Tech Briefs / Chief Scientist Warns of Slow Tech Growth

Indegy raises $6 million for cyber security; Intel agrees to buy $550 million in Israeli products and services over next five years.

Ora Coren
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High-tech.Credit: Bloomberg
Ora Coren

The Economy Ministry’s chief scientist expressed concern Monday about whether Israel would be able to retain its high-tech edge over the next two decades. “On indices of innovation and science, we’re at the cutting edge, and this is a very difficult position to maintain,” said the chief scientist, Avi Hasson. Israel’s high-tech industry is now growing more slowly than the overall economy, and South Korea has surpassed Israel in the percentage of gross domestic product spent on research and development, but one way to reverse that is to improve productivity in the high-tech sector, Hasson said. He said a proposed R&D bill, which the Knesset failed to approve before it dispersed ahead of the March election, aims to increase productivity, but admitted the government doesn’t have any magic solutions. (Ora Coren)

Indegy raises $6 million for cyber security

Industrial cyber-security technology developer Indegy said Monday it raised $6 million in its first fundraising round, led by angel investor Shlomo Kramer and the Magma Venture Partners. Formed in July by three graduates of the army’s Talpiot program — Barak Perelman, Mille Gandelsman and Ido Trivizki — the company has just seven employees but counts former Military Intelligence chief Amos Yadlin as an adviser. Indegy, which has developed a prototype for protecting critical infrastructure from cyber attacks, will use the proceeds to continue research and launch the product commercially. (Inbal Orpaz)

Intel agrees to buy $550 million from Israel over five years

Intel is expected to buy some $550 million in Israeli products and services over the next five years under an agreement the U.S. semiconductor giant signed with the Economy Ministry’s Industrial Cooperation Authority on Sunday. The agreement is the fourth between Intel and Israel, and is part of a wider agreement in which the government will subsidize an expansion and upgrade of the U.S. company’s Kiryat Gat fabrication plant. “This new offset agreement is expected to have a positive economic effect on hundreds of small and medium-sized suppliers in Israel,” said Ziva Eiger, the newly appointed head of the authority. Maxine Fassberg, Intel Israel’s CEO, estimated that the company had made some $10 billion on offset purchases over the past decade. (TheMarker)