70% Of High-Tech Firms In Israel Report Wartime Difficulties – Poll

More than two-thirds (70 percent) of Israeli high-tech companies have reported difficulties following the mass call-up of Israel Defense Forces reserve soldiers as the country responds to the deadly Hamas terror attacks on October 7, according to a new survey. 

The poll of 500 high-tech companies founded or operating in Israel was jointly conducted by the government’s Israel Innovation Authority and the Start-Up Nation Policy Institute (SNPI), an independent think tank. 

Most of the companies polled have seen around 10 percent of their workforce called to military service since the attacks, complicating day-to-day functioning. 

The companies also reported a downturn in performance among their respective workforces, as employees were suddenly coping with emotional distress following the attacks and in many cases dealing with childcare due to school closures. 

There was a difference in the major problems faced by early-stage companies and their more developed counterparts, with 47 percent of the former group reporting delayed or canceled investment, and 54 percent of the latter citing a reduction in productivity as the key issue. 

The IIA has already moved to counter some of the challenges facing the Israeli high-tech sector due to the war.  This week, it announced a 100-million shekel investment fund to support around 100 startups struggling to sustain financial backing during the conflict. 

The high-tech industry was the largest contributor to Israel’s national GDP in 2022, accounting for just over 18 percent or 290 billion shekels ($78B), according to the IIA. It was also responsible for 50 percent of the country’s foreign exports.