Total R&D spending in Israel increased 7.2% in 2007 in constant prices to NIS 31.5 billion ($8.7 billion), or 4.7% of GDP. R&D spending by the business sector represented 79% of all R&D expenditures last year and rose 8.9%. Government R&D spending grew 4.2% and accounted for 5% of spending, while R&D expenditures by nonprofit institutions rose 4.8% to make up 4%. However, R&D spending by universities fell 0.4% to make up 12% of the total. Fifty-four percent of government R&D funding went to “General University Funds” and 29% went to industrial technology.

Source: Israel Central Bureau of Statistics