Israel is a leading innovation center. With its first-rate performance, many think it is second in the world only to the Silicon Valley. Consider the three following examples.
The World Economic Forum’s 2016-2017 Global Competitiveness Report is one indicator that demonstrates Israel’s remarkable innovation leadership. In the category of “Innovation,” the report compared 138 economies on the basis of several important factors, such as the quality of their scientific research institutions, university-industry R&D collaboration, and availability of scientists and engineers. The result – Israel was found to be the second best place in the world for innovation. It was also found to have the second best venture capital availability.
Moreover, Israel has the second largest presence on Nasdaq, which is one of the two largest stock exchanges in the world by market capitalization. In fact, over 90 Israeli companies are listed on Nasdaq, 30 of which are in the biomedical sector, and 50 in various high tech sectors. Their aggregate market capitalization – 70 Billion USD.
One last statistic to note is the tech exits. Some of the high-profile exits included community-based navigation app Waze (acquired by Google for 1.1 Billion USD), self-driving car technology firm Mobileye (acquired by Intel for 15.3 Billion USD), and fraud-prevention firm Trusteer (acquired by IBM for 1 Billion USD). In total, over the past five years (2012-16), Israeli startups were sold to other companies or through IPOs for over 47 Billion USD. Indeed, Israeli tech companies have a long history of building world-class products, such as in software and semiconductor development.
In short, Israel houses one of the world’s highest preforming innovation ecosystems and a leading source of technologies that change the world. And as the Israeli tech industry further continues its rapid growth, it is fascinating to imagine what the future will bring.