This research focuses on the Law for the Encouragement of Capital Investments, and argues that it has failed to achieve most of the goals it had set for itself, and led to the waste of NIS 500 million of taxpayer money.

The study argues that the Law must be revoked immediately, and provides suggestions for how the budgeted money can be used to actually induce capital investments in Israel, including:

1. Infrastructure spending to connect the periphery and center of Israel.
2. Lowering business tax, so as to attract private equity
3. Leveraging the money to provide increased credit access to business on Israel’s periphery.