Israel and Berlin Launch Aerospace Innovation Hub

A major aerospace company and one of Europe's most dynamic cities just joined forces to make innovation easier for startups tackling some of the world's toughest challenges.

Israel Aerospace Industries (IAI) and the State of Berlin signed an agreement in June 2026 to launch a new aerospace and defense innovation center in the German capital. The deal was sealed at a ceremony attended by Berlin Mayor Kai Wegner and IAI Chairman Boaz Levy.

The center will support startups working on aerospace, defense, security, and dual-use technologies. Through structured programs, these emerging companies will connect with industry partners, researchers, policymakers, and investors who can help turn their innovations into practical products and commercial successes.

But the partnership goes beyond just helping startups. IAI plans to expand its manufacturing operations in Berlin, creating highly skilled jobs and supporting long-term technological growth in the region.

"This initiative reflects our long-term relationship and commitment to Germany," said Boaz Levy. He explained that combining IAI's technical expertise with Berlin's vibrant innovation ecosystem will help connect advanced technologies with real operational needs and global markets.

Mayor Wegner called Berlin the ideal location for the center, pointing to growing global security challenges and the value of connecting established defense companies with fresh startup talent. "Our goal is to make Berlin the number one city for innovation," he said.

IAI already plays a significant role in Germany's defense sector. The company serves as the prime contractor for the Arrow-3 missile defense system, a critical part of Germany's air defense. It also supplies the Heron TP unmanned aerial system to the German Air Force and the BlueWhale autonomous submarine platform to the German Navy.

The Ripple Effect

The Berlin center joins IAI's growing global network of innovation programs, including Catalyst in the United States, NeuSPHERE in India, and ASTRA in Israel. This expanding network creates opportunities for startups to access expertise, funding, and market connections across multiple continents.

By bringing together established industry leaders and emerging innovators, the partnership creates a model for how cities and companies can work together to solve complex problems while building economic opportunity.

Berlin's aerospace and defense innovation scene just got a major boost that could shape the industry for years to come.