Israel has seen a “significant” rise (more than double) in women’s representation in Israel’s Startup Nation high-tech R&D positions. According to a new report issued by the Israel Innovation Authority (IIA), there has been a 130% increase in women’s involvement in such roles over the past decade.
Unfortunately, even with this increase, a report released by Israel’s Central Bureau of Statistics ahead of International Women’s Days showed that in 2023 only 151,000 women were employed in Israel’s Hi-tech sector, as compared with 290,000 men. Women comprised just 34.3% of the persons employed in the country’s Hi-tech.
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According to the IAA report, almost 40% of employed women in the tech industry are currently involved in R&D roles, reflecting a substantial 130% increase over the past decade. In 2023, 38% of women in the tech industry held R&D positions, compared to around 28% in 2013, demonstrating a steady annual growth rate of 2.7%, similar to that of men.
However, despite these positive trends, women still only occupy a third of all high-tech positions, falling short of the 43% target set by the National High-Tech Human Capital Committee, known as the Perlmutter Committee, for 2035. This gap is particularly pronounced for Jewish women (non-ultra-Orthodox), with approximately 80,000 positions needed to meet the designated target.
Despite the slowdown in the tech industry over the past year due to the war and the legal reform, the growth rate for both women and men in the tech industry remains consistent at around 2.7%. However, the proportion of women in administrative and business development roles has decreased from 50.7% in 2014 to 41.4% in 2024, demonstrating an 18% decline in the last decade. The findings indicate a need for targeted interventions to ensure balanced representation across all sectors within the industry.
“The tech sector has been at the forefront of the Israeli economy for many years, but there is still a way to go regarding gender equality,” said Dror Bin, CEO of the Israel Innovation Authority. “We see more women in core roles, but the growth rate is insufficient to reach gender parity goals. In 2023, about 3,500 positions were added for women in tech compared to about 6,700 positions for men.”
Bin said that in order for Israel to bring about change, there must be a “concerted long-term effort by the tech industry and relevant government entities to continue breaking the glass ceiling for women earlier in their career.”
The report also includes two newly published research papers: the first, led by the Aaron Institute for Economic Policy in collaboration with the Israel Innovation Authority, explores the connection between high school studies, salary, and employment in high-tech; and the second, led by the Trump Foundation in collaboration with the Israel Innovation Authority, examines gender wage gaps in high-tech and how job transitions impact disparities. The research sheds light on critical aspects of women’s participation in the tech industry, providing insights into educational pathways, salary structures, and employment dynamics.
The Perlmutter Committee’s summary report underscores the imperative to enhance human capital and growth potential in tech, particularly among underrepresented populations. While most groups are anticipated to exceed their growth targets by 2035, challenges persist, notably for Jewish women (non-ultra-Orthodox) and Arab women, who are not expected to reach their 2023 growth target of 80,000 positions, necessitating additional interventions to bridge these gaps effectively.
