what can be learned from the israel experience? natalie gutman chen commercial attache trade &...
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What can be learned from the Israel experience?
Natalie Gutman ChenCommercial Attache
Trade & Economic Mission of Israel in MilanoEmbassy of Israel
Why should we?
3
GDP Growth
Source: CBS, OECD Stat
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.
4
Unemployment RateLatest available data
Additional Sources: OECD
Israel has a leading global position in research and innovation
Level of innovation
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Qu
alit
y o
f S
cie
nti
fic
Re
se
arc
h Israel
Source: World economic forum, 2011
“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
4.4
1.8
1.3
3.8
2.8
2.3
2.0
1.81.9
1.7 1.7 1.6
1.3
0
1
2
3
4
5
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EU
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10Source: OECD. * International Institute for Management Development (IMD) Global Competitiveness Yearbook 2011. ** World Economic Forum (WEF) Global Competitiveness Report 2013-2014.
Civilian R&D as % of GDP, 2011
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
in the fields of Economics or Chemistry
Government R&D Support ProgramsIn
tern
ati
on
al
Applied AcademicResearch Basic R&D Market
Proximity
Global EnterprisesR&D Cooperation
GalileoEUREKA
Bi-national Agreements
Bi-national Funds
ISERDHorizon
2020
Long-RangeR&D
KaminNofar
Cooperative R&DSeed Fund
TechnologicalIncubators
Magneton
IndustrialR&D
Tnufa Magnet
Pre-Seed Generic R&D Competitive R&D
3# Eco System
4# Think Global
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Bilateral R&D Agreements
CIIRDF - with CanadaEurope
SIIRD-with Singapore
North America
New York
Maryland
Virginia
Wisconsin
Colorado
Massachusetts
Oregon
Ontario
KORIL-RDF - With S. Korea
ItalyTrento (Italy)FranceRussia
Germany
Greece
Denmark
Hungary
Turkey
Portugal
Finland
Sweden
Czech Republic
Netherlands
Lithuania
Slovenia
Cyprus
Bulgaria
AsiaIndia
China
Jiangsu Province
Shanghai
Shenzhen
South AmericaArgentinaUruguay
Brazil
AustraliaVictoria
BIRDF - with USA
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32 Multinational Agreements from all over the world:
16
Israel’s Free Trade Agreements
1985
1992
1997
1997
1999
2000
2007
USA
EFTA
Turkey
Canada
Mexico
European Union (Association Agreement)
MERCOSUR
QIZ Agreements
2004
1998
Egypt
Jordan
Colombia*2013
* Yet to be ratified
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
