A report on intellectual capital commissioned by the Office of the Chief Scientist from Edna Pasher Ph.D. and Associates Management Consultants Ltd. states, as expected, that Israel’s main advantage is in R&D.
The report states that, even after the high-tech crisis, Israel has more start-ups than anywhere else, except for Silicon Valley. From only 50 start-ups in 1982, Israel now has over 2,500.
The report declares that in the knowledge-era of the 21st century, Israel’s main growth potential is derived from R&D. Israel is part of the global R&D establishment, alongside the US, Japan, and other countries.
Israel has the highest proportion of engineers per capita: 135 per 10,000 residents. Israeli workers are characteristically inquisitive, creative, and risk-taking; critical features for entrepreneurship and development.
The report says Israel has a supportive business environment, developed financial infrastructure, and legal framework that encourages investment in technological enterprises.
Israel is ranked first worldwide in R&D spending as a proportion of GDP. Its knowledge-intensive companies have been very successful in the global arena, including Check Point Software Technologies Ltd. (Nasdaq: CHKP), Teva Pharmaceutical Industries Ltd. (Nasdaq:TEVA; TASE:TEVA), ECI Telecom Ltd. (Nasdaq: ECIL), and Israel Aircraft Industries Ltd. (IAI).
Israel is the second country in the world, after Sweden, to issue an intellectual capital report on its overall core capabilities that give it a relative advantage and indicate growth potential.
Published by Globes [online], Israel business news - www.globes.co.il - on November 15, 2005