From sleep to stress – the data driving the next big tech wave

Israel is making a strategic bet that the next wave of technological disruption won’t be driven by clicks or consumer data, but by human resilience itself.

In a joint move announced this week, the Israel Innovation Authority and the Tkuma Directorate will invest approximately NIS 5 million to establish a first-of-its-kind national “living lab” in Sderot, designed to transform real-world data on sleep, stress, behaviour and emotional response into the foundation of next-generation AI technologies.

The project positions Israel at the forefront of what insiders are calling the emerging “human data economy” – a fast-growing sector focused on translating biological and behavioural signals into actionable insights.

The Sderot lab will function as a real-world testbed, continuously collecting multidimensional data under everyday conditions. By combining physiological metrics, environmental factors and responses to crisis situations, researchers and companies will gain access to a dataset that currently does not exist at scale anywhere in the world.

For startups and tech firms, this creates a rare opportunity: the ability to develop, validate and commercialise products built on scientifically grounded human data.

Government officials framed the initiative as both a scientific milestone and a driver of regional economic recovery.

Ze’ev Elkin, Minister in charge of the North and South Rehabilitation, said: “Our mission in the Tkuma region is not only to restore what was damaged, but to build a stronger and more advanced future. The establishment of the national research lab for human resilience in Sderot is a clear example – an investment that connects security, innovation and economic growth.”

Gila Gamliel, Minister of Innovation, Science and Technology, added: “The Living Lab represents a new approach led by Israel — a deep integration between advanced science, artificial intelligence and real life. The decision to establish this infrastructure in Sderot reflects a belief that centres of innovation and growth can and should emerge beyond the centre of the country.

“Alongside its scientific contribution, the initiative will serve as a growth engine , creating high-quality jobs, attracting researchers and positioning the city as an international knowledge hub in human resilience.”

Aviad Friedman, head of the Tkuma Directorate, said the project is expected to “create high-quality jobs in research, engineering, data and AI,” while promoting the return of Israeli scientists and strengthening the regional innovation ecosystem.

Dror Bin, CEO of the Israel Innovation Authority, added: “The lab will be accessible to technology companies and academic researchers and is expected to accelerate the development of products and services in this field… a long-term strategic investment that will strengthen Israel’s position as a global innovation powerhouse.”

Beyond research, the initiative is explicitly designed with commercialisation in mind. Planned outputs include predictive analytics tools, intervention assessment systems and operational dashboards, all built and tested in real-world conditions.

The choice of Sderot is central to the project’s uniqueness. Years of living under sustained security pressure have created what officials describe as unparalleled real-world conditions for studying human resilience.

Four key user groups are expected to benefit: startups seeking validation, healthcare providers improving treatment outcomes, municipal authorities using data-driven tools, and academia developing policy and talent.

With early backing already secured from government, industry and research institutions, the initiative signals strong demand for infrastructure that bridges AI with human experience.

For Israel, the Sderot lab represents more than a new research facility. It is a strategic attempt to lead a new category of technology, where understanding how people cope and recover under pressure becomes a powerful economic asset.