A report in the printed edition of "The Economist" finds what to praise in Israel's high-tech industry, saying a high tolerance for risk, and skills and camaraderie developed in the IDF, provide the makings of an "entrepreneurial firecracker".
Israel was listed among "lands of opportunity", along with Denmark and Singapore. The report notes that governments of all three countries enthusiastically endorse entrepreneurship, though, "the Danes and the Singaporeans regard it as their ticket to success in a global economy and the Israelis as a matter of survival".
"The Economist" says Israel has 4,000 high-tech companies, and about 100 venture capital funds, though that figure seems somewhat imprecise. The magazine lists innovations developed in Israel, including the Pentium chip by Intel, voicemail developed by Comverse Technology Inc. (Pink Sheets: CMVT.PK), firewalls developed by Check Point Software Technologies Ltd. (Nasdaq: CHKP), and the Pillcam developed by Given Imaging Ltd. (Nasdaq: GIVN; TASE: GIVN).
"The Economist" says, "Even more than other countries, Israel has America to thank for its entrepreneurial take-off." The magazine notes that Intel and Microsoft, among others, opened development centers here, and that many Israelis study in the US, and return to Israel to develop their careers and ideas. "Many Israeli entrepreneurs yo-yo between Silicon Valley and Tel Aviv; almost 70 Israeli companies are traded on NASDAQ," it writes.
The article also says that bonds developed during army service often lead to joint start-ups, and that the relationships and trust built while serving in the IDF, in addition to the tolerance for risk developed by living in a country which is often at danger of being attacked, combine to foster the entrepreneurial spirit.
Published by Globes [online], Israel business news - www.globes-online.com - on March 23, 2009
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