Promoting and Developing Digital Transformation in Israel toward 2030

Hila Axelrad, Sergei Sumkin and Shachar Haver

Various studies have reported on the many advantages of digital progress in economic and social areas. Investing in information and communication technology (ICT) has a positive effect on economic growth, welfare and employee productivity in the market. A comparison between data from Israel and benchmark countries shows that Israel's public capital inventory of ICT is very low and that there is a large disparity in the total investment in ICT out the GDP compared to the benchmark countries. Israel does try to close this gap through the "Digital Israel" initiative, the Ministry of Communication, the ICT Authority and more, but in order to succeed and realize the potential of promoting digital transformation in Israel, an ordered work plan based on measurement and data is required.

In this paper, we examine the OECD's strategy for promoting digital transformation and suggest ways to implement it in Israel, by establishing priorities, setting goals and engaging in continuous measurement. The Aaron Institute's pyramid model, regressions for assessing the relationships between digital transformation indicators and per capita GDP, closing gaps with benchmark countries and the road maps of leading countries are among the suggested methods for developing a strategic plan to promote digital use in Israel toward 2030, and all with the aim of promoting economic growth and individual welfare and reducing poverty.


 The benchmark countries are Austria, Ireland, Denmark, the Netherlands, Finland and Sweden.