ts have increased more than total exports; and the number of people employed in industry has risen more than in any other branch of the economy. Furthermore, the future development of the Israeli economy depends on the growth of the industrial sector. In recent times, this sector has accounted for about 65% of the total export of goods and services, has received about 25% of the total investments in the economy, has produced 23% of the total national product and has employed about 22% of the total number of workers. These achievements in the manufacturing industry stand out, not only because of the fact that its product actually shrunk in the first three years of statehood (when public and economic attention was focused on the physical absorption of the new immigrants), but also in view of the pre-statehood Zionist policymakers' "ideological" disregard of industry during the first decades of renewed Jewish settlement in the Land of Israel. These leaders saw agricultural settlements as the highest priority and gave this area of activity whatever financial support could be raised. In those years, industry was thought of, at best, as essential in order to serve agriculture. The status awarded to industry only improved during WWII when it made a significant contribution to the war effort of the Allies. Between 1950 and 1996, industrial exports rose from $13 million to $17.1 billion, a 167-fold increase (in real terms). The number of people employed in industry rose by four times, from 95,000 to 388,000. In the period 1952-1973, total industrial output grew at an average of about 12% per year, whereas during 1974-1996 it grew by an average of about 4% annually. The growth of the hi-tech section of industry is even more remarkable: 30 years ago it was 37% of the industrial output, compared to 56% a decade ago and 66% today. In 1970 hi-tech exports amounted to $540 million, or 20% of total industrial exports, whereas in 1996 they were 20 times...
