The rate of GDP growth in Israel has exceeded that of most OECD countries for more than a decade, and the employment rate has continued to rise steadily. Israel also has a vibrant high-tech sector and is the world’s second-most GERD-intensive country at 4.11% of GDP in 2014 (1). However productivity growth has been weak. An inefficient sheltered sector is dragging down overall economic performance. The country’s technology-driven growth has not been sufficiently inclusive, as is illustrated by data on income inequality (4). To maintain and increase Israel's global leadership in the face of intensifying competition, the government approved the ministerial proposal to establish the Israel Innovation Authority. This implies a strategic change and a broad mission. The government's innovation policy aims to encourage R&D activity in industries, mainly in the manufacturing sector, to link the innovation ecosystem to the public sector and to attract new employees from under‑represented groups of the population.