Jerusalem Is an International Tech Capital in Its Own Right, Says Israeli Minister

Israel’s Minister of Jerusalem and Heritage and Environmental Protection Ze’ev Elkin said on Tuesday that Jerusalem is about to be listed among the 20 most innovative cities in the world. Mr. Elkin spoke at the Mind the Tech conference in New York, hosted by Calcalist in collaboration with Bank Leumi and the Israeli Ministry of Jerusalem and Heritage.

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“Jerusalem is not just a city of the past; it is also a city of the future,” Mr. Elkin said. “Israel is a leader in innovation and Jerusalem is a first-rate international tech capital in its own right.”

Ze’ev Elkin. Photo: Orel Cohen

According to Mr. Elkin, in 2012, only 20 new technology companies were established in Jerusalem, compared with 100 new companies established there each year in 2014 and 2015. Today, Mr. Elkin said, there are 600 Jerusalem-based tech companies. Equity funding in Jerusalem was less than NIS 60 million in 2016, compared with NIS 250 million in 2017.

Mr. Elkin said that part of Jerusalem's technological advancement could be attributed to the 12 startup incubators and accelerators operating in the city. These include the MassChallenge accelerator, founded in Boston and operating in the U.K., Switzerland, Mexico, and since 2016, in Jerusalem.

“The accelerator’s third round will open in 2018, hosting more than 50 startups from all over the world,” Mr. Elkin said. “It is the largest accelerator in the country and through it, Jerusalem is becoming an international center of technological innovation.”

Mr. Elkin also mentioned Jest, the only accelerator operating in primarily Arab East Jerusalem, which is promoting Arab tech entrepreneurs in Israel.

Mr. Elkin said that 14,500 people are employed in Jerusalem’s tech sector, including ultra-orthodox Jews and Arabs with Israeli citizenship, which are under-represented in Israel tech sector.

“We believe that Jerusalem’s potential is due to its demographic diversity,” Mr. Elkin said. “Today, a third of the city’s residents are ultra-orthodox Jews. We believe that in order to let them into the workforce we must integrate them into academia and industry in Jerusalem.”