Tel Aviv ranked 45th overall in a new Innovation in Business index published by business-to-business financial services company FINOM on Thursday.
San Francisco was chosen as the best city for business innovation, with Beijing and New York finishing as runner-up and third, respectively.
Amsterdam-based FINOM's study ranked 100 cities using several categories such as research and development, startup activity, funding availability, AI innovation and biotechnology innovation.
Israel's "city that never sleeps" received its best ranking in the category of AI and Machine-Learning Innovation with a respectable 8th place, ranking above cities such as Los Angeles, Toronto and Seoul.
Tel Aviv also received a strong 12th place ranking in the category of Information Technology (IT) and Software Development. When ranked based on startup activity, Tel Aviv achieved a 19th place ranking.