Israeli Innovation: How the Startup Nation Changed the World

“Necessity is the mother of invention.” When Israel was established in 1948, it was a country with very limited natural resources. But there was one thing it was blessed with — people with extraordinary creativity. Today, more than 75 years later, Israel stands as the number one country in innovations per capita. Declared a “startup nation” with breakthroughs in science, technology, agriculture, medicine, and defense, Israel has transformed into a global hub of innovation that addresses key issues affecting life on our planet.

What Makes Israel So Innovative?

Several factors have driven Israel’s success in innovation:

• The Israeli government allocates 4.1% of its budget to R&D — the second highest percentage in the world.
• The education system produces one of the highest numbers of scientists and engineers per capita globally.
• A culture of flexibility, creativity, and rapid problem-solving drives business performance.
• Investment legislation offers reduced tax rates and grants for international companies operating in Israel.
• Government incentive programs provide job grants for R&D centers, covering an average of 25% of payroll costs for new employees over four years.

Iron Dome

Developed by Rafael Advanced Defense Systems and funded largely by the United States, Iron Dome was born as a response to the 2006 Lebanon War, during which Hezbollah fired over 4,000 rockets at Israel. The system intercepts missiles launched from ranges of 4 to 70 km and operates day and night in all weather conditions. With a success rate of approximately 90%, Iron Dome is one of the most successful projects of the Israeli military industry.

Netafim — Drip Irrigation

Water scarcity was a critical challenge for Israeli farmers in a mostly arid climate. Engineer Simcha Blass changed agriculture forever when he observed two trees growing in the same environment — one significantly larger than the other. He noticed a dripping water pipe near the bigger tree and realized that small, consistent drops were enough to make it thrive. From this observation, Blass developed drip irrigation — a system of pipes with small holes that deliver water directly to plant roots. Netafim’s technology increased crop yields by 70% while reducing water usage by 50%. Today, it is used by farmers in over 110 countries.

Watergen — Drinking Water from Thin Air

Founded in 2009 by Arye Kochavi, Watergen creates drinking water from air. The devices extract humidity using patented technology, condensing water molecules and producing clean, safe drinking water. Selected as one of the ten most prominent Israeli technological inventions and named by Time Magazine as one of the 100 most innovative inventions in the world in 2019, Watergen addresses the global lack of clean water access.

Mobileye — Preventing Car Accidents

In 1999, Amnon Shashua and Ziv Aviram developed a tiny camera with unique algorithms that prevents car accidents. The Mobileye device provides real-time alerts about hazards, lane deviation, pedestrians, cyclists, and speed signs. It serves as an advanced driver-assistance system and the infrastructure for autonomous vehicles. In 2017, Intel acquired Mobileye for $15.3 billion, and dozens of car manufacturers worldwide now use the technology.

Water Desalination

To cope with chronic water shortages, Israel turned to desalination of Mediterranean seawater. The innovation has made Israel a global leader in water desalination — as of 2015, more than half of the country’s drinking water comes from desalinated sources. Israel currently operates multiple desalination plants along its coast, with additional facilities under construction.

Waze — Community-Based Navigation

A combination of the words “ways” and “maze,” Waze was developed by Ehud Shabtai after he grew frustrated with a GPS that could give directions but couldn’t provide real-time traffic information. Together with his colleagues, he created a community-based navigation system using crowdsourced data about traffic conditions, accidents, and roadwork. Waze now serves nearly 100 million users worldwide. Google acquired the company for $1.1 billion in 2013.

Checkpoint Software Technologies

Founded in 1993 by 25-year-old Gil Shwed and two friends in a small apartment in Ramat Gan, Checkpoint built the modern commercial firewall — offering computers worldwide protection from cyberspace dangers. Today, with approximately 100,000 users and 2,300 employees worldwide, the company is one of the world’s leading IT security providers.

More Groundbreaking Innovations

SniffPhone: A portable device that connects to a phone and can analyze breath to detect certain cancers, Parkinson’s disease, dementia, and multiple sclerosis — with 86-93% accuracy.

Nano Dimension: Established in 2012, this company developed 3D printers that allow electronics engineers to print entire circuit boards in hours — used across consumer products, medical equipment, security, aerospace, and automotive industries.

ReWalk: After a tragic accident left Dr. Amit Goffer paralyzed, he spent years designing an exoskeleton robot powered by a backpack battery that enables people with paraplegia to stand, walk, and even climb stairs. ReWalk gained worldwide recognition at the 2012 London Paralympics and 2014 London Marathon.

PillCam: Developed by scientist Gavriel Iddan, this digestible, disposable camera transmits images from inside the digestive tract. FDA-approved and now used worldwide, PillCam revolutionized the diagnosis of intestinal disorders and cancers. Iddan won the European Inventor Award in 2011.

BioBee: Founded in 1983 by Akiva Falk at Kibbutz Sde Eliyahu in the Jordan Valley, BioBee focuses on biological pest control — using bumblebees for pollination, friendly insects to attack harmful pests, and genetic modification to reduce pest reproduction. Today it is a multinational company, still headquartered at the kibbutz where it all began.

Where to See Innovation in Israel

Peres Center for Peace and Innovation: Founded in 1996 by former President Shimon Peres, this center in Jaffa features the Israeli Innovation Center — a fascinating immersive journey through the stories behind Israel’s greatest innovations.

Taglit Innovation Center: Located at the Tel Aviv Stock Exchange, this cutting-edge visitor center presents the Israeli startup ecosystem with interactive exhibitions and intimate sessions with Israeli entrepreneurs. Over 120,000 visitors have toured the center since 2016, including students, business delegations, and diplomats from around the world.

Israel’s innovation story is not just something you read about — it’s something you can experience firsthand. To include innovation-focused visits in your Israel itinerary, contact Hoshen Tours.