Israel’s Advantage in R&D is also Israel's Advantage in Advanced Manufacturing

Israel’s Advantage in R&D is also Israel's Advantage in Advanced Manufacturing 16.02.2017


This week, OurCrowd is hosting the largest investor event in the Startup Nation - The 2017 OurCrowd Global Investor Summit - one of the largest gatherings of its kind in the world. Now in its third year, the Summit will host 5,000 investors, venture and corporate partners, entrepreneurs, global delegations, industry leaders and members of the press from all over the world.

“Invest in Israel” is the Israeli Government’s investment promotion authority, part of the Ministry of Economy and Industry. Our mission is to be the one-stop-shop for foreign investors considering Israel as an investment target and MNCs looking to increase their presence in Israel, work with them and help them make the right decision – to invest in Israel. 

In the last few decades, Israel has become an international hub for R&D operations for all the major global corporations. This is highly related to the Israeli leadership in R&D spending, which has traditionally been one of the highest in the world, relative to local GDP. We, at the Authority, strongly believe that Israel’s advantage in R&D is also Israel's advantage in advanced manufacturing.

Traditionally, the countries of the world have crafted a unique position in the global value chain: R&D in Israel and the US, with high added value per employee; manufacturing in China and India, with low added value per employee but wide occupational effect; and distribution and marketing in the US and Switzerland, with high added value and a wide impact on employment. Each one of these activities has a unique impact on the local economy and requires different skill sets.

But in the last 5 years, this has begun to change. Advanced manufacturing, with its tremendous focus on technology and advanced materials is making the developed economies once again a target for manufacturing.

Being close to the R&D processes, coupled with great human resources, startups and the creative thinking has encouraged MNCs such as Intel, HP, GE and others to open, alongside their research and innovation facilities, world-leading advanced manufacturing factories here in Israel.

We see foreign companies as an inseparable and essential factor in Israel’s economic growth. Our job is to make sure that potential investors receive the attention they deserve to ensure that any investment will not be a one-off. For this reason, we have set up the Investors’ Service Center – After Care.

We explore all the investment processes in Israel, map potential obstacles and create green lanes in order to assist investors. We work with government ministries, local authorities, tax authorities, planning and building commissions to help guide investors through the regulatory framework and ensure it is effectively applied to their benefit. 

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