The sense of euphoria sweeping the nation in the war's aftermath is a national asset, but it could lead to dangerous complacency. Military victory will not automatically translate into economic success. The responsibility for ensuring that national resilience evolves into long-term prosperity cannot rest solely on entrepreneurs and private companies. It rests, first and foremost, with the government, which must now lead a strategic-economic front with the same determination that it managed the military campaign.
During the war, Israeli high-tech proved itself once again as the backbone of the economy. It didn't just survive under fire; it shouldered a significant portion of the economic burden, continued to funnel taxes into state coffers, supported the home front, and projected an image of stability and resilience to the world, even as many of its people were mobilized at the front.
Simultaneously, while Israel's global image and international support plummet to unprecedented lows, profound technological shifts are occurring. We are witnessing the dramatic breakthrough of AI into our lives, alongside advancements in quantum computing and semiconductor technology. This is the precise intersection of the world's current needs and Israel's needs.
Our history teaches us that the combination of bold private entrepreneurship and supportive government policy is the "magic formula" of the Israeli economy. This was true after the Yom Kippur War, when massive government investment in defense R&D created the knowledge and human capital that formed the bedrock of our high-tech industry.
It was true in the 1990s, when the government initiated the technological incubator program to absorb the welcome wave of immigration from the former Soviet Union—a move that helped position Israel as the "Start-Up Nation." It has been true during economic crises, when bodies like the Israel Innovation Authority provided a safety net, enabling companies to survive and continue developing even as the global market froze.
At each of these junctures, the state did not stand aside and wait for the market to "run its course." It intervened, initiated, invested, and took calculated risks, understanding that Israel's national-economic security was at stake. We now stand at a similar crossroads. To leverage this victory and secure high-tech's future as the primary driver of our economy, the Israeli government must adopt a clear, strategic plan of action. It is time for decisive measures on three central fronts:
Strategic investment in the national technological core:
Instead of expecting companies to resume deep R&D investment on their own, the state must initiate and lead. It must establish national funds for investment in Deep Tech, AI, quantum computing, and biotech. The state must finance the high-risk, breakthrough research that the private sector struggles to fund in times of uncertainty, ensuring Israel maintains its competitive edge for years to come. A national program to lead in these fields, especially AI, must be adopted and implemented.
A global diplomatic & marketing offensive:
The battle for the narrative of Israeli high-tech cannot be fought solely by the marketing managers and entrepreneurs of private companies. This is a national mission. The Ministry of Foreign Affairs, the Ministry of Economy, and commercial attachés worldwide must be mobilized for this campaign. They must proactively promote the narrative that Israel continues to lead in innovation and is winning on the technological front. They must open doors in new markets, neutralize BDS threats, and make it clear to investors and clients that investing in Israeli technology is an investment that yields a significant and proven ROI.
An emergency plan for human capital:
Our greatest asset is our talent. The state must invest aggressively in it. It is time to launch a national program to expand STEM education, create rapid training and reskilling tracks for talented reserve-duty veterans, and immediately remove the bureaucratic barriers that hinder the recruitment of international talent and the repatriation of Israeli "brains."
The entrepreneurs, engineers, and employees in the private and high-tech sectors have demonstrated boundless patriotism and dedication. They fought on two fronts—in uniform and in the office—and kept the flame of Israel's economic engine burning during its darkest hour. They have done their part. Now, the responsibility to launch from this point forward rests squarely on the government's shoulders.
This is not just another crossroads; it is a test of leadership and strategy. The return of the hostages and the victory in the war have given us rare momentum and the world's full attention, for better or worse. The bold decisions and long-term vision we adopt now will not only secure the next wave of growth, but also shape the very character of the State of Israel for decades to come.
If we are wise enough to leverage this historic moment, we will cement Israel's status not just as the Start-Up Nation, but as an indispensable global technology superpower. A nation the world looks to for the future of artificial intelligence, digital health, and sustainability. We can transform the remarkable resilience our citizens displayed under fire into a strategic asset—a global magnet that will attract the most significant investments and the brightest minds. In doing so, we will secure not only economic prosperity but also a firm foundation for our national security and foreign relations.
The actions taken today will determine if this moment is remembered as the most fantastic springboard in our history, launching us toward a future of strength, influence, and hope.
Doron Aaronsohn is the CMO of Sela, a leading global provider of Cloud and AI services for technology companies.