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The Israeli Innovation story
2015
Naor Gilon
Ambasciatore
Created in
- Part of your life
Israel @ A Glance
8 millions
$291 Billion
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%
Main Export Destinations
As a share of total exports
Source: Central Bureau of Statistics
Innovation in Israel
Did you know
is…
1st in the world for scientific research
1st in the world for entrepreneurship
1st in the world for information technology skills
1st in the world for number of patents in the US
1st in the world for flexibility and adaptability
2nd in the world for innovative capacity
2nd in the world for venture capital
Source: World Economic Forum, Global Competitiveness Report
Quality of Scientific Research
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
The world’s largest
stream the 2014 World Cup
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
A GPS based geographical social network
Cloud-based web
sites
Internet Protocol application
navigation application
development platform allows users to create web and mobile
R&D Centers In Israel
Haifa Region
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 1st 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
Birth and death of High-Tech Companies in Israel
2007-2012
700
697
689
687
631
616
600
500
400
325
300
266
275
350
305
299
200
140
100
0
2007
2008
2009
Companies Created
2010
2011
2012
Companies Closed
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]