern border with Lebanon.

Before the war, most high-tech jobs were concentrated in Tel Aviv and central Israel.

Israel Innovation Authority (IIA) CEO Dror Bin confirmed that the goal of the investment is to encourage tech businesses to move part of their operations to the Galilee and Negev.

“The program is designed to reduce the risk for high-tech companies considering following the path of many others and opening operations outside of their main headquarters,” Bin said.

He said the almost $10-million investment “aims to expand the human capital available to companies and also assists local entities in the periphery in offering high-tech companies an attractive package for establishing new activities.”

The Israeli tech sector currently employs approximately 12% of the total Israeli workforce. However, the tech sector is crucial to the economy and accounts for roughly 25% of Israel’s total income tax revenue and about 50% of exports. Furthermore, wages in the tech sector tend to be significantly higher than the average Israeli salary. Israeli tech experts have, therefore, urged authorities to expand the tech sector, especially to Israel's northern and southern regions.

“Strengthening employment in the Negev and Galilee is a priority,” stated Yitzhak Wasserlauf, minister of the Development of the Negev, Galilee, and National Resilience.

“The state has a vested interest in encouraging companies to expand their activities to the Negev and Galilee, thereby increasing quality employment and allowing talented young people to remain and build their future in these regions, while also attracting new, strong populations to the area.”

Leading Israeli economists recently warned that the ongoing war threatens the Israeli economy’s long-term viability.

“The economy right now is under huge uncertainty, and it’s related to the security situation – how long the war will go on, what the intensity will be and the question of whether there will be further escalation,” stated former Israel Central Bank chief Karnit Flug.

In July, the current Bank of Israel Governor Amir Yaron warned that the Gaza War could end up costing the Israeli economy up to $67 billion in military and civilian expenses during the period between 2023 and 2025.

The Galilee and Negev are currently home to over half of Israel’s Arab minority population. The new tech investment in these regions could potentially boost Arab Israeli employment in local high-tech companies, as well.

Hassan Tawafra, the head of the Economic Development Authority for the Minority Sector at the Social Equality Ministry, argued that the Arab Israeli community offers quality human capital to tech companies.

“The Arab community is undergoing significant changes, and there is a high-quality human capital within the Arab community with the skills needed to integrate into high-tech companies across various professions,” Tawafra said. “Opening branches will allow companies to access this candidate pool and facilitate the integration of Arab workers into the industry.”