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

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

4. Israel & the World 4 Israel

5. Map of Israel 5

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 6 http://www.themarkerit.com/tmit/article/3681

7. Innovation Snapshot Over 120 listings of innovative companies on NASDAQ 2 nd 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 year since the early 1990’s – 2 nd highest number of start-up firms worldwide, after the U.S. (per capita) The world’s highest % of scientists and engineers per capita 7

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 2009 total 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 8 Source: Ministry of Industry & Trade, 2012

9. Wait up… 3-Startup Nation.avi 9

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) 10

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 11

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) 12

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 13

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 14

15. Students in Higher Education Institutions 1980 – 58,000 1990 – 70,000 2000 – 105,000 2011 – 250,000 2012 – 298,400 2013 – 305,550 15 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!