1. Overview of the R&I system
The Israeli innovation system is a dynamic one, with a large investment in R&D mostly from private funding and almost half of it coming from foreign investors.
Israel has an active start-up sector and the high tech industry is particularly dynamic, especially in some sectors like ICT. All important multinationals in this sector have research labs in Israel: Google, IBM and Microsoft.
The dynamic industrial sector is combined with a vibrant academic environment, which fosters the creation of new knowledge in a wide variety of topics. Collaboration and links are frequent, and successful innovations come to the market every year out of these collaborations, while the number of publications per capita is among the highest in the world.
All this makes Israel a world leader in innovation, which is reflected in any international ranking. In Europe, only Sweden, Switzerland and Finland show higher levels of innovation performance. Israel is ranked second (to the United States) worldwide in terms of venture capital availability, thus ensuring the right conditions for highly innovative small companies across all sectors.