(JNS.org) The Israel Innovation Authority released its annual report on Wednesday, where it questioned whether Israel's high level of performance in the high-tech industry has reached a glass ceiling, while also calling on the government to prioritize ways to address future challenges to maintaining Israel's competitive edge.
The high-tech industry has experienced significant growth in recent years with Israeli companies raising $4.4 billion and made $8 billion worth of exits in 2015 alone, said the report, which was submitted to Prime Minister Benjamin Netanyahu last month.
But Israel's "competition position will erode, and its future performance will diminish" if they do not address infrastructure challenges such as the "shortage of skilled manpower" and the "continuing decline in government expenditure on R&D."
"The conclusion is that it is not enough to preserve the current high level of performance, while global competition is increasing. Moreover, the “business as usual” policy will lead to a significant erosion of the competitive position and the performance of the Israeli hi-tech industry," Israel Innovation Authority Chairman and Chief Scientist at the Ministry of Economy and Industry, Avi Hasson wrote.
The Israel Innovation Authority (formerly Office of Chief Scientist) was established to help address these challenges and plans to bring together "relevant bodies" to foster long-lasting economic prosperity for Israel.