JERUSALEM, May 31 (Xinhua) -- Israel's hi-tech sector grew by 8.2 percent in 2025 despite mounting structural challenges, according to an annual report released by the Israel Innovation Authority on Sunday.
The sector grew by 8.2 percent last year and accounted for about half of Israel's overall economic growth. Exports reached 85 billion U.S. dollars, representing approximately 58 percent of the country's total exports, while venture capital fundraising totaled about 15 billion dollars, said the 2026 High-Tech Status Report.
However, the report also points to a decline in research and development employment in Israel and a continued relocation of business activities, management functions, and development roles to the United States and other countries.
While employment in the sector reached about 400,000 workers and startup formation increased, the findings highlighted a structural shift toward overseas operations, greater reliance on foreign capital, and a growing focus on artificial intelligence and other advanced technologies. ■
