Israel has 5 Information Technology Hotspots within its borders located in the cities of Hafia, Herzliya, Jerusalem, Rehovot and Tel Aviv. The close proximity of these cities has created an IT cluster similar to that of California’s Silicon Valley –The entire are “is not larger than 6000 square kilometers, perhaps half the extended Silicon Valley.” (5) Named, “Silicon Wadi” the nation’s high tech cities have attracted investors such as Intel, Microsoft, IBM, Cisco, and Lucent Technologies.
The following is a current map of Israel highlighting the IT hot spots.
Israel center of technology is concentrated in cities through out the country but still relatively close in geographic distance. This IT cluster produces mainly software products for export.
Silicon Wadi vs. Silicon Valley
There are many similarities between the two IT clusters. They both produce a large number of IT startup firms annually. They also both attracted a large amount of venture capital and other investments funds from around the world from private investors, government and multi-national corporations alike. For more information on Investment programs in these areas please read the IT financing section of this paper.
Also found in these geographic IT clusters are a number of Incubator Programs that have contributed enormously to the success the high-tech industry in Israel. The incubator programs are a result of the governments sustained effort to make Israel a source of high technology based goods and services. More information on the Israel Incubator Programs can be found in the Government Policies section of this paper.
The following chart is a breakdown of the the percentage of electronics and hardware firms located in the different regions of Israel. As indicated in the above map the majority of industry activity is located in the central region of the country.
Table 1: Electronics and hardware industries
Total: 158 electronics & hardware firms