For decades, the Israeli high-tech industry was considered the growth engine of the Israeli economy. Indeed, in the past, high- tech output grew at a significantly higher pace compared to other sectors, leading the overall GDP growth of the Israeli economy.

Commissioned by the Authority, the Central Bureau of Statistics computed updated data about high-tech output (2019 data is still not complete), presented in Figure 1.3. The data suggests that in recent years, high-tech output growth was in line with overall GDP growth. The Israeli high-tech industry is no longer a “growth engine”. It is now one of many railcars, growing at a similar pace to other sectors.