Post on 21-Nov-2021
Multinational Corporations - Contribution to the Israeli Tech Eco-system
December 2020
REVIEW BY IVC RESEARCH CENTER
Overview in Numbers
• 387 active multinationals in Israel in 2020.
• 137 IT & Enterprise Software active companies – the leading sector with the highest number of MNCs.
• Leading Sub-Sectors: Enterprise Applications, Security, Industrial Technologies and Mobile Applications.
• Approx. 68,000 employees are employed by MNCs in Israel.
• Leading cities in Israel with MNC presence: Tel-Aviv-Yafo, Herzliya, Petach Tikva and Haifa.
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Number of MNCs Established by Year: 2010–2020
• Number of active multinationals in Israel in December 2020 – 387.
• The last decade was significant for multinational corporation activity in Israel.
Data for 2020 is not final and is subject to change in the coming months as more information becomes available
215236 244
261
295
327348 346 351
375 387
26 30 23 32 40 42 4115 24 33
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2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
# of Active MNCs # of Established MNC's
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5333
2928
2319
121212
1010
98
7666666
Enterprise Applications
Security
Industrial Technologies
Mobile Applications
Medical Devices
Business Analytics
Biotechnology
Digital Health
Enterprise Infrastructure
Miscellaneous Software
Design & Development Tools
Agrotech
Online Advertising
Enterprise Networking
Online Entertainment
Video, Image & Audio
Broadcast
Content Delivery Platforms
Mobile Infrastructure
Manufacturing Equipment & EDA
Top Sub-Sectors - Active MNCs in Israel – 2020The four top technology verticals in MNCs in Israel are: Machine Vision, IoT,Artificial Intelligence and Cyber Security, similar to 2019 figures.
Source: IVC Data and Insights
Data for 2020 is not final and is subject to change in the coming months as more information becomes available
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MNCs by Sector: Established 2010-2020
1 3 1 14 2 1 2
87
6 5
7 109
45
3
5
10
3 4
710
2
3
5
5
9
7
5
12
14
14
21
7
9
15
3
1
2
3
7
3
3
3
1
3
3
2
1
1 2
3 3
1
2
2
1
5
1
23 2
3
1
1
2
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Cleantech Communications InternetIT & Enterprise Software Life Sciences Miscellaneous TechnologiesSemiconductors
Data for 2020 is not final and is subject to change in the coming months as more information becomes available
30%
30%
20%
20%
2020
Communications
IT & Enterprise Software
Life Sciences
SemiconductorsSource: IVC Data and Insights
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Notable MNCs - Established & Ceased in recent years81 Multinational Corporations opened new R&D activity in Israel between the years
2017 and 2020; 49 MNCs ceased to operate in Israel in the same period.
New MNCs Ceased MNCs
(an Intel company - 2017) 2018
(a Ribbon Communications company - 2020) 2020
(A Midea company - 2017) 2017
(a Contentsquare company - 2019) 2017
(a Nuvei company – 2019) 2018
(a Powerfleet company - 2019) 2017
(a NortonLifeLock company - 2017) 2019
(Attunity Ltd. – a Qlik company - 2019) 2017
(a Canon company - 2018) 2018
(a Perforce company - 2018)
(a ChemChina company - 2019) Source: IVC Data and Insights
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Number of Employees in Active MNCs in Israel – 2020• Most MNCs in Israel employ between 10 and 50 employees and serve as R&D centers for the parent company
abroad.
• The largest number of employees is in a manufacturing facility (Intel Fab in Kiryat-Gat) and not an R&D center.
23
163
62 5942
2110 1
Less than 10 Between 10 and 50 Between 50 and 100 Between 100 and 200 Between 200 and 400 Between 400 and 1000 Between 1000 and5000
5000 or More
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Number of Employees in Active MNCs in Israel – 2020Top 15 companies with the highest number of employees:
12,000 1,400
3,000 1,200
2,000 1,150
1,600 1,000
1,650 1,000
1,550
1,500
EmployeesEmployees
Source: IVC Data and Insights
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Number of Active MNCs in Israel by Location – 2020
• Of the 381 active MNCs operating in Israel in 2020, more than 41% have branches located in central Israel: TelAviv-Yafo, Herzliya and Petah Tikva.
• However, in terms of the number of employees, KiryatGat, with its Intel and HP manufacture facilities is much more significant.
# of Active MNCsMNC Location
115Tel Aviv
43Herzliya
33Petach Tikva
27Haifa
18Raanana
16Ramat Gan
16Netanya
15Caesarea
14Jerusalem
13Kfar Saba
12Rosh Haayin
12Rehovot
9Hod Hasharon
7Yoqneam
7Lod
109Other Source: IVC Data and Insights
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Number of MNCs by Country of Parent CompanyThe majority of MNCs in Israel are U.S. based corporations, accounting for 60% of the 381 companies.
227
18 1812 11 9 9 8 6 4 4 4 4 3 3 3 3 1 1 1 1 1 1 1 1 1
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The presence of US tech companies was trending historically around 50% of newly established MNCs per year. While there was a noticeable German presence in 2016 and Chinese during 2017, currently, there is no other country with any significant presence other than US, yet.
Newly Established MNCs by Country of Parent Company
13
1 1 2
2
23
113
131
2
42
32
1
11
2
11
1
2
2
1
1
1
3
1
1
1
27
24
22
8
16
18
8
3
1
6
2
4
2014 2015 2016 2017 2018 2019 2020
Canada China France Germany India Japan Spain The Netherlands United Kingdom United States Other Countries
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Foreign Corporate Investments* in Israeli High-Tech 2014–2020
*Each funding deal contains one or more investments according to the number of investors that took part in this transaction.**All corporate investments include Israeli & foreign corporate investments.***Data for 2020 is not final and is subject to change in the coming months as more information becomes available.
331 421 466 668 715 1098 1079484 557
863 749
13281148
900
1066
1200
16341733
2930
2801
4219
89
128 154191
239237
248
138
191 185223
295
234
251
442
531563
645
811
691726
2014 2015 2016 2017 2018 2019 2020
Foreign CVC Investments $m Foreign Corporates Investments $m Corporate Investments $m
# of Foreign CVC Investments # of Foreign Corporates Investments # of Corporate Investments
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MNCs M&A Activity in Israel: 2014–2020Most global companies acquiring Israeli startups are from the US, with a steady number of more than 50 exit deals each year
3 3 2 2 3 4 31 2 4 4 2 4122 1 1
1 1 12
22
11 7
142
11
7
1
4
3 3
1
1
2 11 2 1
1
1
1
1
2
2 1 2
1
1
12 1
31
2
1
122
2
27 9 5
3
45
47
56 58
58
56
70
45
5
2 2
7
1
3
2
2014 2015 2016 2017 2018 2019 2020
Canada China Denmark Finland France Germany Hong KongIndia Isle of Man Japan Luxembourg Singapore Sweden SwitzerlandTaiwan The Netherlands United Kingdom United States Other Countries
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Number of Israeli HT Companies with Overseas Activity137 active Israeli high-tech companies in growth stages (with over 300 employees) have opened several
branches overseas, most of them in North America and Europe.
* Overseas company activity derives from the geographic spread of a company’s branches
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2
35
13
46
58
1511
30
18
42
3
47
18
Africa Asia Central & South America Europe Middle East North America Oceania
Active Private Active Public
Active Israeli Tech Companies with Overseas Activity
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* Overseas company activity derives from the geographic spread of a company’s branches
104
59
41 4035 34 33
29 2724
1916 15 14 14 12 11 10 9 8 7
89
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