Government: launching aid program to promote digitization - Level of technological intensity is low

The Agency for Small and Medium Businesses in the Ministry of Economy and Industry is launching an aid program to promote digitization and computer systems for businesses in the amount of NIS 18 million; Up to NIS 350,000 for a business that will make investments to advance computing, which will lead to an increase in productivity and improve competitiveness.
In order to increase the use of digital tools among businesses, the Small and Medium Business Agency is launching grants of up to NIS 350,000 per business, for the benefit of implementing computer systems and digital tools.
The use of digital tools and computer systems can help businesses in optimizing the operation of the business and facilitate the management of the processes, in a way that will lead to improved business results and thus to raising the level of productivity of businesses in Israel, which is low compared to the OECD countries.
A survey by the CBS to measure the level of digitization of businesses in Israel (survey of uses of ICT information and communication technologies and cyber protection in businesses) published in November 2021, showed that the level of digitization of businesses in Israel is low compared to European countries.
A study carried out by the Ministry of Economy in collaboration with the CBS revealed that the level of technological intensity of businesses in Israel is low compared to businesses in European countries, and in particular in the service sectors that are not high-tech, and in the traditional industries
For example, a study revealed that in an international comparison of the digital divide in the hospitality and food and commerce industries, Israel is below the European Union average in all types of technologies examined.
In order to help small and medium-sized businesses implement digital tools and computer systems, raise awareness and reduce the fear of the perceived risk compared to the required costs, the agency published a call for assistance to businesses.
The assistance provided is a participation of 35% of recognized expenses up to a support of NIS 350,000, in expenses that are borne by those business entities that undertake to implement innovative computing processes. The program supports businesses from the fields of trade and services, and traditional industry with an annual turnover of up to NIS 100 million.
The program operated in the years 2018-2019 for branches from the industry sector and in 2022 also for businesses from the trade and service sectors. In 2022, grants amounting to approximately NIS 20 million were given to 76 businesses.
Naomi Himein-Reish, deputy director of the agency: "From the research and the data we learn that the trade and service sectors in Israel (which are not in the high-tech sector) and the traditional industry in Israel use less digital tools compared to similar businesses in Europe. The implementation of digital tools can optimize business activity and lead to an increase in business productivity. The program will help raise awareness among businesses, and encourage them to implement computer systems with our participation in the risk they see before their eyes."