ByJERUSALEM POST STAFF

JULY 14, 2026 13:28

Updated: JULY 14, 2026 16:20

A comprehensive development strategy designed to establish the Galilee as a leading hub for innovation, employment and community expansion was unveiled last week during a gathering of business executives and American Jewish leaders in New York.

The event, organized by Erel Margalit at Margalit Startup City in SoHo, centered on constructing a resilient economy in northern Israel capable of drawing firms, founders, capital and young households after nearly three years of conflict and upheaval.

The approach, directed by Margalit Startup City Galil, integrates technology, research, academia, advanced agriculture, local enterprise growth, education and culture.

"The day after begins now," said Margalit, founder and executive chairman of Jerusalem Venture Partners and Margalit Startup City.

"If we merely return the Galilee to its pre-war state, we have not addressed the core issue. We must generate fresh growth drivers, quality positions and prospects that will motivate residents to establish their futures in the area."

From conflict disruption to area expansion

The project originated prior to the war, when Margalit advanced the formation of an innovation-driven economy linking research bodies, universities and industry throughout northern Israel.

More than ten years ago, he initiated efforts for a technology incubator in Kiryat Shmona, emphasizing food technology, advanced agriculture and climate solutions.

The war subjected this framework to intense strain. Northern communities were displaced, enterprises shut down, startups shifted operations elsewhere and entrepreneurs, researchers and students scattered across the country.

Margalit Startup City Galil then collaborated with the Israel Innovation Authority, MIGAL Galilee Research Institute, Tel-Hai University and JNF-USA to sustain the region's innovation network.

Relocated firms obtained guidance, operational aid, grant application support and connections to strategic allies and global markets, according to the organizers.

Education, leadership and community initiatives also persisted during the conflict to preserve ties among residents, businesses and regional institutions.

According to data shared at the New York meeting, 32 startups have returned to the Galilee. More than 100 startups had been active in the region before the war.

Startups obtain grants and generate positions

Attendees learned that the Galilee innovation center has assessed more than 150 startups from the Galilee and Golan Heights in recent years.

Firms assisted by the center have produced over 50 positions and secured roughly $3 million in grants from the Israel Innovation Authority. The program also links entrepreneurs with mentors, investors and sector specialists.

Dr. Noam Yosef, CEO of Gaia, the Galilee Innovation Center established by Margalit Startup City, JVP and MIGAL with backing from the Israel Innovation Authority, noted the aim was to build companies anchored in the region.

"Over the past several years, together with the Israel Innovation Authority and partners from industry, academia and the investment community, we have constructed an infrastructure that allows entrepreneurs and technology companies to expand from within the region," Yosef said.

"Even during the war, we continued aiding companies, securing resources, linking founders with investors and strategic partners, and opening pathways to new markets."

Yosef said the center aims to cultivate globally competitive firms in food-tech, advanced agriculture and climate technology.

Startups active in the ecosystem include YoEgg, WonderVeggies, DYGO and Greeneye Technology.

The New York gathering featured Ilan Kaufthal of the Russell Berrie Foundation, along with representatives from JNF-USA and UJA-Federation of New York, groups that have backed development projects in the Galilee.

Margalit also invited leaders from American technology, cybersecurity, software and industrial companies. Organizers expressed hope that these executives would supply professional insight, international networks and investment prospects.

"These leaders bring decades of experience building companies, developing breakthrough technologies, creating international partnerships and scaling organizations," Margalit said.

"Our goal is to direct that experience toward building the next generation of growth in the Galilee."

Local enterprises, education and culture

The development plan also encompasses small and medium-sized businesses, including manufacturers, farmers, restaurants, retailers and family-owned operations.

Participants discussed expanding Galilocals, a program created to bolster local businesses throughout northern Israel and connect them with customers and fresh markets.

Community programs form another element of the strategy. More than 55,000 children and teenagers have joined educational, leadership and volunteer programs run by the nonprofit Bakehila across 27 communities and 75 schools, according to figures presented at the meeting.

Galiladies, another regional initiative, works to advance women's leadership and connect women with entrepreneurship, business and civic efforts.

Jacqui Schneider, vice chair of Women for Israel at JNF-USA, said the projects provided reasons for optimism regarding the region's future.

"We are proud to support the extensive work being led by the center for the benefit of the entire region," Schneider said. "The initiatives already underway and those now taking shape give us real optimism about the future of the Galilee."

The meeting also highlighted plans for StartArt, a performing arts and cultural center intended to serve Galilee residents.

Or Nadav Argov, director of strategic partnerships at Gaia and Margalit Startup City Galil, said cultural institutions would play a key role in encouraging younger residents to stay in the region.

"We believe real regional growth happens when, alongside the companies being built here, local residents are given opportunities to develop skills, build networks and become active partners in the region's economic, social and cultural future," Argov said.

"Creating a regional performing arts and cultural center is the next step in that vision. It will be a significant addition for Galilee residents and especially for the younger generation choosing to build their future there."

Schneider said attracting families and businesses would require investment in both technology and community infrastructure.

"Our mission is to strengthen and develop northern Israel by creating communities that attract young families, businesses and jobs," she said. "Investing in people and communities is just as important as investing in technology."