The discovery was born here - the factory will be built abroad

Prof. Moshe Papa's article examines the gap between Israel's ability to produce medical breakthroughs and its difficulty in retaining the resulting industry locally. He describes the value chain from research to production, cites investment data of $5 billion annually, and warns that the decline in investments in 2025 could lead to the migration of companies and knowledge abroad.

Prof. Moshe Papa, an oncologist, analyzes Israel's economic-scientific gap: an exceptional ability to produce medical breakthroughs alongside a chronic difficulty in retaining the resulting industry within the country's borders. Papa describes the full value chain — from basic research through patent, startup, clinical trials, to production and sales — and shows how each stage generates revenue, infrastructure, and jobs. He cites data: in 2024, approximately $2.7 billion was invested in Israeli life sciences companies, medical equipment exports stood at $3.4 billion, and drug exports at $1.8 billion — over $5 billion annually. However, in 2025, private investments plummeted by about 40% to a five-year low. Papa warns that biotech companies mid-clinical trial cannot stop; when funding ceases, the company moves abroad along with its trials, management, production, and intellectual property. He points to a paradox in oncology: excellent infrastructure but small, single-center research, difficulty connecting databases, and a lack of protected research time for doctors. Papa calls on the state to intervene at market failure points, not to fund everything, and cites the national bio-convergence program as a positive example of public investment enabling private capital entry. He emphasizes that the real profit — years of healthy life, savings for the healthcare system, and quality of life — does not appear in any financial report.