During many wars, the economy suffers. At the same time, wars present economic opportunities. Adopting the concept of the defense-tech economy in Haifa could lead to a significant strategic shift, which will strengthen Haifa's economy and restore its status as a regional economic center.
Recently, the defense industry company Rafael staked a significant presence in the Haifa Science and High-Tech Park, covering over 7,000 square meters, for over 500 new engineers. Israel Aerospace Industries will soon launch an R&D complex with over 100 new employees in the Haifa Matam Park. These companies join thousands of Elbit employees in Haifa, thus creating for the first time an arrowhead among the three major defense companies in one center.
These days, the Haifa Economic Corporation is leading a road show with startups and venture capital funds in the defense-tech industry to offer them integration into this unique ecosystem. A decade and a half ago, the idea of Beersheba becoming Israel's cyber capital seemed unattainable. Today, it is a reality that every Israeli cyber entrepreneur strives for.
Creating Israel's 'Defense City'
Haifa, as Israel's 'Defense City,' is an emerging reality with the potential for approximately 10,000 new jobs in defense tech alone, at the technological forefront of defense companies, which have a turnover of tens of billions of dollars each year.
Many of the employees will come from graduating students from the University of Haifa and the Technion, which are magnets for international defense and high-tech companies. Today, there are already 2,000 engineering graduates from the Technion each year, and we must develop and increase the number of engineers to meet market demands. Recently, we have also seen applications from new immigrants from the US and Europe interested in integrating into the Haifa ecosystem with positions in the defense-tech and high-tech fields.
The director of the recently established 'Defense City' faces the task of building a comprehensive system to enhance research infrastructure in collaboration with academic institutions, integrating Hi Center, our subsidiary focused on technological innovation, and strengthening data center assets in Haifa. Although these tasks are not typical for Haifa’s municipality and economic corporation, they present a significant opportunity that necessitates exploring new areas of activity. The tailwind that Haifa Mayor Yona Yahav provides the project is a significant boost in meeting our goals.
When the district is built correctly, then the entire metropolis grows. Turning Haifa into a 'Defense City' is positive news for the entire region. We strive to bring together the naval branch, which is located mainly in the Haifa metropolis, and other military branches in the north in a unique collaboration.
I have formerly worked in Jerusalem in senior positions at the Education and Economy ministries. The fact that government offices are concentrated in Jerusalem affects the nature of employment, and therefore it is important that government activity also be spread throughout the rest of the country. The government should join the market forces already operating in Haifa in the defense-tech sector and strengthen the region as the de facto capital of high-tech defense.
To achieve this, we must adjust planning and infrastructure; the authorities are responsible for these changes. To facilitate this, we have established a unique directorate that will transform the vision into reality. Alongside our activities, the government should also promote the opportunity. Haifa and the northern authorities are thirsty for such an opportunity.
The writer is chairman of the Haifa Economic Corporation and a member of the Haifa City Council.