In a recent opinion piece, Advocate Ron Abelski underscores the remarkable potential of Israeli high-tech and urges the government to implement strategic measures to safeguard and bolster this critical sector. The article was prompted by the observation of Jewish-American businessman Bill Ackman, who noted the pivotal role played by Israeli technology in protecting the country during a direct attack by Iran. Despite the contributions of high-tech to the Israeli economy, Abelski argues that the government is not doing enough to support the industry.
Israeli high-tech has been widely acclaimed as a primary driver of the country’s economic growth, attracting significant foreign investment and providing employment to hundreds of thousands of families. However, the industry experienced a downturn in 2023, marked by a sharp decline in foreign investments. The subsequent quarter also reflected a weakened investment ecosystem, exacerbated by anti-Israel sentiments in the US and Europe.
Amid these challenges, the author proposes several concrete steps that should be undertaken by the government to nurture and protect the high-tech sector. Firstly, the creation of a dedicated forum aimed at communicating the value and potential returns of investing in Israeli high-tech to international investors is recommended. The involvement of local and international industry players is crucial, underlining the strategic importance of maintaining Israel’s appeal as an investment destination.
Furthermore, the author advocates for increased government investment in local start-ups, complemented by matching programs for foreign investors and state-backed guarantees to safeguard investments from geopolitical events. Additionally, a comprehensive package of grants and benefits should be made available to companies raising foreign capital, including favourable tax treatment and reduced bureaucratic burdens.
Despite the challenges facing the Israeli high-tech industry, Abelski remains optimistic about its potential for growth and resilience. He emphasizes the resourcefulness of the Israeli people and calls for the state to leverage this unique strength in overcoming adversity and ushering in a new era of prosperity.
In conclusion, the urgent need for government intervention to support and protect the Israeli high-tech sector is a clarion call. Embracing this opportunity for growth and development can position Israel as a global leader in technology and innovation, ensuring a brighter and more prosperous future for the nation.
The author, a partner at the law firm of Epstein Rosenblum Maoz (ERM), specializes in mergers and acquisitions, venture capital investments and private equity.