Israel Ranks 15th Globally in Innovation Despite War, Leads in Key Metrics

Israel has solidified its position as a global innovation powerhouse, achieving the 15th spot worldwide out of 139 economies in the 2026 Global Innovation Index published by the UN's World Intellectual Property Organization (WIPO). The report highlights Israel's leading performance in crucial innovation metrics, ranking first globally in national spending on research and development (R&D) as a percentage of GDP, business sector R&D, and venture capital deal volume relative to its economy size. Additionally, Israel leads the world in R&D collaboration between universities and industry.

In 2024, Israel's investment in R&D reached 6.8% of its GDP, the highest globally. This achievement is particularly significant for a small nation facing substantial security expenses, prolonged reserve duty call-ups, and workforce disruptions due to ongoing conflict. The country also excels in innovation outputs, ranking sixth in knowledge and technology outputs and ninth in business sophistication.

Further underscoring its innovative strength, Israel ranks first in unicorn company valuations relative to GDP and in the export of information and communication technology services as a proportion of trade volume. The Israeli tech sector's export reached approximately $85 billion in 2025, constituting about 58% of all Israeli exports, according to the Israel Innovation Authority. Venture capital fundraising increased by roughly 30% year-over-year, with exit valuations reaching about $84 billion.

The WIPO data gains added significance given the challenging security environment. Despite the economic toll and human resource impacts of the war, Israel's innovation ecosystem continues to thrive. The International Monetary Fund noted that while Israel's GDP is below its pre-October 2023 trajectory due to high defense spending and labor shortages, the economy has demonstrated resilience. Israel's continued global leadership in R&D, venture capital, and the integration of science, technology, and industry, even during one of its most complex security periods, reflects the deep technological and scientific infrastructure built over years.