Europe’s response to Israel is no longer uniform. While governments and large corporates grow increasingly cautious, local entrepreneurs, investors, and partners still recognize the value of Israeli innovation. This widening gap poses strategic challenges for Israel’s high-tech sector at a time when the country can least afford to lose global trust.
Israel as a Brand: From “Do it like an Israeli” to Growing Hesitation
Before the war, being Israeli in Europe was a clear asset. Israeli entrepreneurs were seen as bold, fast-moving, and highly effective- so much so that one of our most popular workshops abroad was titled “Do it like an Israeli.”
European partners admired the entrepreneurial mindset: speed, agility, risk-taking. Israeli startups were high on the global scouting lists of corporates, and partnerships with European players were often the gateway to new markets.
The War and Its Business Consequences
Two years into a prolonged war, the ripple effects are felt across Europe’s innovation ecosystem.
On the surface, it’s logistical: canceled flights, higher travel costs, and disruptions that make continuous presence difficult.
Deeper down, the hesitation is more political and reputational. Governments may issue official statements of support, yet universities, corporates, and venture funds act more cautiously- often choosing to avoid Israeli involvement altogether.
The results are clear: fewer partnerships, delayed investments, and missed opportunities.
On the Ground: Growing Reluctance
This is not theoretical- it is lived reality:
● Multinationals meet with Israeli startups, only to return with a message from headquarters: “We’ve been instructed not to proceed with Israeli stakeholders.”
● International conferences sideline Israeli speakers, either due to protests or fears of backlash.
● Academic collaborations are canceled- sometimes with notice, sometimes abruptly. Something has shifted, and Israeli companies feel it.
Europe’s Two Layers: Top-Down vs. Bottom-Up
Today, two parallel Europes coexist:
● Europe from Above: governments, EU institutions, and corporate HQs- where political pressure and reputational concerns dominate.
● Europe from Below: local entrepreneurs, researchers, and investors—those who know the value Israelis bring and want to keep working with us, but are increasingly hesitant.
The gap between the two layers is widening, and the longer the war continues, the harder it will be to bridge.
Where Do We Go From Here?
It is easy in Israel to focus only on security. But ignoring the economic and business costs is dangerous. High-tech is Israel’s primary growth engine, and Europe—our second-largest market after the U.S.- is too important to lose.
To navigate this moment, we must act on three fronts:
1. Economic Diplomacy – government support must go beyond political statements and provide concrete backing for Israeli companies abroad.
2. Entrepreneurial Leadership – Israeli startups must continue to deliver exceptional value, proving resilience and professionalism even in a hostile environment.
3. Human Connections – grassroots ties in Europe remain vital. Personal trust with entrepreneurs, investors, and partners is our strongest asset.
Europe from above may grow colder, but Europe from below still seeks the spark that made Israel the “Startup Nation.”
The question is whether we can bridge the divide and preserve our position as Europe’s natural innovation partner. If not, the hesitation we see today may soon become permanent disengagement.
Inbal Rahav is the CEO of the Israel-Austria Chamber of Commerce.