How 434 multinational R&D centers in Israel are shaping global tech
“We remain optimistic about the 2025 acquisition climate as public markets recover, setting the stage for global financial activities, particularly for mid-sized companies reliant on borrowing,” says Yariv Becher, VP Business Development & Partnerships, Startup Nation Central.
Multinational corporations (MNCs) play an essential role in shaping Israel’s high-tech landscape, serving as both investors and active participants in the country’s thriving innovation ecosystem. Beyond funding, they bring knowledge, operational expertise, and global market access, enabling Israeli startups to scale, commercialize, and integrate into international markets. The presence of MNCs also strengthens Israel’s economy, contributing to employment, exports, and technological leadership.
MNCs in Israel as an Economic Engine
According to Startup Nation Central's recently released 2024 annual report on the tech ecosystem based on data and insights from its ecosystem business-engagement platform, Finder, Israel currently hosts 434 multinational R&D centers, employing one-third of the country’s tech workforce and accounting for 40% of total R&D expenditures. These corporations drive 60% of Israel’s high-tech exports while maintaining a 20% higher productivity rate than local tech companies. Their presence is a key reason why Israel remains one of the world’s top innovation hubs.
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Yariv Becher Yariv Becher, VP Business Development & Partnerships, Startup Nation Central during the MNC summit
(Photo: Eliran Avital)
At Startup Nation Central’s MNC Summit last year, GM Meta Israel's Adi Soffer Teeni spoke on the value Israel holds for global corporations: "We have 430 multinationals in Israel today. It’s crazy. I don’t think there’s any other country in the world that has so many sites and innovation centers of multinationals in a certain country. Two things stand out: first, how much the Israeli DNA is present even within these multinationals. When you join a multinational, you usually become part of its corporate culture. If you're at Google, you're a Googler; if you're at Facebook, you're a Facebooker. But here in Israel, the culture remains uniquely Israeli. The second thing is the sheer breadth of expertise. Israel isn’t just home to great engineers, but to a particular mindset that these companies want to tap into."
The impact of MNCs was especially pronounced in 2024, when they drove $10.7 billion in mergers and acquisitions (M&A) activity, marking a 65% increase from 2023. This growth is particularly striking given the geopolitical and economic uncertainties of the past year. Some of the most significant deals included Salesforce’s $2.35 billion acquisition of Israeli startups, alongside strategic moves by Nvidia and SAP, reaffirming Israel’s appeal as a global innovation hub.
Private funding rounds also saw consistent participation from MNCs, which accounted for 10.3% of total investment rounds in 2024. While slightly lower than the previous year, this figure remains in line with historical trends, underscoring the long-term commitment of global corporations to Israel’s tech ecosystem.
"With the growth in M&A activity of MNCs in Israel in 2024, the regional geopolitical and security instability notwithstanding, we expect to see a continuation of this trend in 2025," says Yariv Becher, Startup Nation Central ‘s VP Business Development & Partnerships. "Regional developments, alongside global changes in the last quarter of 2024, build confidence in expanded MNC activity in the coming year. Additionally, we remain optimistic about the 2025 acquisition climate as public markets recover, setting the stage for global financial activities, particularly for mid-sized companies reliant on borrowing."
The Strategic Role of MNCs in Israel’s Innovation Ecosystem
Despite these challenges, MNCs are crucial enablers of Israeli innovation. Their presence fosters cross-border collaborations, provides startups with much-needed capital, and creates pathways for Israeli companies to integrate into global supply chains.
A standout example is Israel’s cybersecurity sector, where MNC engagement is particularly strong. Seven of the world’s top ten cybersecurity companies maintain R&D centers in Israel, leveraging the country’s deep expertise in cyber defense. Israel’s cybersecurity workforce exceeds 23,500 professionals across 300+ private firms, making it one of the world’s leading hubs for cyber innovation.
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Meta’s Adi Soffer Teeni in conversation with SNC’s Avi Hasson during the MNC summit
(Photo: Eliran Avital)
The growing trend of corporate-academic collaboration is another critical factor. Israel is home to six dedicated cybersecurity research centers, where universities work hand in hand with corporations to develop new solutions. This ecosystem is a model for how MNCs can tap into local expertise to solve global challenges.
