The Israeli tech industry has been a global leader in innovation, particularly in fields like cybersecurity, artificial intelligence, and biotechnology. This success has been attributed to a combination of factors, including a strong entrepreneurial spirit, a highly skilled workforce, and a supportive government environment. Despite the ongoing war with Hamas, Israel’s tech industry has continued to thrive, raising over $9 billion in funding since the conflict started.

High-tech drives Israel’s economy and accounts for 16% of employment, more than half of Israel’s exports, a third of income taxes and 20% of its overall economic output. Bin expressed concerns that employment in the sector has remained stagnant, which could curb income tax when the state needs funds to finance the war. At the same time, most investment is in mature startups and cybersecurity firms, while other areas are suffering. “We are looking at something that might evolve to be a problem,” said Bin, adding that many good companies that should be funded are currently having trouble. To that end the IIA has a number of programmes to help smaller startups stay afloat.

* **The Ukraine War: A Catalyst for Defense Tech Innovation**
* **Startup Boom:

* **War and Tech Startups:** The war in Ukraine has created a surge in demand for defense technology, leading to a boom in new startups. * **Urgency and Innovation:** The urgency of the situation has spurred innovation and accelerated the development of new defense technologies. * **Investment and Funding:** The war has attracted significant investment and funding for defense technology startups.

(Reporting by Steven Scheer, Editing by Louise Heavens)