High tech is often referred to as the “locomotive” of Israel’s economy and is responsible for a third of the country’s income tax revenue.
According to a report by the Israel Innovation Authority and the Finance Ministry, tech workers and companies in the sector provide a third of Israel’s income tax revenue.
“Today’s data highlights the fact that Israel’s natural resource is human capital – responsible for most of the state’s revenue from high-tech,” said Israel Innovation Authority CEO Dror Bin. “High-tech serves as the ‘growth engine’ of the economy and acts as a ‘shock absorber’ during crises.”
“The insights from this analysis reinforce the importance of government action to protect the sector and ensure its continued growth, even during economic slowdowns,” Bin said.
In 2023, Israel’s tech industry contributed 20% of the GDP or 340 billion NIS and comprised 53% of exports.
