A recent survey conducted by Start-Up Nation Central has shed light on the sentiment of Israel’s high-tech ecosystem regarding the government’s judicial legislation efforts and the resulting civil unrest. The survey, which had a participation rate of 14%, targeted over 8,000 CEOs, founders, managing directors of investment firms, and general managers of multinational corporations.
The high-tech ecosystem is a crucial economic engine for Israel, contributing about 16% of gross domestic product and consisting of over 7,300 companies, 400 venture and investment funds, and 500 multinational corporations’ innovation and R&D centers. The sector employs 11% of the Israeli workforce, totaling about 400,000 people, and contributes over 25% of the total income tax collections by the Israeli government.
The survey, which has been analyzed by Prof. Camil Fuchs, professor emeritus of statistics at Tel Aviv University, found that the judicial legislation efforts have had a negative impact on the high-tech ecosystem’s sentiment and the ability to attract foreign investors. In response, the ecosystem is planning to increase lobbying efforts to influence the government’s policy decisions.
The survey also found that the global macro-economic challenging environment has impacted the high-tech sector, causing concerns about access to capital, talent retention, and market growth.