Will the ongoing political unrest in Israel leave a lasting impact on its famed tech industry?

Reflecting on the impact of the current domestic turmoil in his country, the former Director General of Israel’s Nation Cyber Directorate, Yigal Unna warned that “Innovation and democracy are interconnected in several ways.” He also pointed out that “democratic society” encourages the “free exchange” of ideas, and that it is through such an exchange that new and innovative ideas are developed.

A move by the current Prime Minister Benjamin Netanyahu to overhaul the country's judicial system, which would curb the influence of the country's Supreme Court, had resulted in violent protests across the country. While the government has since decided to delay the implementation of the proposed reforms, it is likely that the protests have had a lasting impact on the tiny nation, as evidenced by the words from Unna, a former senior official.

Unna was appointed by Israel’s Prime Minister Netanyahu as the Director General of the Israel National Cyber Directorate (INCD) in 2018. In this role, Unna reported directly to Prime Minister Netanyahu and led a team of 350 responsible for all aspects of cyber security, including formulating policy and building technological power for operational defence of critical infrastructure.


Unna shared his views on the sidelines of the Innotech 2023 conference in Tel Aviv, Israel. The conference is pegged as the leading international event for cyber security and innovation in Tel Aviv, Israel. Companies working on artificial intelligence, deep-tech, fintech, autonomous systems, big data, infrastructure, hardware, IoT, and cloud security were showcased at the event.

Unna added that “democratic societies provide a conducive environment for innovation, while innovation can in turn contribute to the development and strengthening of democratic institutions. Technology and innovation cannot thrive or even exist in a non-democratic atmosphere…it must be in openness…in exchanging free ideas in order to thrive."

Technology plays a critical role in the overall economic growth story of Israel.
Over the years, Israel has moulded its reputation as a start-up nation. In 2021, for the first time, Israel’s high-tech sector accounted for over half of the country’s total exports with 54%. Israel also ranks first among the 38 member countries of the OECD for the percentage of GDP spent on research and development as high as 5.44%.

In 2021 the Israeli Cyber Security industry raised more than USD8 billion, and has become a significant contributor to the Israeli economy.

“Innovation requires a certain degree of freedom and openness, which are characteristic features of democratic societies,” Unna added. He further added that a democratic society encourages the free exchange of ideas, and it is often through this exchange that new and innovative ideas are developed.

Pointing out that it’s the first time in the history of Israel in the current political landscape “the high tech sector has come out of the streets.”

Shalev Hulio, former CEO of the NSO Group and the founder of Dream Security, a company focusing on cybersecurity for critical infrastructures - gas, oil and water installations - protecting organisations from ransomware and terror attacks said that the Israeli people are united (to find a solution to the problem) and care about democracy. Hulio told ET on the sidelines of the event that the high tech sector is the core of the Israeli economy and the voice of startup matters in the country.

Unna meanwhile also added that in democratic societies, individuals have the freedom to pursue their ideas and innovations, which can lead to new products, services, and technologies that benefit society as a whole. “Democracy also provides a system for protecting intellectual property rights, which encourages individuals and companies to invest in innovative ideas and bring them to market,” he pointed out.

Unna also added that democratic institutions often play a critical role in fostering innovation by investing in research and development, promoting education and entrepreneurship, and providing support for start-ups and small businesses. “In this way, democracy can serve as a catalyst for innovation by creating an environment that encourages and supports the development of new ideas and technologies,” he added.

Pointing towards the political scenario, Unna pointed out that innovation can also contribute to democracy by enabling greater participation and engagement in the political process. He also added that “the new technologies such as social media and mobile applications have revolutionised political campaigns, making it easier for individuals to participate in political discourse and express their views.”