NAnews – Nikk.Agency Israel News

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The attitude towards Israel in the public and political rhetoric of several European countries is becoming increasingly harsh. However, in the economy and technology, the opposite trend is observed. Israeli technology companies are not reducing their presence in Europe; on the contrary, they are expanding it, increasing the number of jobs and investments in research and development.

In practice, it is Israeli technologies that are becoming part of the future infrastructure of the European Union — in cybersecurity, artificial intelligence, and defense innovations.

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A recent report prepared by EIT Hub Israel, Planven VC, and KPMG records a steady growth of Israeli technological presence on the continent. Today, more than 1,600 Israeli companies operate in Europe. They provide employment for over 30,000 people, with an average annual growth of 4.8% over the past three years.

The gap between political statements and the real economy is becoming more noticeable.

Dina Pasca-Raz, partner and head of the technology sector at KPMG in Israel, notes that this is not a temporary trend. The Israeli technology ecosystem is deeply integrated into the European market. About 60% of Israeli companies operating in the EU are mature businesses with a history of 8 to 12 years, sustainable models, and local management teams.

These are not startups “on the move” and not a reaction to a crisis. This is a systemic presence.

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An additional confirmation of the long-term strategy is the management structure of the companies. Approximately 31% of Israeli firms have top managers permanently working in Europe. Among large companies, this figure reaches 71%. Even against the backdrop of political and social tensions, business demonstrates confidence in European prospects.

The report separately emphasizes the strategic alignment of interests.

Israel holds strong positions in the fields of artificial intelligence, cybersecurity, digital medicine, and environmental technologies. These areas are among the key priorities of the EU for 2024–2029 — security, sustainability, and digital infrastructure.

Europe’s desire to reduce technological dependence on the USA and China enhances the structural demand for Israeli solutions. In critically important sectors — from data protection to defense systems — Israeli technologies already occupy a significant place.

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The geography of presence is wide and continues to expand.

The largest centers of activity for Israeli companies are concentrated in Germany, Spain, France, the United Kingdom, Poland, and Ukraine. At the same time, the number of operational and research centers in Central and Eastern European countries, including Romania, Bulgaria, Lithuania, and the Czech Republic, is growing.

These regions are becoming new points of attraction for engineering teams, R&D centers, and technological partnerships.

Among the companies with the largest number of employees in Europe are SentinelOne, Wix, CyberArk, Check Point, and Playtika. Their presence shapes not only the labor market but also local innovation ecosystems connected with universities, research institutes, and industrial partners.

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Eden Dvir-Zano, Managing Director of EIT Hub Israel, emphasizes that Israeli technology has become a significant economic and innovative force in Europe. Companies are opening research centers, investing in local personnel, and participating in projects that the EU considers priorities for its security and sustainable development.

Against this backdrop, the social situation looks alarming.

According to the Ministry of Diaspora Affairs and Combating Antisemitism, a rise in antisemitic incidents of up to 400% has been recorded in several regions of Europe since the end of 2023. According to surveys, 96% of Jews in Europe have encountered manifestations of antisemitism in everyday life.

A paradox arises: economic openness to Israeli technologies coexists with political and social hostility. For entrepreneurs and investors, this creates a complex background but has not yet led to the curtailment of projects.

Dina Pasca-Raz notes that there is a natural synergy between Europe and Israel. Israel’s strengths in AI, cybersecurity, robotics, and defense technologies correspond to Europe’s real needs. After the end of the war, growth in new strategic partnerships and joint programs is expected.

Today, for Israeli companies, the question is no longer whether they have a place in Europe. The key question is whether Europe can avoid politicizing a sector that is becoming critically important for its technological and defense future.

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Investor Elle Titus Spruch of the pan-European venture fund Planven summarizes: Israeli startups and mature companies continue to deepen their long-term presence in Europe, creating opportunities for joint growth and sustainable development. This dynamic and its consequences continue to be recorded by NAnews — News of Israel | Nikk.Agency.

NAnews - Nikk.Agency Israel News
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