Tel Aviv, Israel’s hi-tech center, is seeking to attract a larger number of global companies to set up research and development (R&D) facilities in the city center. In fact, to-date, Tel Aviv has attracted some 73 international R&D centers — a 5th of all Israel’s R&D centers, with companies like Renault, Google, Visa, and Bosch having set up local research facilities.
According to a report by Tel Aviv Global, the city’s worldwide economic development unit, and IVC Research Center that follows the high-tech industry, this has not only opened up more than 6,200 local jobs, but introduced new capital and knowledge to the city’s tech ecosystem. Furthermore, Tel Aviv boasts around 2,000 hi-tech corporations equaling nearly a quarter of Israel’s tech companies. According to the report, 1 out of every 10 jobs is in the high-tech sector.
To entice still bigger names to the metropolitan in 2018, Tel Aviv Global has established a novel policy proffering local tax incentives and, what the municipality calls, a “red carpet” package that will help entrepreneurs set up shop there.
Tel Aviv Global CEO, Eytan Schwartz, commented that they appreciate that to nurture the high-tech segment, Israel must attract extraneous talent. Working in conjunction with governmental associates, Tel Aviv Global moving forward in enticing global R&D centers; opening international accelerators; inspiring entrepreneurs from abroad to operate in Tel Aviv and endorsing international corporations’ activity especially companies from China.
The growth rate in the number of high-tech companies situated in Tel Aviv-Yafo is far higher than that of Israel overall and is predominantly higher in terms of employees: the growth rate in the number of startup workers in Tel Aviv-Yafo is 66%, double that of the rest of Israel (36%). Also, since 2016, in Tel Aviv and its surrounding cities was home to around half of all Israeli high-tech companies and 40% of all International R&D centers.
The Tel-Aviv-Yafo municipality says it has already instigated a scheme to draw Israeli tech companies by: dropping the level of taxes paid by early-age startups; applying an open data policy and allowing tech pilot projects in the public space through a distinct municipal startup committee; opening a number of co-working spaces for entrepreneurs; connecting the city with free WiFi; and supporting tech-related events and conferences.
In a statement, Tel Aviv’s Municipal Innovation and Entrepreneurship Center, aka the Platform, also pointed out that this is one of a rare sites in Israel wherein global tech employees can acquire 24-month-long working visas.