Tel Aviv has doubled the number of International R&D centers in the city over the past 5 years from 35 R&D centers in 2012, to 73 centers today or 20% of all R&D centers in Israel, according to a recent report by Tel Aviv Global based on data from an IVC Research conducted in preparation for the DLD Tel Aviv Innovation Festival (Sept 3-7, 2017). These 73 international R&D centers provide over 6,200 jobs, introduce new capital and knowledge to the city's well developed tech ecosystem and further boost Tel Aviv's global standing.
The International credit card giant, Visa just recently decided to establish a fintech R&D center in Tel Aviv, joining Renault, Bosch, MasterCard, Google, Facebook, Amazon, Coca Cola, Microsoft, AOL, Samsung, Siemens, Paypal, Deutsche Telekom, Citibank, Intel, Yahoo, Barclays, IBM, Apple and other multinational companies. The Tel Aviv ecosystem is considered a leader in the nurturing of entrepreneurial spirit and is home to numerous startups, collaborative workspaces and accelerator programs creating an attractive environment for international venture capital firms and R&D centers.
The report also surveyed the growth of the city's high-tech sector. Tel Aviv is home to 2,000 high-tech companies comprising about 25% of the high tech companies in Israel. These tech companies influence the local workforce, as 10% of jobs in the city are in the high-tech sector.
The report also identified a shift in the Tel Aviv startup ecosystem. The rate of seed-stage companies has fallen and the rate of R&D-stage companies has risen, in line with the overall trend in Israel. This shift in the composition of startups reflects a maturation of startups in the city and their progression from idea stage to a process of R&D.
The city's global economic development unit, Tel Aviv Global, plans to focus on attracting even more big names to the city in 2018. A new municipal policy offers city-tax breaks and a "red carpet" package - assisting entrepreneurs in all aspects of setting up international activity in the city.
Tel Aviv-Jaffa Mayor Ron Huldai, " Our startup community has gained global recognition, and thanks to it, Tel Aviv-Jaffa is recognized as one of the most attractive cities for technological development. The Municipality invests major efforts to promote our creative ecosystem with incentives that are meant to encourage our startup community and signal how important it is in our eyes to Tel Aviv’s economy, its global positioning, and most importantly - the energetic spirit of its people."
Tel Aviv Global CEO Eytan Schwartz said, "We understand that for our high-tech sector to grow, it must open the market to foreign talent. Tel Aviv Global is working with our governmental partners on continuing the process of: attracting international R&D centers; opening international accelerators; encouraging foreign entrepreneurs to work in the city; and promoting the activity of global corporations with an emphasis on Chinese companies."
Published by Globes [online], Israel business news - www.globes-online.com - on September 5, 2017
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