The Jerusalem branch of the Israel Manufacturers Association (IMA) has shown that the scope of local industry has increased in Jerusalem over the past few years.

Table 9 : Scope of Industry in Jerusalem 1995-1996

*Financial data (NIS millions and $US millions) at uniform prices according to yearly average prices of the report year.

The significance of Jerusalem industry to the national average is also rising in each of the following parameters:

Export-Oriented Industry

Based on the information collected by the IMA, it can be determined that an export-oriented economy has emerged in Jerusalem.

An analysis of the structure of industrial enterprises in Jerusalem in 1996, as presented in the following table, indicates the following trends:

The greatest number of factories are in Printing and Publishing followed by Textiles, Apparel, and Footware and Metals and Machinery.

The greatest number of employees are found in Printing and Publishing followed by Food, Beverages, and Tobacco and Chemicals and Pharmaceuticals.

The most profitable branches in terms of revenues are the high-tech branches: Chemicals and Pharmaceuticals, followed by Electronics. Revenues from Chemicals and Pharmaceuticals account for 27% of all industrial revenues in Jerusalem; Electronics accounts for 18%.

Electronics accounts for the highest amount of industrial exports in Jerusalem, at 44% of all industrial exports

Table 10: The Division of Industry in Jerusalem by Major Branches, 1996 (Percentages)

Investment has enabled many new factories to open in Jerusalem (particularly in the high-tech sector) and many more to receive licenses. The number of high tech companies in Jerusalem increased from 30 in 1990 to 105 in 1993 and 200 in 1997. Of these 200 companies, 69 involve programming, 49 are in medicine, and 76 are in electronics and in science and electronic development "greenhouses" (source: Survey of the Jerusalem Development Authority in cooperation with the Oxton Jerusalem Financial Risk Foundation). According to the Jerusalem Association of Industrialists, plans to open new factories and expand existing ones have been approved as follows:

- 1991: 23 programs, with investments totaling $US 88 million.

- 1992: 54 programs, with investments totaling $US 250 million.

- 1993: 44 programs, with investments totaling $US 60 million.

- 1994: 33 programs, with investments totaling $US 54 million.

- 1995: 43 programs, with investments totaling $US 96 million.

- 1996: 39 programs, with investments totaling $US 63.5 million.

The greatest number of industries whose programs were approved are involved in electrical engineering, electronics, and computer programming. It is estimated that these new industrial enterprises will create 1,500 new jobs.

Investments in industry based on licenses approved in the preceding year came to:

- in 1992: $US 101.5 million

- in 1993: $US 123.7 million

- in 1994: $US 76.7 million

- in 1995: $US 55.5 million

- in 1996: $US 75.2 million

The percentage of industrial investment in Jerusalem out of the national total came to:

- in 1991: 4.3%

- in 1992: 10.4%

- in 1993: 3.7%

- in 1994: 3.5%

- in 1995: 6.4%

- in 1996: 1.7%

The last year was the lowest of the decade. According to the Jerusalem Branch of the Union of Industrialists, this low rate can be attributed to a number of causes: A) the lack of a clear policy to encourage industry in Jerusalem; and b) the dearth of land for industrial development in the city.

Research and Development in Jerusalem Industry: Grants from the Chief Scientist for Research and Development in Jerusalem are increasing:

  Source: Union of Industrialists in Israel, Jerusalem Branch

Projects in the Programming and Technology Greenhouses in Jerusalem, 1997

Industrial Manpower

Jerusalem has a high percentage of professional and scientific manpower, among both the veteran population andnewcomers to the city. By developing knowledge-based and high-tech industries, this population will be absorbed adequately in the local workforce and, hopefully, be induced to remain in Jerusalem. Already, the demand for professionals in Jerusalem's high tech industries exceeds the supply. In order to increase the ranks of Jerusalem's professionals, especially those trained in technology, plans are underway to establish an academic college with an emphasis on technology.