Israel excels in scientific and technological pursuits, boasts 200 local R&D centers, and hosts R&D bases for many global tech companies including Microsoft and IBM, attracted by government incentives including low corporate tax rates, grants and R&D funding.
Advanced software parks have sprung up in Tel Aviv and Jerusalem, while Israel’s vibrant venture capital market is one of the largest in the world; attracting 2011 investment of over USD2 billion in 2011.
Israel is an incubator for startups and numerous Israeli tech companies have gone on to Wall Street listings. In 2011, VC-funded Israel companies drew $5.1 billion in acquisitions.
In recent years, investments in Israeli technology companies have shifted from communication and semiconductor segments to new media, internet and mobile platform applications.
- Ofer Sela, Partner, Technology Group, KPMG in Israel