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Jerusalem –
Israel’s vital tech sector, dragged down by the war in Gaza, is showing early signs of recovery, buoyed by a surge in defense innovation and fresh investment momentum.
Cutting-edge technologies represent 17% of the country’s GDP, 11.5% of jobs and 57% of exports, according to the latest available data from the Israel Innovation Authority (IIA), published in September 2025.
But like the rest of the economy, the sector was not spared the knock-on effects of the war, which began in October 2023 and led to staffing shortages and skittishness from would-be backers.
