1. The Israel High Tech Industry

2. ISRAEL • Population: 7.3 M • Households: 1.8 M
• Urban Population: 91.5%
• Area - grand total 22,145 sq. km
• GDP Per Capita: US $ K$31,767
Unemployment 6.8%
• Fixed line Telephone Subs – 2.9M
• Mobile – 7.7M (106% penetration)
• Internet Users: 2.5M
Gross domestic product
Валовой внутренний продукт

3. Israel Is The Leader Among Non US Countries Listed on NASDAQ71
Canada 59
U.K. 10 9
Netherlands 8
Hong Kong
Japan 8
Singapore 7
France 6
S. Korea 5
India 3
Taiwan 2
Germany 2 10 20 30 40 50 60 70 80
Number of Companies Listed on NASDAQ
Source: NASDAQ as of September 2007.

4. Venture capital : keren hon/sikun developed since 1993 following “yozma” project

5. Proportionately, Israel spends more money on R&D than any other country in the world

6. Engineers graduates per year in 2006
Israel 8000 engineers /year (pop 7.2M) 0.11%
France 30 000 engineers/year, (pop 64M) 0.046%
UK engineers/year (pop 60M) 0.04%
USA engineers/ year (pop 300M) 0.024%
China 600 000 engineers/year (pop 1.3Bn) %
India engineers/year (pop 1.1Bn) 0.036%
Japan engineers/year (pop 127M) 0.07%

7. The Role of the Government
The government is hugely supportive of Israel’s hi-tech sector and has played a crucial role in its development.
Its main instrument of innovation is the Office of the Chief Scientist
The most important government initiatives include:
The Yozma Program for jump-starting the venture capital sector
Israel-US BIRD Foundation - has provided $245M to 740 joint R&D projects
- products developed have generated sales of over $8B
The R&D Fund
The Technological Incubators Program
The Magnet Program for creating consortia of industry and academia
Bird = Bi national R&D Foundation

8. The Role of the Government
Favorable Regulatory Environment
Strict international standards for protection of trademarks, patents and intellectual property of all kinds
Investor friendly
comprehensive legal protection of foreign companies
an advanced banking and financial sector
favorable tax treatment for foreign investors
worldwide taxation treaties and free trade agreements

9. Foreign Investments in Israel

10. Foreign Investment in Israel 2006/7

11. Foreign Investment in Israel 2006/7
Med Impuls
50$M
40$M
12$M

12. Foreign Investment in Israel 2006/7

13. FOREIGN ELECTRONIC SUBSIDIARIES IN ISRAEL
(PARTIAL LIST)
Intel *
Microsoft
IBM
Sun Microsystems
Cisco
3 Com
HP*
Texas Instruments*
National S.C
ST Microelectronics
Infineon
Analog Devices
Vishay*
AVX (Kyocera)
General Electric
Philips Medical
Flextronics*
Motorola*
Lucent Technologies
Avaya
Nortel*
Siemens
Alcatel
Philips
Ericsson
Nokia
ADC
Qualcomm
Applied Materials
KLA - Tencor
Kulicke & Soffa*
BAE Systems Ind.
Astronautics
Sanmina-SCI*
Berkshire
Alcatel Lucent
Verifone*
Kodak*
Nortel
SanDisk
EMC
Stryker
TA associates
Google
Xerox
Sun CA
Microsemi
AMS
Pricer
EPIX
Etc…
* Design & MFG

14. VC in Israel

17. Israel’s Hi-tech

18. ISRAEL ELECTRONICS & SOFTWARE INDUSTRIES SALES & EXPORT (M$)

19. EUROPE USA Rest of the world ASIA
ISRAEL ELECTRONICS & INFORMATION INDUSTRIES
,700 M$
36%
39%
EUROPE
USA 5%
20%
Rest of the world
ASIA

20. Medical
Aerospace & Defence
Communications
Computer Hardware
Consumer
Industrial
Aftercare
Security Applications
Semiconductor
Transport

21. Medical Systems Industrial Equipment
ISRAEL ELECTRONICS & INFORMATION INDUSTRIES
,700 M$
Medical
Systems
Civilian Comm. & Telecomm.
8.8%
22.9%
Software
23.7%
13.4%
13.4%
17.8%
Components
Defense
Systems
Industrial
Equipment

22. TELECOMMUNICATIONS EQUIPMENT
Fiberoptic & Photonic Systems
SDH, SONET
Access – XDSL
ATM, Frame Relay
IP Networks – Voice, Video, Data, Multimedia
Routers, Load balancing
Test Equipment, Quality Monitoring of Networks
3G Applications
Home Networks
Storage Area Networks
Wireless Local Loop, Microwave
VPN, Firewalls
WiMAX
Video-Compression, Video-Conferencing & Video Networks
23%
CHECKPOINT
SCOPUS
OPTIBASE
ZORAN
TELRAD
ECI
TADIRAN
RAD
GILAT
MOTOROLA
ALVARION
etc..

23. MAJOR MILITARY SYSTEMS
Missiles and Guided Weapons
Anti Aircraft and Anti-Missiles Systems
Radars - Airborne, Naval, Ground
EW Equipment
Fire Control Systems
Command, Control, Communications and Intelligence Systems
Avionic Equipment
Platforms (Aircraft, Tanks…) Retrofit and Upgrading
Navigation and Positioning Equipment
Tactical Airborne, Naval and Ground Communications
Sights and Night Vision
Simulation and Training Equipment
13.7%
ELBIT
IAI
ELTA
ELISRA
MAGAL
NICE
TADIRAN
RAFAEL
AERONAUTICS
BVR
etc,…

24. MAJOR INDUSTRIAL EQUIPMENT
Computerized Production Equipment
Computerized Control Systems
Test Equipment
Training and Education Systems
Consumer Products
Security Equipment
13..4%
Kodak-CREO
Degem
MER Group
LIPMAN-Verisign
M-Systems
NDS
ORBOTECH
RAPAK
VISONIC
CROW
KP electronics
Motorola
Magal
etc…

25. MAJOR MEDICAL EQUIPMENT
Imaging and Diagnostic Equipment
Surgical and Treatment Equipment
Monitoring Systems
8,8%
ELRON
Given Imaging
Lumenis
Philips
CADENT
BioView
Algotec GE
Rimed
Oridion
etc…

26. ELECTRONIC COMPONENTS
SEMICONDUCTORS
Design Centers
Manufacturing Facilities
PASSIVE COMPONENTS
Resistors & Networks
Capacitors
Transformers
Batteries
P.C. Boards
ACTIVE COMPONENTS
Tubes
Power Supplies
Oscillators
Detectors
Microelectronic Components
Microwave Components
13,4 %
Eltek
NDS
Vishay
Intel
Freescale
Texas Instrument
Zoran
DSP group
Analog Devices
etc..

27. SOFTWARE AudioCodes BVR CyOptics ECI Checkpoint IBM Formula Radware
INTERNET
MULTIMEDIA
SOFTWARE – PRODUCTS
SOFTWARE – TURNKEY PROJECTS
SOFTWARE - SUBCONTRACTING
23.7%
AudioCodes
BVR
CyOptics
ECI
Checkpoint
IBM
Formula
Radware
Comverse
Amdocs
etc..

28. Thank You !