Numerous enterprises in the southern region of Israel face distinctive challenges related to the type of technology they produce, presenting logistical obstacles for supply chains and research. The 7/10 massacre in Israel prompted the evacuation of tech communities in and around the Gaza Envelope, resulting in the abandonment of numerous companies and families in the area. Unlike conventional tech firms, which can more easily relocate, those in the south heavily depend on their external environment and were compelled to leave behind significant equipment and research during the conflict.
The aftermath of the war on the region has had a discernible impact in the realm of desertech, encompassing both hardware and software technologies. Sivan Cohen Shachari, DeserTech Manager from Be’er Sheva, emphasized the significance of developing the Negev and fostering economic growth, particularly in crucial areas such as water scarcity, land irrigation, and remote living. This disruption has had a major influence on companies like BugEra, which employs insects for bio-solutions and relies on ongoing data provided by flies in an experimental setting. The conflict presented considerable challenges for them and other regional companies.
Furthermore, companies located near the Gaza border, such as Growee, specializing in indoor farming apparatus, were compelled to evacuate with their materials to continue production due to the imminent danger posed by rocket fire. Despite the obstacles faced by companies in the region, the Southern Israel industry has attracted substantial investment and has had a significant impact on job creation.
Before the war, 15,000 Gazans would cross the border into Israel daily to work with Israelis, a practice that has ceased following the recent conflict. However, companies choosing to establish operations near Gaza now receive an additional 75% of their budget requests from the Israel Innovation Authority, a noteworthy increase from the 50% received in tech capital Tel Aviv. The objective is to create better job opportunities for the local community within the region.
Areas such as Nir Am, Sderot, and Ashkelon are currently grappling with challenges arising from the recent escalation in Gaza, including a shortage of manpower and access to necessary tools and services. Despite these difficulties, organizations such as SouthUp and DeserTech remain optimistic about the resilience and potential of the region’s tech industry. They are confident that, once conditions stabilize, there will be significant opportunities for startups in the Negev to develop essential technologies to address climate issues.
The spirit of innovation remains robust in southern Israel, and there is confidence that the region will recover and thrive once again. Companies operating in the Gaza Envelope are encouraged to share their stories with CTech to raise awareness of the challenges they are facing and their plans for the future.
Ultimately, the future of tech in southern Israel is positioned for success, with a renewed emphasis on resilience and the development of cutting-edge solutions that will benefit both the region and the world at large once the current adversity subsides.
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