According to data from the Central Bureau of Statistics, Israel’s national expenditure on civil R&D reached an unprecedented level in 2023. Despite a slight 1.4% decrease in constant prices, the total expenditure rose to 119.3 billion shekels, representing 6.3% of the gross domestic product (GDP), up from 6.1% in 2022. This figure reinforces Israel’s status as a global leader in R&D investment.
The business sector remains the primary driver behind Israel’s R&D investment, accounting for 93% of the total national expenditure on civil research and development in 2023. This comes despite a slight 1.5% decline in spending in constant prices, contrasting with significant increases of 14.6% and 13.7% in 2022 and 2021, respectively. The software programming and computer consulting sector, along with the scientific research and development sector, led business sector investments.
The main funding sources for R&D in Israel remained stable, with 47.2% of funding coming from the business sector and 45.4% from abroad in 2022. This highlights Israel’s attractiveness to multinational companies and foreign investors in the R&D sector.
The number of R&D employees in the business sector continued to grow, with a 6.2% increase in 2022, reaching 145,026 workers. Of these, 79.9% hold bachelor’s and master’s degrees, underscoring the high quality of the workforce involved in research and development in Israel.
The government continues to support R&D efforts, with expenditures reaching 10 billion shekels in 2023. Of this, 52.3% was allocated to the promotion of general knowledge, mainly through funding higher education institutions, while 34.1% was dedicated to advancing industrial technologies.
In international comparison, Israel continues to lead OECD countries with the highest R&D expenditure as a percentage of GDP, standing at 6.1% in 2022. The per capita expenditure of $3,217.9 (in PPP terms) in 2022 was among the highest in OECD countries.
These figures underscore Israel’s ongoing commitment to innovation and research, solidifying its position as a leading “Startup Nation” in the global R&D landscape.
