Transcript Slide 1
1 Wait up… 1-Israel- Defying the Odds.avi 2 Presentation Outline • • • • Israel - Introduction Israel at a Glance History of Israel’s Innovation Policy Israel’s Success Factors 3 Israel & the World Israel 4 Map of Israel 5 Israel at a Glance • Celebrated 66th anniversary in 2014 • Population today about 9 million (7 Jewish, 1.6 Arab [Muslims & Christians], 1.6 others [Christians, Druze, etc.]) • 1960s – approx. 70% of Israeli exports were agricultural • Today - high tech products are approx. 30% of exports – Agricultural produce less than 2% • No local markets most start ups are export-oriented http://www.themarkerit.com/tmit/article/3681 6 Innovation Snapshot • Over 120 listings of innovative companies on NASDAQ • 2nd only to Canada, in terms of presence in US stock markets • Approximately 5,000 start up companies engage in R&D – 60% are less than 5 years old • Approximately 800 high tech start-ups are established each year since the early 1990’s – 2nd highest number of start-up firms worldwide, after the U.S. (per capita) • The world’s highest % of scientists and engineers per capita 7 Israel's High Tech Exports • In 2013 total exports of goods and services was about $US 70 B, of this approx. $US 21 B high tech & electronic industry (30%) • In 2009 total exports of goods and services was $US 47.9B, of this approx. $US 17.9B high tech & electronic industry (37%) Exports move from West to East North America Europe Asia 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 Exports 19.9 19.2 9.6 2007 Source: Ministry of Industry & Trade, 2012 21.9 21.2 12.0 17.6 15.4 19.6 18.9 12.9 21.4 19.0 15.3 9.3 2008 2009 2010 2011 8 Wait up… 3-Startup Nation.avi 9 History of Israel’s Innovation Policy (A) • Pre-1970 • Infrastructure built • 1967 • French Arms Embargo • Impetus for High-Tech Industry • 1955-85 • Industrial development of military technologies & systems • 1975 • Government Support Programs established • Office of Chief Scientist • Israeli Export Institute (IEI) • The Israel/US Bi-national Industrial Research & Development (BIRD) 10 History of Israel’s Innovation Policy (B) • Establishment of bi-national & multinational industrial R&D foundations & agreements – BIRDF (1979) - USA-Israel Industrial R&D Foundation – CIIRDF (1994) - Canada-Israel Industrial R&D Foundation – SIIRD(1995) - Germany-Israel Industrial R&D Foundation • 1982- First success cases on NASDAQ (Scitex, Elscint) • 1990+ Establishment and operation of tech. incubators – Umbrella and nurturing environment for inventors – To support technologically-trained immigrants and Israeli citizens – Infrastructure supported 100% by Government 11 History of Israel’s Innovation Policy (C) • Establishment and operation of “Yozma” (1993-95) – Government venture capital fund – Initial sum of $100 million – Privatized in 1998 • Establishment and growth of Israeli VC industry (1993) Catalyzed by: – the Yozma VC Fund – peace process – immigration • Intensive offerings on NASDAQ (Since 1994) • Emergence of Int’l investment banks in Israel (Since 1995) 12 Israel’s Success Factors • Israel’s Higher Education System • The IDF as a source of excellent managers – Compulsory service for all – Fosters teamwork and technical excellence • Tech transfers from defense R&D to civilian markets • Government incentives to encourage capital investment and scientific R&D • Opening of large and rapidly growing international markets to Israeli exporters (result of peace processes) • Free trade agreements with U.S. and Europe 13 Israel’s Higher Education System • The Sectors of Education, Health, Security were traditionally government controlled – The Higher Education system was originally based on the German system, now mostly US – Israel has 7 leading publicly-funded universities, which are research-focused. – It also has about 50 regional colleges (teaching focused), since early 1990’s 14 Students in Higher Education Institutions • • • • • • 1980 – 58,000 1990 – 70,000 2000 – 105,000 2011 – 250,000 2012 – 298,400 2013 – 305,550 Source: Based on PBC, Table 3.1 (Jerusalem, PBC, 2000 and Council of Higher Education website 2011-2013) 15 Thank you for listening! [email protected] Please ask any question you like!