Intel, Microsoft, Motorola, and Google are some of the leading international corporations that have established Israeli branches for research, development and manufacturing. Information technology, originally a state-initiated field, is now increasingly sustained through private enterprises.

GOVERNMENT INVOLVEMENT

The Israeli government invests about 4.6 percent of its gross domestic product directly into research and development of high technology making Israel the second largest market in the world. The Israeli security forces have been a driving force in the development of advanced military technology and telecommunications for intelligence purposes. Different branches of the government coordinate with the Office of the Chief Scientist to fund, supervise and oversee technological developments related to infrastructure, agriculture, and health.  

GROWTH & ADVANCEMENT

Eighty percent of approximately 3,000 Israeli high tech ventures are less than 10 years old, making it a young and rapidly-evolving market. About half of all start-ups in 2007 were in communications. Biotechnology companies have grown at a steady pace, averaging 14 percent per year in the last decade. Additionally, software- and computer-related goods and services grew from $3.6 billion in 2002 to over $6 billion in 2007.

FUTURE PROSPECTS

Israel's high tech industry has recently experienced a brain drain as highly skilled workers seek jobs abroad. Additionally, multinational corporations with much higher pay scales have monopolized the workforce, making it difficult for local companies to compete.  The current worldwide economic recession has compounded these problems, inevitably slowing the economy.