Israel has more startups and unicorns per capita than any country in the world. 

But the Startup Nation success story is concentrated in a few well-defined areas. And East Jerusalem certainly isn’t among them.

The overwhelming majority of Israel’s 7,100-plus startups are based in Tel Aviv. There are also hubs in Haifa, Herzliya, Rehovot, Ness Ziona and – some way down the list – the capital, Jerusalem.

But among the 400,000 predominantly Arab residents of the east side of Jerusalem, there has, until now, been little startup activity at all.  

Mahmoud Khweis, 51, a prominent entrepreneur, researcher, public speaker, mentor and former Israel/Palestine negotiator, is on a mission to change that.

In October 2021 he founded Techlinic, the first Palestinian-owned tech firm in East Jerusalem. The software development company has trained 120 local residents in software development and validation. It outsources their services and provides technical and business development training.

Khweis is now building on its success with the launch of Jinnovate, East Jerusalem’s first health-tech accelerator, currently supporting a portfolio of 14 early-stage startups.

A helping hand

Startups don’t survive in isolation. They need office space, facilities and equipment. 

But more than that, they need guidance, mentors, business skills, networking opportunities, a helping hand, a listening ear … and access to funding.

“The issue is that in East Jerusalem the innovation is close to zero,” Khweis tells ISRAEL21c.

“We don’t have enough startups, we don’t have innovation centers or activities. There is no ecosystem in East Jerusalem, there is no platform for startups, there are [currently] no incubators.

“There is no support from the Palestinian government towards East Jerusalem. Until now, there was very little support from the Israeli government, and we were the first entity [to receive a grant] from the Israeli Innovation Authority.

“At Jinnovate — the Jerusalem Innovation Health-Tech Center — we provide services, mentorship, training, capacity building, access to finance, access to market for entrepreneurs, medical professionals, everyone who has an innovative idea in the health sector, especially those who would work on the unmet health needs.”

The Israel Innovation Authority, a government agency, is providing almost all its funding — $2.7 million over five years.

The United States Agency for International Development (USAID) has invested $150,000. And the Jerusalem municipality has provided office space.

Jinnovate receives business and professional support from two of Israel’s leading health innovation centers – Shaare Zedek Medical Center in Jerusalem and the ARC Innovation Center at Sheba Medical Center – as well as from the Takwin Venture Capital fund. 

“These strategic partners provide critical expertise, resources and connections to help build a sustainable and thriving startup ecosystem in East Jerusalem,” says Khweis.

The first Jinnovate startups

Among the startups Jinnovate is supporting is Healers, which is developing a new cutting device for thoracic surgeons. It eliminates the need for stainless steel or titanium wires to close incisions, thus minimizing the risk of infection, reducing pain and speeding up recovery times.

Line of Sight is using virtual data and a form of AI to help surgeons better predict the complex interaction between bone and soft tissue during corrective jaw surgery. 

And Mirror Digital is working on a way to integrate patients records, by bridging gaps between two different data management systems that don’t always talk to each other.

Jinnovate’s target is to have the first Arab “exit” – the sale of a thriving startup – within five years. 

“Until now we’ve not had one successful exit,” says Khweis. “The Jewish Israelis have plenty. This is why most of our trainers’ expertise comes from the Israeli ecosystem.”

He says the vast majority of people they’ve encountered from the Israeli startup ecosystem are keen to see theirs succeed.

“We’re trying to build bridges, economic bridges, and we need to start by having tight economic relations. We want people to meet each other and work with each other.”

Innovation in hospitals

In addition to helping startups take their first steps, Jinnovate also aims to foster an innovation culture within Palestinian hospitals.

He points to Sheba Medical Center, near Tel Aviv, which is at the forefront of integrating patient care with innovation. Startups are physically located in the hospital, drawing on decades of medical data.

Khweis says it’s a far cry from the seven Palestinian-run hospitals in East Jerusalem, where chronic underfunding leaves little opportunity for anything beyond basic patient care.

“The system in the hospitals in East Jerusalem doesn’t encourage innovation, but since we targeted them with our leadership programs they now understand the impact and the profit that they’re going to make when they start working in innovation.”

He said two East Jerusalem hospitals — Saint Joseph Hospital and St. John Jerusalem Eye Hospital – are now working closely with Sheba and with Shaare Zedek Medical Center to establish their own innovation center.

“Currently it’s a one-way transfer of technology because in East Jerusalem we don’t yet have technology to share, but we have great minds,” he says.

Jinnovate started during the ongoing war, by far the longest in Israel’s history. But Khweis says this hasn’t harmed its progress. 

“When I want to do something, I’ll do it. East Jerusalem was neglected for a long time. I believe that we need to see more projects — real projects on the ground.”

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