The Jerusalem Post

Revival in the Western Negev

Fostering innovation and entreprene­urship

- • By GIL SHWARSMAN and ITAI HORSTOCK 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 wi

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. 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.

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.

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