Israeli companies have helped to create greater than 20,000 jobs within the Golden State, and generate billions in financial progress, in response to a brand new research launched after Gov. Gavin Newsom blasted Israel as an “apartheid state.“
An impartial research launched Wednesday discovered that Israeli-founded corporations play a big function in California’s economic system.
The 2025 California–Israel Financial Affect Report, commissioned by america–Israel Enterprise Alliance, recognized 367 Israeli-founded corporations working within the Golden State.
“This report underscores the depth and resilience of the California-Israel financial relationship,” mentioned Aaron Kaplowitz, president of USIBA.
“Anchored in Silicon Valley, Israeli-founded corporations carry cutting-edge innovation to California, assist tens of hundreds of jobs, and reinforce the state’s management within the international tech economic system.”
These corporations collectively generated $8.9 billion in financial output in 2024, whereas contributing $6.5 billion in worth added to the state economic system, the report discovered.
Researchers additionally estimated the businesses assist about 22,650 jobs throughout California, producing roughly $4 billion in wages and earnings for staff.
The evaluation additionally highlights the function Israeli startups play within the state’s know-how sector.
Among the many corporations working in California are 32 “unicorns” — privately held companies valued at $1 billion or extra — that keep both international or US headquarters within the state, the report mentioned.
Researchers say the connection between California and Israel has grown over many years as Israeli entrepreneurs develop into the world’s largest know-how hub.
“Israel’s emergence as a world innovation chief has intersected powerfully with California’s function because the world’s premier know-how economic system,” the report’s government abstract states.
The report comes as Gavin Newsom has confronted backlash over current feedback, together with calling former President Trump’s strike on Iran “unlawful” and criticizing Israeli management throughout a current interview.
“The Governor has platformed narratives superior by America’s enemies,” Beverly Hills Councilmember and three-time former Mayor John Mirisch mentioned after the governor’s feedback.
“California was as soon as a nationwide chief in holding Iran accountable, turning into the primary state to ban Iran-linked corporations from authorities contracts. Now its governor is lending credibility to the regime’s speaking factors.”
Throughout an look on Pod Save America, Newsom was requested by host Jon Favreau about Israeli Prime Minister Benjamin Netanyahu and the course of Israeli politics.
Newsom referenced commentary from Thomas Friedman of The New York Instances, saying some analysts warn Israel could possibly be transferring towards “form of an apartheid state.”
“It breaks my coronary heart, as a result of the present management in Israel is strolling us down that path,” Newsom mentioned, when requested whether or not the US ought to rethink points of its navy relationship with Israel.
On the identical time, the brand new financial report emphasizes that ties between Israel and California stay deeply embedded in enterprise and know-how networks.
The report notes that Israeli entrepreneurs usually select California as their major US base due to its focus of enterprise capital, international know-how companies and world-class universities.
