Israel’s academic institutions have contributed greatly to establishing and developing the local technology market. According to OECD data, Israel ranks third worldwide in percentage of the population with academic degrees:
Over the past several decades, Israel has been a world leader in national investment in research and development when calculated as a percentage of the GDP, maintaining a steady average of 4.2%, far above the OECD average of 2.3%.
This steady investment over time is proof of a government policy aimed at encouraging entrepreneurship and facilitating the growth of new ideas.
The Israel Innovation Authority subsidizes R&D expenses of start-ups (up to 75%) as well as large companies, with some programs tailored specifically for cooperation with foreign MNCs. In addition, incubator plans are developed into technological initiatives that help entrepreneurs who are just starting to transform their ideas into commercial businesses. Government- supported research centers maintain ongoing relationships with the private- commercial sector by sharing information and human resources and helping the domestic ecosystem to flourish.