March 24, 2009
This is a special report from The Economist, which is no friend of Israel.
It makes the very interesting point that Israeli people are very motivated because they are a few millions and surrounded by a thousand of millions of Islamists.
There are of course other reasons. The report does not go into detail about the many inventions in the computer and medical world, that as we speak are of great service to humanity.
So then why the illogical hatred which many countries have for Israel and for Jews, as was on show in the horrific anti Israel marches during the Gaza war, when some likened Gaza to the Warsaw Ghetto, others directly called Israel and Jews “Nazis” etc?
[Begin report from The Economist here]
A special report on entrepreneurship
Lands of opportunity
Mar 12th 2009
From The Economist print edition
Israel, Denmark and Singapore show how entrepreneurialism can thrive in different climates
DOV MORAN’S desk is littered with the carcasses of dismembered phones. Mr Moran has already had one big breakthrough: inventing the now ubiquitous memory stick. But he dreams of another one: he wants to separate the “brains” of the various gizmos that dominate our lives from the “bodies” to enable people to carry around tiny devices that they will be able to plug into anything from phones to cameras to computers. Mr Moran sold his memory-stick business to SanDisk for $1.6 billion, creating a thriving technology cluster near his office. This time he wants to build an Israeli business that will last, challenging the giants of the camera and phone businesses.
Israel is full of would-be Dov Morans. It is home to 4,000 high-tech companies, more than 100 venture-capital funds and a growing health-care industry. Innovations developed in the country include the Pentium chip (Intel), voicemail (Comverse), instant messaging (Mirabilis, Ubique), firewalls (Checkpoint) and the “video pill”, which allows doctors to study your insides without the need for invasive surgery.
Even more than other countries, Israel has America to thank for its entrepreneurial take-off. A brigade of American high-tech companies, including Intel and Microsoft, have established research arms there. And a host of Israelis who once emigrated to America in search of education and opportunity have returned home, bringing American assumptions with them. Many Israeli entrepreneurs yo-yo between Silicon Valley and Tel Aviv; almost 70 Israeli companies are traded on NASDAQ.
The Israeli government helped by providing a ready supply of both human and physical capital. Israel has the world’s highest ratio of PhDs per person, the highest ratio of engineers and scientists and some of the world’s best research universities, notably Technion. The country’s native talent was supplemented by the arrival of 400,000 well-educated Jewish refugees from the former Soviet empire.
However, Israel’s main qualification for entrepreneurialism is its status as an embattled Jewish state in a sea of Arab hostility. The Israeli army not only works hard to keep the country at the cutting edge of technology, it also trains young Israelis (who are conscripted at 18) in the virtues of teamwork and improvisation. It is strikingly common for young Israelis to start businesses with friends that they met in the army. Add to that a high tolerance of risk, born of a long history and an ever-present danger of attack, and you have the makings of an entrepreneurial firecracker.