OECD Science, Technology and Industry Working Papers

The OECD Directorate for Science, Technology and Innovation (STI) leads OECD research on the contribution of science, technology and industry to well-being and economic growth. STI Working Papers cover a broad range of topics including definition and measurement of science and technology indicators, global value chains, and research on policies to promote innovation. These technical or analytical working papers are prepared by staff or outside consultants to share early insights and elicit feedback.


Venture Capital Policies in Israel

Israel has a higher level of venture capital as a share of GDP than any OECD country. Most Israeli venture capital is channelled to early-stage companies, particularly start-ups in sectors based on information and communications technology (ICT) and biotechnology. The Israeli venture capital industry was built through government funding, particularly through the YOZMA group, which leveraged financing from foreign corporations and institutions. There is now a need for a change in tactics to maintain private venture funding for both portfolio and seed firms. While new incentives are being given to foreign investors, domestic venture investments could be encouraged through tax breaks, expanded opportunities for institutional investors, and reforms to the Israeli stock exchange. Israel needs to sustain growth in the venture sector while reducing dependence on a limited number of capital sources. This paper analyses trends in Israeli venture capital markets and makes policy ...


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