Bolstered by Business Sector, Israel's National R&D Expenditure Hits 4.5% of GDP in 2017

In 2017, Israel's national expenditure on civilian research and development amounted to almost $16 billion (NIS 57.8 billion), or 4.5% of Israel's gross domestic product (GDP), according to a Monday report by the country's Central Bureau of Statistics. In constant prices, the sum is a 5% increase from 2016, when expenditure accounted for 4.4% of GDP.

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The business sector accounted for 86% of the total national expenditure (NIS 49.8 billion), with a 5.6% year-to-year increase at current prices, bolstered by a very high concentration of research and development outposts of multinationals found in Israel.

The expenditure on scientific research and development—which includes activities in startups, local outposts owned by multinational businesses, incubators and research institutes—increased by 5.9% in 2017, according to the bureau. The expenditure on research and development at outposts owned by multinationals amounted to NIS 24.1 billion in 2016, an increase of 8.7% from 2016.

According to the bureau, in 2016, non-Israeli capital financed 55.6% of the civilian research and development expenditure in Israel. The bureau did not provide data for 2017.

Of the remaining 14% of the total national expenditure for 2017, universities account for 11.4%, the general government sector for 1.6%, and private non-profits for 1%. Of the NIS 7.7 billion the government spent, most was allocated to business companies and to universities.