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Technology and innovation
management in Israel
Isaure MAIZA
Sandra EDERY
GBEM_ 16/10/2007
Overview on the innovation in Israel
• Israel is a small country but has developed a high level of
technology which enables the economy of the whole
country to experience a high level of growth
• GNP reached $120 billion and its GDP equals the one of
Spain
• Innovation is highly developed in the country thanks to a
high number of researchers (140 engineers and researchers
for 10.000 inhabitants)
• There’s a high level of cooperation between universities and
industry in the country
• The “chef scientist”, that is a part of the ministry of
commerce and industry, helps a lot development of scholar
projects by giving and by creating technological incubators.
High technology in Israel
benefits the national growth
• The amount of M&A reached for the first time the amount of $
10.58 billion in 2006
• The biggest merger was Microsoft buying the Israeli software
manufacturer Mercury for $4.5 billion
• Israel is opening to the Global high tech industry and is now
called the “new silicon valley”, its growth rate is now 4.8%
• Start ups are also doing well, especially the ones specialized in
High technology products. 20 of them went public on the stock
market last year for about $693 billion.
• Such a growth on the High tech field creates employment in the
country. By the end of 2007 the unemployment rate should
decrease to 8.1% of the population (8.5% today)
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Israel comes second after Japan and Taiwan regarding the
amount of patents registered in the USA.
The country invests 4.7% of its GNP in research and
development (Whereas Europe plans to reach 10% in 2010)
The country is ranked by the IMD (World competitiveness
Yearbook)
first country regarding the quality of the graduate education
second regarding the sustainable development,
Second regarding the implementation of new technologies
Second as regards to the protection of the environment.
(source: http://www.anrt.asso.fr/com/imgAdmin/1125499067926.pdf)
How Israel manages sustainable innovation
and technology: Some examples
=> Research and development:
1. 24 industrial incubators were created in the past few
years. Most of them are dealing with development of
Environmental technologies
2. Environmental technology researches come from
academic institutes which are looking for international
partners and cooperation.
3. Researchers are working on the EDIG’s Solar Hybrid
Power Generator, and are trying to develop the solar
energy to enable a cleaner growth.
Technologies created by Israel
• Most of the Windows NT
and XP programmes have
been developped by
Microsoft Israel
• Microprocessors Pentium
4 and Centrino
• Voice Mail technology
• AOL Instant Messenger
ICQ
• 4th world air technology
(after the USA, Russia and
China)
• The most important air
fleet after the USA
• Israel has 3 000 high tech
companies and 500 bio
tech companies
Israeli medecine technology
• Israel is specialized in genetics, neurology and
ophthalmology
• Israeli medical and biotechnological firsts include state-ofthe-art surgical lasers
• The most important resource in Israel is its human capital,
including the flood of Russian-speaking scientists
• The Government is deeply involved in the medecine
technology: the Magnet program of the Chief Scientist of
the Ministry of Industry and Trade has a five-year budget
of over 200 million $US to support carefully targeted
generic technologies or pre-competitive concepts, such as
electro-optics or biomedical diagnostics
Source: site officiel du commerce et de l’industrie d’Israel
Leading indicators of technological competitiveness
in 2005
Technological Infrastructure
Source: Science and Engineering Indicators 2006
Productive capacity
International Agreements
• The US-Israel Binational Science Foundation (BSF), set up
(1974) to foster civilian research, is financed in equal
proportion by the two countries. Its present endowment
totals $100 million. Since its inception, BSF has awarded
nearly 2,000 grants at an expenditure of over $90 million.
• The US-Israel Binational Agricultural Research and
Development Fund (BARD) was established (1977) to
promote and support agricultural R&D. the amount of this
cooperation is $110 million.
• The US-Israel Binational Industrial Research and
Development Foundation (BIRD). BIRD has approved over
200 projects in telecommunications, electronics, computer
software/hardware and medical equipment. The fund
averages $110 million.
• The Britain-Israel Technology Foundation (BRITECH)
• The Canada-Israel Industrial Research and Development
Foundation (CIIRDF)
• The EU Sixth Framework. Fund of 17,5 billion euros
Source: Israel Ministry of Foreign Affairs 2007
“There is a greater concentration of talented
high-tech manpower here in comparison to
other countries almost to the extend of
Silicon Valley”, Bill Gates about Israel.
source: http://www.israelvalley.com/articles/recherche-developpement