Daimler has set up a Mercedes-Benz Research and Development Centre in Tel Aviv focusing on digital vehicle and mobility services.

"Israel is among the top five ecosystems for innovation, digital technologies, new mobility services and car IT and is one of the top four largest talent pools in the world", said Daimler chairman, Dieter Zetsche.

"With our new Technology Centre in Tel Aviv, we want to strengthen our global R&D network and tap into this vibrant mix of creativity, optimism and digital competencies to develop innovative mobility solutions for our customers."

At the new digital hub in Tel Aviv, a team of about 25 employees will contribute to and support the worldwide activities in mobility services and digitalisation in 2018.

As well as development and testing of pilot projects for new user interfaces, the aim is to establish and maintain a network of local partners, universities and high-tech companies.

Working in tandem with the Israeli start-up community, the goal is to create various technologies which support the connected vehicle, such as biometric authentication, navigation and other innovations.