The Israel Innovation Authority has published its 2026 High-Tech Status Report: Israel’s high-tech sector grew 8.2% in 2025, fundraising rose 30%, and both exits and high-tech’s share of Israeli exports reached record levels. In total, the sector generated $85 billion in exports, $84 billion in exits, and nearly $15 billion in fundraising.
At the same time, the report recorded the first decline in R&D employee numbers in Israel in a decade, a rising number of relocation inquiries, and a continued shift of operations, management, and R&D activity by Israeli companies abroad. By March 2026, only 62% of employees at private Israeli tech companies were based in Israel, down from 69% in 2019.
The number of Israeli high-tech employees rose to roughly 400,000 in 2025 (11.4% of all employees in Israel), and around 775 new start-ups were founded. Israel remains one of the world’s leading tech hubs, ranking 4th globally in fundraising in 2025.
Dror Bin, CEO of the Israel Innovation Authority, said the report shows Israeli high-tech standing at a crossroads: despite its impressive strength, a growing share of activity, talent, and capital is shifting abroad — a long-term risk to the relative advantage the Start-up Nation was built on.