Innovation Based Economy. The Israel Experience

Transcription

1 Innovation Based Economy The Israel Experience Eliezer (Moodi) Sandberg Former Minister of Science and Technology Former Minister of National Infrastructures

2 Israel at Glance Area: 20,325 sq.km Population: 7 Million Households: 1.8 M Literacy Rate (15 yrs) : 96% Urban Population: 91.5% GDP: 125 B USD Internet Users: 2.5 M (ADSL:1.5M) Fixed telephone Lines:3.2 M Mobile: 7.2 M (104%) Haifa Tel-Aviv Jerusalem Beer-Sheva

3 Jaffa Oranges vs. Software Exports ($ millions) 3500 Oranges Software

4 Expenditure on Civilian R&D as % GDP Source: Ministry of finance Finland Japan Switzerland Korea Germany Iceland USA Denmark France Belgium Netherlands Austria UK Norway Canada Ireland Australia Czech Republic New Zeland Italy Spain Portugal Greece Slovak Republic Israel Israel Sweden

5 Where does Israel excel? Telecommunication Software Encryption and data security Electronics Agro-technology Biotechnology Medical equipment Optics Internet Nanotechnology

6 Invented in Israel VoIP Pillcam RSA Copaxone DiskOnKey WiMAX Mobile Pentium Drip irrigation Instant Messaging (ICQ) FireWall (CheckPoint)

7 National Policy Chief Scientist (OCS) in the Ministry of Industry & Trade 24 Technology Incubators MAGNET Consortia Program Direct investment in R&D Companies: 1 B$ a Year The Ministry of Science & Technology Infrastructure Programs Tax Exemption Programs

8 Ministry of Science & Technology Infrastructure Programs: Materials Electro-Optical Materials Micro-Electronic Materials Biotechnology Nanotechnology Environment & Agriculture Biomedics Embrionic Stem Cells Regional R&D Centers 11 Centers from the Galilee (north) the Negev (south)

9 OCS Programs Local International R&D Fund Tnufa Technological Incubators Seed Fund Magnet Magneton, Nofar R&D Centers in Universities Support of Research Institutes Bi-National Funds Bi-National Agreements EU R&D Program FP-6 FP-7 US-Israel Science & Technology Commission

10 Building an Industry: Brief History 1918 Hebrew University in Jerusalem 1924 Technion in Haifa 1967 French Embargo 1969 Government R&D Centers 1973 Chief Scientist at the Ministry of Trade Law for the Encouragement of Industrial R&D 70 s-90 s - Large Scale Projects: Kfir, Lavy, Merkava, EW Free Trade Agreements with US and Europe: Israel is the only country with such agreements.

11 Creation of VC Industry The best deal the Government ever made! 1992: 100m$ to YOZMA Government-owned fund of funds Matching of 8M$ to 12M$ in private money to form a VC fund offering the option to buy out the Government 10 YOZMA Funds were created 1997: YOZMA Program ended RESULT: Local and foreign VC investments in VC fund of 8.2 B$ in Over 100 NASDAQ IPO s More than 3,000 Start-up Companies created over the years Ten s of Thousands of new jobs created

12 Nasdaq Index vs. VC Investments

13 Electronic and Software Industry SALES & EXPORT (M$) DOMESTIC EXPORT 16, , , , , , , 000 9, 000 8, 000 7, 000 6, 000 5, 000 4, 000 3, 000 2, 1, ,596 2,795 1,801 5,310 3,375 1,935 6,000 3,970 2,030 6,840 4,630 2,210 7,800 5,480 2,320 9,980 6,700 2,280 10,380 8,050 2,330 11, EST. 9,130 2,400 15,500 14,750 13,000 2,500 12,250 2,500 13,040 10,740 2,300 13,170 10,870 2,300 15,800 13,400 2,400 16, ,200 2,500

14 ISRAEL ELECTRONICS & SOFTWARE INDUSTRIES EXPORTS BY INDUSTRY GROUP 2005 Civilian Comm. & Telecomm. 13.4% 22.9% Medical Systems 8.8 % 23.7% Software Components 17.8% 13.4% Industrial Equipment Defense Systems

15 Scientists & Engineers per 10,000 pp Israel US Japan Germany Canada Switzerland Taiwan UK Ireland Italy Singapore Spain 0

16 R&D in Electronics and ICT as % of GDP 5 4 % % R&D per GDP % ICT R&D per GDP 0 ISRAEL SWEDEN USA JAPAN IRELAND Source: IVC Research Center, VenfureOne

17 Modern Technologies in Traditional Industries From Textile to R&D - Bagir Smart Agriculture - organitech Drip Irrigation - Netafim Water Technologies - Watech

18 If you will, it is no fairytale Theodor (Binyamin Ze ev) Herzl