"NVIDIA itself employs over 4,000 employees in Israel, in dozens of product, engineering and research groups, including a substantial AI research team, working closely with universities across the country to form the company’s 2nd largest R&D center outside of the US. To power AI training and development of future products, while also igniting the local ecosystem, NVIDIA built Israel-1 – the country’s most powerful supercomputer. We’ve also recently reached over 1,000 Israeli startups that take an active part in our global startup program, NVIDIA Inception, making Israel the No. 5 country in the program. Startups taking part enjoy technological and business support to help them drive global innovation. Those investments reflect confidence in Israel’s AI talent and its potential to innovate and develop cutting-edge technologies for the era of accelerated computing and AI," noted Arik Kol, Sr. Director and Head of NVIDIA Inception Startups Program at NVIDIA Israel at the latest Israel’s AI report published.
“The multinationals don’t just benefit from Israel’s talent; they also play a huge role in up-leveling it. Israeli startups, even on day one, don’t just sell to Israelis, they’re built for global markets. And multinationals bring in essential knowledge about how to scale globally and how to think about product-market fit, go-to-market strategies, and the internal processes needed to succeed at the next level. A huge percentage of employees who leave multinationals in Israel go on to senior roles in startups. They take everything they learned from how Meta or Google or Microsoft build and think about technology and apply it in their own ventures. That flow of talent, from multinationals to startups, and then sometimes back again, is one of the things that makes this ecosystem so strong," said Adi Soffer Teeni, GM Meta Israel
MNCs and the Surge in M&A Activity Trending for 2025
MNC-driven M&A has become a defining feature of Israel’s high-tech landscape. In 2024, MNCs accounted for 69% of total M&A transaction value, the highest share in recent years. The number of M&A deals involving multinational corporations surged by 93%, reaching 64 transactions—the highest in a decade. This sharp rise reflects renewed confidence in the Israeli tech ecosystem and highlights the strategic role of acquisitions in MNCs’ growth strategies.
This shift in perspective is also happening within MNCs. While acquisitions remain a key strategy, companies are now prioritizing long-term R&D investments, joint ventures, and strategic partnerships over pure buyouts. This reflects a more sustainable approach to integrating Israeli innovation into global operations.
Navigating the Changing Landscape
While MNC investment in Israel remains robust, challenges persist. One of the most pressing issues is balancing military and cyber recruitment. Israel’s elite tech talent is increasingly drawn to cybersecurity, AI, and data science roles, sometimes at the expense of traditional defense units. Policymakers are now considering strategies to ensure a steady talent pipeline for both national security and the private sector.
Another challenge is the increasingly complex global regulatory environment. As governments worldwide introduce stricter cybersecurity, AI, and data protection laws, MNCs operating in Israel must navigate a shifting compliance landscape. However, this also presents an opportunity—Israeli startups specializing in regulatory technology (RegTech) and risk management are well-positioned to help MNCs address these challenges.
Why MNCs Continue to Choose Israel
Despite these hurdles, Israel remains a magnet for multinational corporations. The country’s unique combination of agility, cutting-edge innovation, and a highly skilled workforce ensures that it continues to attract major global players. Companies like Nvidia, Intel, and Microsoft are doubling down on their investments, expanding R&D operations, and deepening their engagement with local startups.
Becher echoes this sentiment from the MNC perspective: "Multinational corporations aren’t just passive investors in Israel’s tech ecosystem—they are active participants shaping its future. Their impact is felt not just in capital investment, but in the knowledge, networks, and global reach they bring to Israeli innovation."
The Future of MNC Engagement in Israel
The relationship between multinational corporations and Israel is dynamic, evolving, and mutually beneficial. With MNCs driving over $10 billion in annual deals, employing a third of Israel’s tech workforce, and accounting for the majority of R&D spending, their influence on the Israeli economy is profound.
In 2025, the key question isn’t whether MNCs will continue investing in Israel, it’s how they will adapt to an increasingly competitive and complex tech landscape. Whether through M&A, deeper R&D collaborations, or strategic partnerships, multinational corporations will remain at the heart of Israel’s innovation ecosystem, shaping its future in the process.
