Israeli Tech Leader Warns of Critical Talent Shortage as Siemens, GE Exit Country

Pinchas (Pini) Cohen, chairman of the board at the Holon Institute of Technology (HIT) and chairman of the Noy Fund, addressed the urgent need for Israel to develop independent technological capabilities during the Calcalist and HIT Future of Industry conference held on Wednesday. Cohen highlighted the departure of major companies such as Siemens, Mitsubishi, and GE from Israel over the past three years, emphasizing that this trend underscores the necessity for Israel to build its own engineering and technological expertise.

Cohen criticized the traditional academic model as outdated, noting that in today’s fast-paced era, especially with AI accelerating knowledge growth, academia must redefine its role to remain relevant. He stressed that students now seek practical skills for problem-solving and value creation rather than just degrees. Cohen called for integrating academia with industry through joint research labs and real-world projects, citing partnerships with Israel Aerospace Industries, the Electric Company, and Rafael at HIT.

Addressing Israel’s critical shortage of professionals in engineering, technology, and medicine, Cohen warned this talent gap threatens the country’s growth. He advocated establishing a civil engineering faculty to address infrastructure needs and highlighted the fierce global competition for skilled workers. Cohen also referenced a government report on U.S. military aid, noting Israel’s technological contributions exceed the $3.8 billion aid package, particularly through intellectual property and defense developments.

He further underscored the need to improve STEM education from early childhood through high school, pointing to declining Israeli student performance in math and physics compared to global peers. Cohen called for embedding algorithmic thinking and scientific knowledge at younger ages and addressing the shortage of science teachers. He concluded that these challenges jeopardize Israel’s economic future and its status as a technological leader in the region.