Public-private partnership secures a total of 29 million NIS investment to boost high-tech in peripheral regions
The Israel Innovation Authority announced today the approval of 15 projects under its “Startup for High-Tech” program to establish new branches of high-tech companies in priority areas across Israel, spanning from the north to the south. The initiative, undertaken in collaboration with the Ministry for the Development of the Negev, Galilee, and National Resilience; the Ministry for Social Equality (as part of the 550 Five-Year Plan); the Tkumah Directorate; and the Ministry of Jerusalem and Heritage, represents a combined investment of 16 million NIS from government ministries and 13 million NIS in private funding, amounting to a total of approximately 29 million NIS.
The selected projects aim to establish the new high-tech branches within six months, with an operational period of 12-24 months. The goal is for these branches to continue operating independently after this period, contributing significantly to the development of peripheral regions and strengthening the high-tech industry as a whole.
Winning Projects Include:
- “ITWorks Empowering People”: This company specializes in recruitment, mentoring, and employment for underrepresented populations. Branch offices will be opened in East Jerusalem, Julis, and the Triangle region.
- “Place.IL Association”: Focused on integrating underrepresented populations into leading high-tech companies, new branches will be established in the Tkumah region.
- “Or Movement”: Supporting the establishment of high-tech branches in the western Negev and Tkumah region.
- NorthMed Innovation Center in Sakhnin: In collaboration with Gissok, new branches specializing in VLSI and other high-tech fields will be established in northern peripheral areas.
- TSG IT Advanced Systems: Developing control, monitoring, and emergency preparedness systems, a branch will be opened in Ariel in partnership with the Innovatech Innovation Center.
- SeaNovation Eilat Eilot Ltd.: Partnering with Qualitest to open a branch in Eilat.
- Qassem High-Tech Park Ltd.: Partnering with SUNUP to establish branches specializing in smart home technology and cyber analytics, in collaboration with CyberArk.
- Desert Innovation for Desert and climate technologies: Establishing two branches in data and drone technologies in collaboration with Tech19 and Negev19.
- Techlinic Innovation Center: Opening development team branches in East Jerusalem.
- NorthMed Innovation Center: Establishing six branches in the northern periphery.
- GSOC in collaboration with the Golan Economic Corporation: Opening a branch in the Golan Heights specializing in ASIC VLSI.
- Nistec Merkaz Ltd.: Opening an R&D branch in the Golan Heights.
According to the Israel Innovation Authority’s 2024 annual report, most growth in high-tech employment in Israel stems from research and development roles, primarily concentrated in central Israel. At the same time, the past year has seen a significant decline in available positions, particularly for juniors without prior experience. This challenge makes it difficult for underrepresented populations and peripheral regions to gain the initial experience necessary for entering the industry.
The “Startup for High-Tech” program seeks to address this trend by creating new employment opportunities in peripheral regions, aiming to expand the geographic distribution of Israel’s high-tech industry and the available human capital. The program will help juniors gain practical experience through internships of at least six months, allowing them to integrate into the companies they intern with or gain valuable experience for other roles in the high-tech sector.