Israel sharply cut investment in R&D while many countries in the world increased investment

The researchers are getting older, the scientists are fleeing abroad thanks to the better infrastructure, the government's share of the R&D budget (especially the chief scientist) * The government's budget for R&D has actually decreased by half of its rate in the XNUMXs * This is according to a report submitted yesterday (Sunday) by the Council National Research and Development Agency to Prime Minister Ehud Olmert who promised to rectify the situation

In the last decade, there has been a significant decrease in state support for academic education and R&D. This is stated in a report submitted yesterday to Prime Minister Ehud Olmert by the chairman of the National Council for Research and Development Prof. Oded Abramsky.

The report also shows that the government's share of funding for national R&D expenditure gradually decreased from about 30% in the mid-90s to 14% in 2006. In recent years, the decrease is also expressed in absolute terms: in 2001, government funding for R&D amounted to , including the budget of the chief scientist at the Ministry of Science and Technology by NIS 4.6 billion, and it decreased by NIS 4.0 billion in 2006.

The report shows that the cuts were not only on the financial level but were also reflected in the political attitude to issues related to these issues. Although it has been proven that investing in education and scientific research is important for both Israel's economic and security resilience, short-term considerations have caused much erosion in these issues. In recent years, we have witnessed increasing cuts in higher education budgets, extensive cuts in government research institutions, and reduced investment in the infrastructure needed to promote R&D in Israel. These difficult processes occur precisely when in other countries we witness increased efforts for investments in R&D and the development of technological and scientific innovation. The cumulative result is that a double threat has been created for Israel: a threat (already partially realized) in young scientists moving abroad, and a potential threat to the Israeli high-tech industry from advanced industries in other countries. In our opinion, the continuation of these processes means a certain erosion of Israel's competitiveness, both in the economic and the scientific dimension.

Some of the indices used to evaluate the scientific and technological strength of countries place Israel in a very high place among the developed countries: for example, in the ratio between the national expenditure on R&D and GDP, Israel is first (4.5%), and also in the ratio between the number of researchers in the business sector and the total number of employees stood at 1.2%. In 25, Israel reached 64% in the proportion of people aged 2003-45 with a post-secondary education or higher, first place in the world along with Canada.

And if so, the retreat is already beginning to be felt in 1984, Israel took first place in the world in the proportion of researchers in relation to the population. The assessment today is that we may have dropped to second or third place; The population of engineers and scientists is aging and there is a gap between the expected demand for engineers and scientists, resulting from the growth of the economy and the retirement of existing personnel, and the expected supply of new graduates.

Most of the R&D resources in the business sector in Israel are concentrated in the software, electronics and communication industries (high-tech industries) and in start-ups, most of which belong to high-tech. Nearly 28,000 academics who are engaged in research and development and make up 92% of all researchers in the business sector, are concentrated in branches whose weight in terms of employment is 28%, while only 8% of the researchers - about 2400 - are employed in the other branches of industry that employ 72% of the workers in the sector, and export 52% of all exports of the sector.

This centralization of business R&D indicates, on the one hand, a high level of risk for the Israeli economy ("all eggs in one basket"), and on the other hand, an untapped potential for the development of the economy through investment in R&D in other industrial branches, when it is known that investment in R&D Yields a particularly high yield at the level of the national economy.

Olmert's response: "I am happy that the report is being submitted to me after many years of no report being submitted on research and development in Israel." It is important for the government to monitor our developments and investments over the years, so that they are in line with the national priorities. We are in a good place relative to the other OECD countries regarding investment in research and development, but this does not satisfy me. Investing in research and development is one of the most important ways to advance the country and we need to increase investment in this area. Only in this way will we contribute to the economy and the growth of the economy."