Revival in the Western Negev fosters innovation and entrepreneurship - opinion

The connection between central Israel, the “start-up nation,” and the periphery is vital for the success of turning the Western Negev into a technology and innovation hub. 

 The Negev Desert (photo credit: Wikimedia Commons)
The Negev Desert
(photo credit: Wikimedia Commons)

The government’s decision to approve the five-year plan submitted by Tekuma Authority, aimed at “rebuilding and developing the Western Negev and significantly increasing demographic growth,” was approved after several postponements and delays but is the right step in the right direction.

The plan allocates meaningful budgets to vital areas such as health, transportation, welfare, employment, and education.

However, budgets alone are not enough to achieve this goal. 

Bringing this vision to fruition requires a comprehensive approach that revitalizes the Western Negev as a prosperous and flourishing region. 

The ability to restore trust in residents following October 7 

Such a strategy would restore residents’ trust after the events of October 7 and attract young individuals and families eager to establish their homes, raise their kids, and contribute to the region’s growth.

 Israeli women and children from Kibbutz Nir after being rescued from Hamas terrorists by the Israel Border Police, October 7, 2023. (credit: MAARIV)
Israeli women and children from Kibbutz Nir after being rescued from Hamas terrorists by the Israel Border Police, October 7, 2023. (credit: MAARIV)

This vision should be grounded in fostering an entrepreneurial spirit and innovation. It was the dream of the late Ofir Libstein, mayor of the Shaar HaNegev Municipality in the Gaza envelope, who envisioned the area as Israel’s “Silicon Valley.”

Ofir’s initiatives, including the SouthUp incubator, have been instrumental in supporting over 60 start-ups, raising over $120 million in capital and creating new jobs for over 250 people, including developers and engineers.

To realize this vision, several crucial conditions must be met. First, we need to attract investors who understand that their capital is a form of impact investment that will not only return positive financial yields but also further the Zionist goal of uplifting the Western Negev and restoring the region. 

It should be noted that beyond capital, strategic value lies in the involvement of external investors in start-ups who can help promote the companies, create connections, participate in decision-making, and provide valuable resources and experience crucial to a start-up’s success.

The second condition is investment in infrastructure that adds value for entrepreneurs, making them prefer operating in the peripheral Western Negev over central Israel. 

This ecosystem must involve strengthening a combination of forces already operating in the Western Negev, including local authorities, academic institutions, accelerators, laboratories, available qualified personnel, and advanced public transportation that will shorten the distance from the center of Israel. The government should support this by fostering cooperation and mutual responsibility among all involved parties.

Israelis have witnessed the resilience and spirit of the Western Negev’s residents during and after the October 7 massacre. This dedication, beginning with the pioneers of the kibbutzim (the Halutzim) and settlements near the Gaza border, continues to thrive and serves as the foundation for building a vibrant entrepreneurial culture leading in technologies such as FoodTech, ClimateTech, Health/Life Science Tech, smart agriculture, and advanced Generative AI capabilities.

Investments in higher education are crucial, with Sapir College near Sderot playing a vital role. Supporting the college through grants and benefits for students can increase the number of people studying in the region, with hopes that they will choose to stay in the area post-graduation.

The connection between central Israel, the “start-up nation,” and the periphery is vital for the success of turning the Western Negev into a technology and innovation hub. 

The government should welcome and encourage initiatives emerging after October 7, such as the hi-tech complex in Sderot led by Place-IL, together with global technology giants such as Google, Nvidia, and Palo Alto, as well as leading Israeli hi-tech companies.

Such complexes will expand the Start-Up Nation beyond the Herzliya Pituah-to-Sderot Rothschild radius, creating employment opportunities and attracting quality personnel to the Western Negev.

It was the nation’s founder, David Ben-Gurion, who stated back in 1955, “Without settling the Negev, we will not reach state security and economic independence. For this, we will need our youth to use innovation and the latest science.”

These words are relevant more than ever today.

Gil Shwarsman serves as CEO of the SouthUp Incubator at the Negev Gate. 

Itai Horstock, with extensive experience in Israeli venture capital, leads the establishment and management of a new investment fund operating within the incubator, investing in and assisting start-ups and others operating in the Western Negev.