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Wait up… 1-Israel- Defying the Odds.avi

Israel’s Innovation Policy Mr. Amos Eiran Senior Faculty Member ISEMI College for Entrepreneurship Education Sofia, 30 October 2014. Wait up… 1-Israel- Defying the Odds.avi. Presentation Outline. Israel - Introduction Israel at a Glance History of Israel’s Innovation Policy

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Wait up… 1-Israel- Defying the Odds.avi

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  1. Israel’s Innovation Policy Mr. Amos EiranSenior Faculty Member ISEMI College for Entrepreneurship Education Sofia, 30 October 2014

  2. Wait up…1-Israel- Defying the Odds.avi

  3. Presentation Outline • Israel - Introduction • Israel at a Glance • History of Israel’s Innovation Policy • Israel’s Success Factors

  4. Israel & the World Israel

  5. Map of Israel

  6. Israel at a Glance • Celebrated 66th anniversary in 2014 • Population today about 9 million (7 Jewish, 1.6 Arab [Muslims & Christians], 1.6 others [Christians, Druze, etc.]) • 1960s – approx. 70% of Israeli exports were agricultural • Today - high tech products are approx. 30% of exports • Agricultural produce less than 2% • No local markets  most start ups are export-oriented http://www.themarkerit.com/tmit/article/3681

  7. Innovation Snapshot • Over 120 listings of innovative companies on NASDAQ • 2nd only to Canada, in terms of presence in US stock markets • Approximately 5,000 start up companies engage in R&D • 60% are less than 5 years old • Approximately 800 high tech start-ups are established each yearsince the early 1990’s • 2nd highest number of start-up firms worldwide, after the U.S. (per capita) • The world’s highest % of scientists and engineers per capita

  8. Israel's High Tech Exports • In 2013 total exports of goods and services was about $US 70 B, of this approx. $US 21 B high tech & electronic industry (30%) • In 2009total exports of goods and services was $US 47.9B, of this approx. $US 17.9B high tech & electronic industry (37%) Exports move from West to East North America Europe Asia Source: Ministry of Industry & Trade, 2012

  9. Wait up…3-Startup Nation.avi

  10. History of Israel’s Innovation Policy (A) • Pre-1970 • Infrastructure built • 1967 • French Arms Embargo • Impetus for High-Tech Industry • 1955-85 • Industrial development of military technologies & systems • 1975 • Government Support Programs established • Office of Chief Scientist • Israeli Export Institute (IEI) • The Israel/US Bi-national Industrial Research & Development (BIRD)

  11. History of Israel’s Innovation Policy (B) • Establishment of bi-national & multinational industrial R&D foundations & agreements • BIRDF (1979) - USA-Israel Industrial R&D Foundation • CIIRDF (1994) - Canada-Israel Industrial R&D Foundation • SIIRD(1995) - Germany-Israel Industrial R&D Foundation • 1982- First success cases on NASDAQ (Scitex, Elscint) • 1990+ Establishment and operation of tech. incubators • Umbrella and nurturing environment for inventors • To support technologically-trained immigrants and Israeli citizens • Infrastructure supported 100% by Government

  12. History of Israel’s Innovation Policy (C) • Establishment and operation of “Yozma” (1993-95) • Government venture capital fund • Initial sum of $100 million • Privatized in 1998 • Establishment and growth of Israeli VC industry (1993) Catalyzed by: • the Yozma VC Fund • peace process • immigration • Intensive offerings on NASDAQ (Since 1994) • Emergence of Int’l investment banks in Israel (Since 1995)

  13. Israel’s Success Factors • Israel’s Higher Education System • The IDF as a source of excellent managers • Compulsory service for all • Fosters teamwork and technical excellence • Tech transfers from defense R&D to civilian markets • Government incentives to encourage capital investment and scientific R&D • Opening of large and rapidly growing international markets to Israeli exporters (result of peace processes) • Free trade agreements with U.S. and Europe

  14. Israel’s Higher Education System • The Sectors of Education, Health, Security were traditionally government controlled • The Higher Education system was originally based on the German system, now mostly US • Israel has 7 leading publicly-funded universities, which are research-focused. • It also has about 50 regional colleges (teaching focused), since early 1990’s

  15. Students in Higher Education Institutions • 1980 – 58,000 • 1990 – 70,000 • 2000 – 105,000 • 2011 – 250,000 • 2012 – 298,400 • 2013 – 305,550 Source: Based on PBC, Table 3.1 (Jerusalem, PBC, 2000 and Council of Higher Education website 2011-2013)

  16. Thank you for listening! Amos.eiran@gmail.com Please ask any question you like!

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