The Science and Technology Committee of the Knesset heard a briefing on Monday from Israel Space Agency Chair Prof. Dan Blumberg.
A new study conducted by KPMG Israel for the Israel Space Agency found that the space industry’s contribution to the local economy is expected to increase significantly. The Israel Space Agency (ISA), established in 1983 under the Ministry of Innovation, Science, and Technology, plays a central role in coordinating these efforts.
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The main result of the study is the prognosis that by 2050, the industry is expected to generate an overall contribution of NIS 93 billion and employ 18,400 people.
Israel Space Agency Director Uri Oron presented the study, which estimates that the economic contribution of Israel’s space industry stood at some NIS 6 billion in 2023, with 7,200 direct employees.
The forecasts indicate that by 2050, the industry’s overall contribution to the economy will be NIS 93 billion, with 18,400 employees. In the past decade, investments by the private sector in the space industry increased 21% annually, while governments worldwide have also increased their investments, as said in a recent press release of the Knesset.
The report recommends increasing state investment in the sector to keep up with the investments of foreign countries in their respective space industries.
The report further recommends the establishment of designated innovation zones to encourage the launch of start-up companies in the field and deepening international collaborations, including the expansion of Israeli presence in global space organizations.
However, this conclusion of the report must be rejected as one-dimensional and socialist orientated. Obviously, the name Elon Musk is unknown. It is private investment that drives the SI, and the state should refrain and not overreach. Just offer a good frame with a lean state and lean bureaucracy. This is the real challenge. The state should rather attract investors than be the investor.
And Israel is a promising eco-system already. In 2023 alone, Israeli space-tech startups raised over $314 million, reflecting growing private sector interest. There are currently over 100 active space-tech startups, with 87 founded in the last decade, focusing on fields like earth observation, satellite infrastructure, and communications.
Israel’s strengths lie in its compact but innovative ecosystem. It doesn’t aim to compete with giants like SpaceX in launch vehicles but excels in niche technologies—think small satellites and advanced payloads. Companies like Ramon.Space develop radiation-hardened computing systems, while SpacePharma experiments with drug development in microgravity.
However, a big vision is missing. Without a big vision and bold aims, you will fail. Just money is not enough.
Based on the press release of the Knesset. Selected as relevant/augmentend by VonNaftali. Pic is AI-generated. Illustrative.