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Rise of 225 percent in high-tech deals in Israel
Business transactions total $12.04 billion in 2006, compared to approximately $3.7 billion in 2005, on backdrop of more than 300-percent rise in extent of companies' purchases
"The high-tech industry continues to contribute significantly to the entry of foreign investors and companies into the Israeli industry, serving as an important springboard for other industries in the economy," Eli Barkat, co-chairman of the annual high-tech conference held by the Israel Venture Association (IVA), said Sunday.

 

"The high-tech's continued success must be perceived as a national effort," he added.

 

Date presented during the conference by the D&A business information company showed that high-tech deals carried out in Israel in 2006 totaled $12.047 billion, compared to approximately $3.7 billion in 2005, a rise of 225 percent.

 

In total, all high-tech business transactions carried out in Israel in the past decade (1997-2006) amounted to approximately $55 billion.

 

These transactions include private fund raisings by start-up companies, public stock issues and purchasing deals. Start-up companies raised $1.260 billion last year, compared to $1.215 billion in 2005.

 

The companies' purchasing deals totaled $10.123 billion, compared to $2.424 billion last year – a rise of 318 percent.

 

Direct added value to Israeli economy

Gilai Dolev, research manager at D&A, estimated that the investments carried out by venture capital funds were directly responsible for the creation of half of the job openings in the high-tech industry – 35,000-40,000 out of the industry's 70,000 workers.

 

Overall, the high-tech industry contributes to the Israeli economy about $7 billion a year from employees' salaries, constituting approximately 2.5 percent of Israel's workforce (excluding the defense industries). These workers produce about 6 percent of Israel's gross national project, estimated at $165 billion.

 

"The Israeli high-tech industry is responsible for 50 percent of the industrial exports (excluding the defense industry)," said Dolev. "It is growing at a rate of 12 percent a year and serves as a significant engine for the economy's general growth objectives, aimed at 6 percent.

 

"The ongoing growth in the high-tech industry brings a direct added value to the rest of the economy and causes the acceleration of commerce, services, asset sales, tax growth, development of non-profit organizations, and the welfare of all the State's citizens in general."

 


פרסום ראשון: 06.11.07, 07:58
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