Silicon Wadi (Hebrew: סִילִיקוֹן וָאדִי, lit. 'Silicon Valley') is a region in Israel that serves as one of the global centres for advanced technology. It spans the Israeli coastal plain, and is cited as among the reasons why the country has become known as the world's "start-up nation" (see science and technology in Israel). The highest concentrations of high-tech industry in the region can be found around Tel Aviv, including small clusters around the cities of Raʽanana, Petah Tikva, Herzliya, Netanya, Rehovot, and Ness Ziona. Additional clusters of high-tech industry can be found in Haifa and Caesarea. More recent high-tech establishments have been raised in cities such as Jerusalem and Beersheba, in towns such as Yokneam Illit, and in Airport City. Israel has the third highest number of startups by region, the highest rate of startups per capita in the world, with one in three cybersecurity unicorns in the world being an Israeli company.
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👉 Silicon Wadi in the context of Economy of Israel
The economy of Israel is a highly developed free-market economy. The prosperity of Israel's advanced economy allows the country to have a sophisticated welfare state, a powerful modern military said to possess a nuclear-weapons capability with a full nuclear triad, modern infrastructure equivalent to developed countries, and a high-technology sector competitively on par with Silicon Valley. It has the second-largest number of startup companies in the world after the United States, and the third-largest number of NASDAQ-listed companies after the U.S. and China. American companies, such as Intel, Microsoft, and Apple, built their first overseas research and development facilities in Israel. More than 400 high-tech multi-national corporations, such as IBM, Google, Hewlett-Packard, Cisco Systems, Facebook and Motorola have opened R&D centers throughout the country. As of 2025, the IMF estimated Israel has the 25th largest economy in the world by nominal GDP, and one of the biggest economies in the Middle East.[1]
The country's major economic sectors are high-technology and industrial manufacturing. The Israeli diamond industry is one of the world's centers for diamond cutting and polishing, amounting to 21% of all exports in 2017. As the country is relatively poor in natural resources, it consequently depends on imports of petroleum, raw materials, wheat, motor vehicles, uncut diamonds and production inputs. Nonetheless, the country's nearly total reliance on energy imports may change in the future as recent discoveries of natural gas reserves off its coast and the Israeli solar energy industry have taken a leading role in Israel's energy sector.
Silicon Wadi in the context of Tel Aviv
Tel Aviv, officially Tel Aviv-Yafo, and also known as Tel Aviv-Jaffa, is the most populous city in the Gush Dan metropolitan area of Israel. Located on the Israeli Mediterranean coastline and with a population of 495,230, it is the economic and technological center of the country and a global high-tech hub. If East Jerusalem is considered part of Israel, Tel Aviv is the country's second-most-populous city, after Jerusalem; if not, Tel Aviv is the most populous city, ahead of West Jerusalem.
Tel Aviv is governed by the Tel Aviv-Yafo Municipality, headed by Mayor Ron Huldai, and is home to most of Israel's foreign embassies. It is a beta+ world city and is ranked 53rd in the 2022 Global Financial Centres Index. Tel Aviv has the third- or fourth-largest economy and the largest economy per capita in the Middle East. Tel Aviv is ranked the 4th top global startup ecosystem hub. The city currently has the highest cost of living in the world. Tel Aviv receives over 2.5 million international visitors annually. Tel Aviv is home to Tel Aviv University, the largest university in the country with more than 30,000 students.
Silicon Wadi in the context of Gush Dan
Gush Dan (Hebrew: גּוּשׁ דָּן, lit. 'Dan bloc') or Tel Aviv metropolitan area is a major conurbation along Israel's Mediterranean coast. The term is commonly used by government bodies and the public, though its exact boundaries vary. It ranges from combining Tel Aviv with cities that form an urban continuum with it, to the entire areas from both the Tel Aviv District and the Central District, or sometimes the whole Metropolitan Area of Tel Aviv, which includes a small part of the Southern District as well. Gush Dan is the largest conurbation and metropolitan area in Israel and the center of Israel's financial and High technology sector. In 2021 the metropolitan area has an estimated population of 4,156,900 residents, 89% of whom were Israeli Jews.