BDO LLP | INTERNATIONAL TECH HUB
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The main tech activity takes place in two sites, each about 50 km from Tel Aviv – one to the north, and one to the south. Tel Aviv and its suburbs have historically always been the centre of Israel’s tech activity, and it all happens here within an area of about a couple of dozen square kilometres. Because of the country’s limited footprint and the critical importance of tech and startup culture to the country, the state has also in the last couple of years begun developing some new areas, such as in Jerusalem, Haifa, Kiryat Gat and the Yokneam area. The government is keen to encourage investment and expansion into these areas, and there are tax incentives and grants available for businesses that move into and employ people in these areas. TALENT POOL A striking development in the last 10-15 years or so is that the salaries of tech professionals – coders, developers, UX, IU and so on – have risen by as much as 300%, in recognition of the quality of talent here. Where once US companies might have swept in from Silicon Valley or Boston to swoop up top talent at relatively cheap rates, now they find that the salaries of skilled Israeli tech practitioners are on a par with US salaries. The strength of Israel’s tech talent is the ultimate source of its success. Where once every Jewish mother might have been proud to see their daughter or son become a doctor or lawyer, those traditional aspirational roles have given way to things like coding or software. And such sophisticated, well-trained and experienced people are always in very high demand here too: Israel always needs more. The Israel market offers a very high level of talented young people who will go on to become some of the world’s finest future technology leaders. There are good reasons for this, such as a sophisticated education system which continues to pump out new talent, and the maturity of a marketplace where all the world’s major tech players are represented and new ideas and businesses are vying for primacy every day. On top of that, however, is a unique
factor to Israel: the role of military service in developing tech talent. Every 18-year-old in Israel must do a year’s military service. The Israeli military has dedicated specialist technology units, backed by virtually unlimited resources, where young talents can hone and develop their skills in critical real-world situations such as cyber- security and counter-intelligence. While an American or European 18-year-old is practising coding in their bedroom, an equivalent Israeli could be engaged in real-life covert military scenarios that to their counterparts around the world would be familiar only from the movies. As a result, when they leave military service, their skills are extremely advanced in terms of experience and expertise, and just a step away from becoming highly paid professional specialists who are attractive to the best global tech firms.
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