Israel: Facts & Stats

ECONOMY

Industry:

More than half of the industrial establishments are in the Tel Aviv-Yafo area, but a great deal of heavy industry is concentrated around Haifa. Most plants are privately owned. State enterprises are mainly devoted to exploitation of natural resources in the Negev; some other enterprises are controlled by the Histadrut. Israel is research and development-oriented. Hundreds of foreign companies have invested in Israel during the 1990s, the bulk in strategic high-technology projects in such fields as aviation, communications, computer-aided design and manufacturing (CAD/CAM), medical electronics, fine chemicals, pharmaceuticals, solar energy, and sophisticated irrigation. Over 88% of the increase exports in the 1990s.

Major expansion has taken place in textiles, machinery and transport equipment, metallurgy, mineral processing, electrical products, precision instruments, and chemicals. However, industry remains handicapped by reliance on imported raw materials, relatively high wage costs, low productivity, and inflation. Incentive schemes and productivity councils, representing workers and management, have been set up in an attempt to increase work output. Whereas in the past Israel's industry concentrated on consumer goods, by the 1980s it was stressing the manufacture of capital goods.

Agriculture:

The importance of agriculture in Israel's economy has fallen over time, accounting for decreasing values of GDP. In 1979, it accounted for just under 6% of GDP, in 1985 5.1%, and today, 2.5%. In 1995, there were 43,000 farm units with an average size of 13.5 hectares. 19.8% of these were smaller than 1 hectare, 75.7% were 1 to 9 hectares in size, 3.3% were between 10 and 49 hectares, 0.4% were between 50 and 190 hectares, and 0.8% were larger than 200 hectares. Of the 380,000 hectares under cultivation in 1995, 20.8% was under permanent cultivation and 79.2% under rotating cultivation. Farm units included 160,000 hectares used for activities other than cultivation. Cultivation was based mainly in the northern coastal plains, the hills of the interior, and the upper Jordan Valley.

In 2006, agricultural output in Israel fell by 0.6% following a 3.6% rise in 2005, whilst inputs for this year rose by 1.2% excluding wages. Between 2004 and 2006, vegetables consistently saw the greatest outputs, accounting for around 35% of total agricultural output. Flowers made up around 20%, field crops made up around 18%, fruits (other than citrus), around 15%, and citrus fruits around 10%. In 2006, 36.7% of agricultural output was for domestic consumption, 33.9% for domestic manufacturing, and 22% for direct export. In 2006, 33% of vegetables, 27% of flowers, 16% of field crops, 15.5% of fruits other than citrus, and 9% of citrus fruits were exported.

Research & Development:

R&D in Israel is carried out primarily at seven universities, dozens of government and public research institutes, and hundreds of civilian and military enterprises. Significant research is also performed at medical centers and by a number of public service firms, in fields such as telecommunications, power production, and water resources management.

Government and public bodies are primary sources of R&D funding, providing financial support for well over half of Israel’s R&D activities. The major share of these funds for civilian R&D purposes is allocated for economic development, mainly in the industrial and agricultural sectors, which, in comparison with other countries, constitutes a very large part of the total. Over 40 percent is used to advance knowledge through national, binational, and government research funds and through individual university allocations from the General University Fund administered by the Council of Higher Education. The remainder is dedicated to various health and social welfare fields.

Over 80 percent of all publishable Israeli research - and almost all basic research and basic research training - is conducted within the universities. The Israel Science Foundation (ISF), a legally independent body, is the predominant source of competitive basic research funding. Some 1,000 individual researchers receive grants from ISF, matched with university funding. ISF also funds special programs, such as Israel’s participation in building the ATLAS detector for the Large Hadron Collider at CERN, and improving the quality of clinical research via an innovative series of ‘physician-researcher’ grants.

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