Innovation Authority invests NIS 35m to lure tech jobs to Negev and Galilee
Addressing challenges posed by the months-long war, funds are allocated to help tech firms open new branches and hire local talent in the north and south
Sharon Wrobel is a tech reporter for The Times of Israel.
The Israel Innovation Authority, in charge of directing the nation’s tech policies, will invest NIS 35 million ($9.6 million) to encourage and help tech companies expand their operations in the war-battered north and south of the country.
The funding — initiated in cooperation with the Ministry for the Development of the Negev, Galilee, and National Resilience; the Tekuma Authority, which administers the Gaza border region; and the Social Equality Ministry — is part of a program to support tech companies in opening new branches, hiring local talent, and fostering economic growth in the Negev and Galilee.
“The program is designed to reduce the risk for high-tech companies considering following the path of many others and opening operations outside of their main headquarters,” said Israel Innovation Authority CEO Dror Bin. It “aims to expand the human capital available to companies and also assists local entities in the periphery in offering high-tech companies an attractive package for establishing new activities.”
Long touted as the growth engine of the Israeli economy, the tech sector accounts for around 25% of the country’s total income tax revenue and constitutes more than 10% of the workforce. However, employment opportunities in tech positions have mainly been concentrated in the center of Israel.
As part of the program, tech companies will be offered financial grants for practical training for inexperienced employees and funding for experienced employees who will mentor the new hires through on-the-job training.
“Strengthening employment in the Negev and Galilee is a priority,” said Yitzhak Wasserlauf, minister for the Development of the Negev, Galilee, and National Resilience. “The state has a vested interest in encouraging companies to expand their activities to the Negev and Galilee, thereby increasing quality employment and allowing talented young people to remain and build their future in these regions, while also attracting new, strong populations to the area.”
Even before the outbreak of war with the Hamas terror group following its October 7 onslaught, the tech industry had been facing an acute shortage of skilled engineers and programmers. This scarcity has in recent years propelled numerous government initiatives to try and integrate Israel’s underrepresented populations, including Arabs and the ultra-Orthodox, onto the tech bandwagon and other sectors in the economy, including construction, hospitality and medicine.
The massacre on October 7 saw Hamas terrorists rampage through southern Israel and kill some 1,200 people, mostly civilians, and kidnap 251, starting the ongoing war. Alongside the fighting in Gaza, Iran-backed Hamas ally Hezbollah has launched daily barrages of rockets into northern Israel for the past 10 months, trading fire with Israeli forces and fueling fears that the terror group’s attacks could escalate into a full-blown war.
The outbreak of war is posing a test to the integration efforts and initiatives that have been built up over the past two decades.
“The Arab community is undergoing significant changes, and there is a high-quality human capital within the Arab community with the skills needed to integrate into high-tech companies across various professions,” said Hassan Tawafra, head of the Economic Development Authority for the Minority Sector at the Social Equality Ministry. “Opening branches will allow companies to access this candidate pool and facilitate the integration of Arab workers into the industry.”
Alongside the program, the Economy and Industry Ministry launched an initiative to assist tech companies in the establishment and relocation of knowledge-intensive, high-salary operations in national priority areas and Jerusalem. As part of the initiative, tech companies will get a grant of up to 30% of the cost of new employees’ salaries.
