Multinationals Open More Than 20 R&D Centers a Year in Israel

Multinational corporations operate 344 research and development centers in Israel

IBM offices in Petach Tikva, Israel
Nir Keidar

Multinational corporations maintain a total of 344 research and development centers in Israel (with some having more than one R&D center), data collected by Startup Nation Finder shows.

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The first multinational’s R&D center was established by IBM in 1972 while the newest overseas player with a center here is CIMS, a Chinese electronics quality control company. Between 1989 and 2004, multinationals opened R&D centers at the average rate of 3.6 per year, but the pace then picked up, the data show. Between 2014 and the first half of this year, 117 R&D centers were opened by multinationals from 21 countries – at an average rate of 23.4 per year.

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At least 80 of the 117 were the result of acquisitions of Israeli startups, the data show. Over the past five years, most of the multinationals opening new R&D centers opened in Israel were American.

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The DataNation series is published in collaboration with Start-Up Nation Central and is based on information and insights collected and analyzed by the organization. Start-Up Nation Finder maps the Israeli high-tech industry and connects the world to Israeli start-ups, investors and innovation programs.