The Israeli Innovation story 2015

Naor Gilon Ambasciatore

Created in - Part of your life

8 millions $291 Billion

Israel @ A Glance

GDP Growth

Israel compared to advanced economies, annual rate of change, constant prices Since 2004, Israel’s growth rate has exceeded the average growth rate of advanced economies.

In 2009, as most of the world experienced a decline in GDP, Israel experienced a 1.2% growth in it’s GDP.

All data taken from OECD * Data from respective official source (CBS, OECD (forecast), Eurostat, BEA) Source: CBS, OECD, Eurostat, BEA

1980-2013: A High-Tech Oriented Industry

Low Tech 8% Med-Low Tech 18% Med Hi-Tech 26% Source: Central Bureau of Statistics (excluding diamonds) High Tech 48%

As a share of total exports

Main Export Destinations

Source: Central Bureau of Statistics

Innovation in Israel

Did you know is… 1 st

in the world for scientific research

1 st

in the world for entrepreneurship

1 st

in the world for information technology skills

1 st

in the world for

number of patents in the US 1 st

in the world for flexibility and adaptability

2

nd in the world for innovative capacity

2 nd

in the world for venture capital

Source: World Economic Forum, Global Competitiveness Report

Israel is a global leader in research & innovation

Israel

Level of innovation

Source: World economic forum, 2011

Startup Nation by the numbers

In 2014-15, Israeli exits amounted to over $15

Billion

Israel has the largest number of startup companies in the world per capita (5,000 companies with 1,000 introduced to the industry annually) Israel has more NASDAQ listed companies than any other country besides the U.S. - more than all of Europe, India, China and Japan combined

Technologies “MADE IN ISRAEL”

The

cell phone

was developed by the Israeli Motorola branch The

flash memory

data storage device with a USB interface The now standard

Firewall and VPN

computer security systems The technology for the AOL

instant messenger

, ICQ, was developed in 1996 Chosen as the solution to

internationally stream

the 2014 World Cup The world’s

largest online poker

company sold for 4.9B (June 2014) Developed the first

ingestible video camera

in the size of a pill The world’s most-used

translation software

A cross platform, instant messaging,

voice-over Internet Protocol

application A

GPS

based geographical

social network navigation

application Cloud-based

web development platform

allows users to create web and mobile sites

Haifa Region R&D Centers In Israel Northern Region Tel Aviv Region Jerusalem Region Southern Region

Over 250 foreign companies have established R&D centers in Israel Over 50,000 people are employed at these R&D centers in Israel Maps: Wikipedia

R&D Expenditure as % of GDP 2010 or latest available year

Israel is 1

st

in the OECD in expenditure on R&D (research & development) as % of GDP, demonstrating innovation, development and creativity.

Additional Sources: OECD

Government Policy for R&D

•

High Government investments: about 4.25% of its GDP in R&D, which is the highest ratio of any country in the world*

• • • • • Coordinating element: Office of chief scientist MOT Government initiated VC industry back in 1993 creating

Yozma

fund Government programs:

Magnet

–encourage cooperation between the industry and leading academic scientific research,

Tnufa

program provides seed funding for start up companies. Tax law reforms reduced corporate tax down to 10% Bilateral R&D agreements creating funds IMD World Competitiveness Yearbook 2012

Entrepreneurship, Israeli style

Advantages,

 Inventiveness, creativity, ingenuity  Daring, “can do it” attitude, drive  No phobia of failure  Military Service

But less of,

 Business acumen  Managerial skills (for larger organizations)  Patience, long horizon 16

500 400 300 200 100 0

Birth and death of High-Tech Companies in Israel 2007-2012 697 687 689

700

631 616

600

266 275 325 305 299 350 140

2007 2008 2009

Companies Created

2010 2011

Companies Closed

2012 Source: IVC Yearbook

& Italy @ Innovation

Bilateral Agreements for Joint R&D

 Joint Industrial R&D Agreement, annual call for proposals (budget of € 3,000,000 for each side)  Joint Scientific R&D Agreement

International Conferences and Exhibits

 Watec  Agritech  Renewable energies  Homeland security  Cyber Protection and Security  Biotech

Bilateral Economic and Innovation events

 Space  Cyber Security  Fintech 18

Concluding remarks

To innovate means first and foremost to change, hence to encourage innovation society needs to accept, promote, and bear the consequences of change.

Grazie

Naor Gilon [email protected]