Data recently published by the Israel Innovation Authority showed that Tel Aviv has 2,383 high-tech companies at the expense of peripheral cities in the north and south, struggling to develop in this sector.
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The government has set a national objective of increasing the rate of people employed in high-tech roles to 15% by 2026.
At the same time, it is promoting the establishment of high-tech centers away from the country's bustling center – in the northern and southern periphery.
According to the report, Israel could benefit from investing in the periphery in various ways, chiefly solving the problem of manpower shortage in the high-tech industry and increasing workforce diversity in the sector.
This is the key to equal opportunities and the reduction of social gaps for the government, the report said. adding that the periphery has "untapped potential, and must become independent of the 'Tel Aviv State.'"
Beersheba, to so-called "capital of the Negev," has for example important anchor points, including university centers such as Ben-Gurion University and the Shamoon College of Engineering, the Soroka Medical Center, and the Hi-Tech Park.
However, still few start-ups have been set up in the desert city.
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A major national plan may be needed to encourage, develop, invest and lead to the establishment of high-tech companies outside the Tel Aviv bubble.
Particularly, significant tax incentives could encourage companies to leave the center of the country and invest in the periphery, The Jerusalem Post reported.
i24NEWS contributed to this report.
