Naor Gilon Ambasciatore The Israeli Innovation story 2015

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A Glance 8 millions $291 Billion

GDP Growth Israel compared to advanced economies, annual rate of change, constant prices Source: CBS, OECD, Eurostat, BEA Since 2004, Israel’s growth rate has exceeded the average growth rate of advanced economies. In 2009, as most of the world experienced a decline in GDP, Israel experienced a 1.2% growth in it’s GDP. All data taken from OECD * Data from respective official source (CBS, OECD (forecast), Eurostat, BEA)

: A High-Tech Oriented Industry Source: Central Bureau of Statistics (excluding diamonds)

Main Export Destinations As a share of total exports Source: Central Bureau of Statistics

Innovation in Israel

Did you know is… 1 st in the world for scientific research 1 st in the world for entrepreneurship 1 st in the world for information technology skills 1 st in the world for number of patents in the US 1 st in the world for flexibility and adaptability 2 nd in the world for innovative capacity 2 nd in the world for venture capital Source: World Economic Forum, Global Competitiveness Report

Israel is a global leader in research & innovation Level of innovation Quality of Scientific Research Source: World economic forum, 2011 Israel

In , Israeli exits amounted to over $15 Billion Israel has the largest number of startup companies in the world per capita (5,000 companies with 1,000 introduced to the industry annually) Israel has more NASDAQ listed companies than any other country besides the U.S. - more than all of Europe, India, China and Japan combined Startup Nation by the numbers

The cell phone was developed by the Israeli Motorola branch The flash memory data storage device with a USB interface The now standard Firewall and VPN computer security systems The technology for the AOL instant messenger, ICQ, was developed in 1996 Chosen as the solution to internationally stream the 2014 World Cup The world’s largest online poker company sold for 4.9B (June 2014) Developed the first ingestible video camera in the size of a pill The world’s most-used translation software A cross platform, instant messaging, voice-over Internet Protocol application A GPS based geographical social network navigation application Cloud-based web development platform allows users to create web and mobile sites Technologies “MADE IN ISRAEL”

Haifa Region Tel Aviv Region Jerusalem Region Southern Region Northern Region R&D Centers In Israel Maps: Wikipedia Over 250 foreign companies have established R&D centers in Israel Over 50,000 people are employed at these R&D centers in Israel

2010 or latest available year Additional Sources: OECD Israel is 1 st in the OECD in expenditure on R&D (research & development) as % of GDP, demonstrating innovation, development and creativity. R&D Expenditure as % of GDP

High Government investments: about 4.25% of its GDP in R&D, which is the highest ratio of any country in the world* Coordinating element: Office of chief scientist MOT Government initiated VC industry back in 1993 creating Yozma fund Government programs: Magnet –encourage cooperation between the industry and leading academic scientific research, Tnufa program provides seed funding for start up companies. Tax law reforms reduced corporate tax down to 10% Bilateral R&D agreements creating funds Government Policy for R&D IMD World Competitiveness Yearbook 2012

16 Entrepreneurship, Israeli style Advantages,  Inventiveness, creativity, ingenuity  Daring, “can do it” attitude, drive  No phobia of failure  Military Service But less of,  Business acumen  Managerial skills (for larger organizations)  Patience, long horizon

Source: IVC Yearbook Birth and death of High-Tech Companies in Israel

18 & Innovation Bilateral Agreements for Joint R&D  Joint Industrial R&D Agreement, annual call for proposals (budget of € 3,000,000 for each side)  Joint Scientific R&D Agreement International Conferences and Exhibits  Watec  Agritech  Renewable energies  Homeland security  Cyber Protection and Security  Biotech Bilateral Economic and Innovation events  Space  Cyber Security  Fintech

Concluding remarks To innovate means first and foremost to change, hence to encourage innovation society needs to accept, promote, and bear the consequences of change.

Naor Gilon Grazie