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The Israeli high-tech sector is showing signs of recovery post-war, bolstered by Nvidia's announcement of a new R&D center. The sector, which constitutes 17% of Israel's GDP, faced challenges due to military mobilization and a brain drain of 8,300 employees between October 2023 and July 2024.

Despite a stagnation in production in 2024, private funding rose to $15.6 billion in 2025, with a notable increase in defense innovation startups, nearly doubling to 312. Technologies related to defense are now highly sought after globally.