Dror Bin – CEO-Israel Innovation Authority
The Israel Innovation Authority announced 15 approved projects under its “Startup for High-Tech” program. These projects will establish new branches of high-tech companies in priority areas throughout Israel, from north to south. This initiative, a collaboration with the Ministry for the Development of the Negev, Galilee, and National Resilience; the Ministry for Social Equality (as part of the 550 Five-Year Plan); the Tkuma (Resurrection) Directorate (an organization responsible for aiding and developing Israeli communities located near Gaza); and the Ministry of Jerusalem and Heritage, represents a total investment of approximately 29 million Shekels ($7.93 million), comprised of 16 million Shekels ($4.4 million) in government funding and 13 million Shekels ($3.55 million) in private investment.
These selected projects are expected to establish new high-tech branches within six months and operate for 12-24 months. The ultimate goal is for these branches to become self-sustaining after this initial period, thereby boosting development in peripheral regions and strengthening the overall high-tech sector.
Winning Projects Include:
“ITWorks Empowering People”: This company specializes in recruitment, mentoring, and employment for underrepresented populations. Branch offices will be opened in East Jerusalem, Julis, and the Triangle region.
“Place.IL Association”: Focused on integrating underrepresented populations into leading high-tech companies, new branches will be established in the Tkumah region.
“Or Movement”: Supporting the establishment of high-tech branches in the western Negev and Tkumah region.
NorthMed Innovation Center in Sakhnin: In collaboration with Gissok, new branches specializing in VLSI and other high-tech fields will be established in northern peripheral areas.
TSG IT Advanced Systems: Developing control, monitoring, and emergency preparedness systems, a branch will be opened in Ariel in partnership with the Innovatech Innovation Center.
SeaNovation Eilat Eilot Ltd.: Partnering with Qualitest to open a branch in Eilat.
Qassem High-Tech Park Ltd.: Partnering with SUNUP to establish branches specializing in smart home technology and cyber analytics, in collaboration with CyberArk.
Desert Innovation for Desert and climate technologies: Establishing two branches in data and drone technologies in collaboration with Tech19 and Negev19.
Techlinic Innovation Center: Opening development team branches in East Jerusalem.
NorthMed Innovation Center: Establishing six branches in the northern periphery.
GSOC in collaboration with the Golan Economic Corporation: Opening a branch in the Golan Heights specializing in ASIC VLSI.
Nistec Merkaz Ltd.: Opening an R&D branch in the Golan Heights.
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According to the Israel Innovation Authority’s 2024 annual report, most growth in high-tech employment in Israel stems from research and development roles, primarily concentrated in central Israel. At the same time, the past year has seen a significant decline in available positions, particularly for juniors without prior experience. This challenge makes it difficult for underrepresented populations and peripheral regions to gain the initial experience necessary for entering the industry.
The “Startup for High-Tech” program seeks to address this trend by creating new employment opportunities in peripheral regions, aiming to expand the geographic distribution of Israel’s high-tech industry and the available human capital. The program will help juniors gain practical experience through internships of at least six months, allowing them to integrate into the companies they intern with or gain valuable experience for other roles in the high-tech sector.
The program offers financial support for several months to companies and organizations hiring inexperienced employees (juniors) in new branches located in peripheral areas. Additionally, funding is provided for experienced seniors to mentor juniors under the “on-the-job training” (OJT) model and for the onboarding process. The winning projects are expected to begin operations and hire initial employees during 2025-2026, with the branches expected to expand further, creating long-term high-tech employment anchors in these regions.
Dror Bin, CEO of the Israel Innovation Authority: “The ‘Startup for High-Tech’ program is a true milestone for the high-tech industry. It reduces the risk for companies considering opening operations outside the central headquarters, enabling the expansion and diversification of human capital. This innovative initiative assists local entities in the periphery in offering high-tech companies attractive packages to establish new operations. We view this program as a unique opportunity to expand high-tech activities and accelerate its development across Israel.”
