Jerusalem, 15 November, 2026 (TPS-IL) — Israel’s national expenditure on research and development totaled 141.2 billion Shekels ($44.3 billion) in 2025—representing 6.6% of GDP, down from 7.0% in 2024—according to data published by Jerusalem’s Central Bureau of Statistics. At constant prices, overall R&D spending declined by 3.3% year-over-year, driven largely by a 3.6% real contraction within the business sector.
Despite the downturn, Israel retained the highest per capita R&D investment among all OECD member states, reaching $4,041 in purchasing power parity terms in 2024.
This global lead is anchored by dense clusters of multinational development centers concentrated across Tel Aviv’s coastal tech corridor (“Silicon Wadi”), Herzliya, Haifa, and Jerusalem.
Foreign investors funded 46.5% of total R&D in 2024, while Israeli businesses financed 43.1%, and government allocations primarily supported academic research and industrial technology.
