Historical records under fire: How Israel maintains its status as a high-tech and innovation powerhouse | Analysis
Despite the ongoing war on seven fronts, Israel's high-tech industry achieved unprecedented records in 2025: exports of $85 billion, output of 352 billion shekels, and massive fundraising of $15 billion. Exit deals soared to $84 billion, led by Google's acquisition of Wiz for $32 billion. The article presents a shift from Startup Nation to R&D Nation, emphasizing the retention of knowledge and intellectual property in Israel.
Despite a prolonged war on seven combat fronts, Israel's high-tech industry recorded unprecedented records in 2025. High-tech exports reached a peak of about $85 billion, constituting approximately 58% of all Israeli exports. High-tech output soared to 352 billion shekels (18.3% of GDP), and the sector contributed about 50% of economic growth. Israeli companies raised about $15 billion, an increase of about 30% compared to 2024, and the volume of exit deals reached about $84 billion. The prominent deal was Google's acquisition of Wiz for $32 billion. The article presents a conceptual shift from Startup Nation to R&D Nation, where the measure of success is what remains in Israel after the deal – the brain, intellectual property, engineers, and development centers. As an example, the company RealSense, sold to Cognex while maintaining its development center in Haifa, is cited. However, the article notes that in March 2026 only about 62% of employees of private Israeli companies were employed in Israel, compared to 69% in 2019, and calls for continued active government policy. The central message: Israel is not only surviving under fire but growing and leading as a global research and development powerhouse.