The Israeli Innovation story 2015 Naor Gilon Ambasciatore
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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 Source: Central Bureau of Statistics (excluding diamonds)
Main Export Destinations As a share of total exports 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
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. 9 B (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 Cloud-based web sites Internet Protocol application network navigation application development platform allows users to create web and mobile
R&D Centers In Israel Haifa Region Tel Aviv Region Northern 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, Ø Ø Inventiveness, creativity, ingenuity Daring, “can do it” attitude, drive No phobia of failure Military Service But less of, Ø Business acumen Ø Managerial skills (for larger organizations) Ø Patience, long horizon 16
Birth and death of High-Tech Companies in Israel 2007 -2012 700 697 689 687 631 616 600 500 400 325 266 275 305 350 299 200 140 100 0 2007 2008 2009 Companies Created 2010 2011 2012 Companies Closed Source: IVC Yearbook
& Italy @ Innovation Bilateral Agreements for Joint R&D Ø Ø Joint Industrial R&D Agreement, annual call for proposals (budget of € 3, 000 for each side) Joint Scientific R&D Agreement International Conferences and Exhibits Ø Ø Ø Watec Agritech Renewable energies Homeland security Cyber Protection and Security Biotech Bilateral Economic and Innovation events Ø Ø Ø 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 ambassador@roma. mfa. gov. il
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