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What can be learned from the Israel experience? Natalie Gutman Chen Commercial Attache Trade & Economic Mission of Israel in Milano Embassy of Israel Why should we? GDP Growth 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 1.1% growth in it’s GDP. Source: CBS, OECD Stat 3 Unemployment Rate Latest available data Additional Sources: OECD 4 Israel has a leading global position in research and innovation Quality of Scientific Research Israel Level of innovation Source: World economic forum, 2011 2 “Israel is the leading, largest and most promising investment hub outside the United States,” (Warren E. Buffett, Feb. 2013) “The range of innovative things that Israel is doing is remarkable. There is such a wide scope of exciting things going on here. Israel is a start-up center, and there is always something to challenge us here, or one that we can acquire.” (Steve Ballmer, Microsoft CEO November 2012) "It's no exaggeration to say that the kind of innovation going on in Israel is critical to the future of the technology business" (Bill Gates, 2005) 1# Necessity is the mother of all inventions Netafim - Drip (low volume) irrigation Given Imaging - Ingestible video camera M System’s Disk On Key and Disk On Chip flash memory AOL - Instant Messenger ICQ Waze - Community-based GPS traffic and navigation app Wix - Flash website platform PrimeSense - 3D sensing technology for Kinect Argo - Technology with motorized legs that power knee and hip movement Powermat – Wireless energy transfer Aqwize - Wastewater treatment solutions TaKaDu - Monitoring water networks Ormat - Geothermal energy and residual heat 2# Support Innovation Civilian R&D as % of GDP, 2011 5 4.4 4 3.8 3 1st in R&D expenditure as % of GDP* 1st in quality of scientific research institutions** 1st for entrepreneurship being widespread amongst its managers* 2nd in public expenditure on education* 8th in venture capital availability** 5th in PCT patents applications per million population** 6th for strength of investor protection** 6 Israelis in the last 10 years have been awarded Nobel Prizes 2.8 2.3 2.0 2 1.9 1.8 1.8 1.7 1.7 1.6 1.3 1.3 1 Italy Spain Norway Ireland Canada United Kingdom Czech Rep. Belgium France Germany Finland Israel EU27 in the fields of Economics or Chemistry 0 10 Source: OECD. * International Institute for Management Development (IMD) Global Competitiveness Yearbook 2011. ** World Economic Forum (WEF) Global Competitiveness Report 2013-2014. Government R&D Support Programs Pre-Seed Generic R&D Competitive R&D Tnufa Magnet Technological Incubators Magneton Kamin Nofar Long-Range R&D Industrial R&D Seed Fund Cooperative R&D International Bi-national Funds Applied Academic Research Bi-national Agreements ISERD Horizon 2020 Basic R&D EUREKA Galileo Global Enterprises R&D Cooperation Market Proximity 3# Eco System 4# Think Global Bilateral R&D Agreements BIRDF - with USA CIIRDF - with Canada North America New York Maryland Virginia Wisconsin Colorado Massachusetts Oregon Ontario 10 South America Argentina Uruguay Brazil Europe Italy Trento (Italy) France Russia Germany Greece Denmark Hungary Turkey Portugal Finland Sweden Czech Republic Netherlands Lithuania Slovenia Cyprus Bulgaria SIIRD-with Singapore KORIL-RDF - With S. Korea Asia India China Jiangsu Province Shanghai Shenzhen Australia Victoria 32 Multinational Agreements from all over the world: 11 Israel’s Free Trade 1985 1992 Agreements QIZ Agreements USA EFTA 2013 1998 Jordan 2004 Egypt Colombia* 1997 Turkey 1997 Canada 1999 Mexico 2000 European Union (Association Agreement) 2007 MERCOSUR * Yet to be ratified 16 5# Flexible work environment • • • • • Young & varied population Less hierarchy Flexibility of the employment market Promote and reward Independent thinking Be digital- 8.6% out of the employees in Israel works in the ICT sector (2nd in OECD). 6# Take risks, don’t be afraid to fail… Every year around 600-700 new companies are being established in Israel and ~350 are being closed down. What can we do together? • R&D Cooperation (academic and industrial) • Industrial cooperation answering needs of foreign markets • Share experience and best practices: Telemedicine solutions to provide better service and cut costs in health expenditures. - Tel Aviv just won the prize of World Smart Cities Award in the annual Smart City Expo World Congress in Barcelona for its Digi-Tel platform Thank you! Let’s keep in touch [email protected]