1. What can be learned from the Israel experience? Natalie Gutman Chen Commercial Attache Trade & Economic Mission of Israel in Milano Embassy of Israel

2. Why should we?

3. 3 GDP Growth Source: CBS, OECD Stat 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 1.1% growth in it’s GDP.

4. 4 Unemployment Rate Latest available data Additional Sources: OECD

5. Israel has a leading global position in research and innovation Level of innovation 2 Quality of Scientific Research IsraelIsrael Source: World economic forum, 2011

6. “Israel is the leading, largest and most promising investment hub outside the United States,” (Warren E. Buffett, Feb. 2013) “The range of innovative things that Israel is doing is remarkable. There is such a wide scope of exciting things going on here. Israel is a start-up center, and there is always something to challenge us here, or one that we can acquire.” (Steve Ballmer, Microsoft CEO November 2012) "It's no exaggeration to say that the kind of innovation going on in Israel is critical to the future of the technology business" (Bill Gates, 2005)

7. 1# Necessity is the mother of all inventions

8. Netafim - Drip (low volume) irrigation Given Imaging - Ingestible video camera M System’s Disk On Key and Disk On Chip flash memory AOL - Instant Messenger ICQ Waze - Community-based GPS traffic and navigation app Wix - Flash website platform PrimeSense - 3D sensing technology for Kinect Argo - Technology with motorized legs that power knee and hip movement Powermat – Wireless energy transfer Aqwize - Wastewater treatment solutions TaKaDu - Monitoring water networks Ormat - Geothermal energy and residual heat

9. 2# Support Innovation

10. 10 Source: OECD. * International Institute for Management Development (IMD) Global Competitiveness Yearbook 2011. ** World Economic Forum (WEF) Global Competitiveness Report 2013-2014. Civilian R&D as % of GDP, 2011  1 st in R&D expenditure as % of GDP*  1 st in quality of scientific research institutions**  1 st for entrepreneurship being widespread amongst its managers*  2 nd in public expenditure on education*  8 th in venture capital availability**  5 th in PCT patents applications per million population**  6 th for strength of investor protection**  6 Israelis in the last 10 years have been awarded Nobel Prizes in the fields of Economics or Chemistry

11. Government R&D Support Programs International Applied Academic Research Basic R&D Market Proximity Global Enterprises R&D Cooperation Galileo EUREKA Bi-national Agreements Bi-national Funds ISERD Horizon 2020 Long-Range R&D Kamin Nofar Cooperative R&D Seed Fund Technological Incubators Magneton Industrial R&D Tnufa Magnet Pre-SeedGeneric R&DCompetitive R&D

12. 3# Eco System

13. 4# Think Global

14. 10 Bilateral R&D Agreements CIIRDF - with Canada Europe SIIRD-with Singapore North America New York Maryland Virginia Wisconsin Colorado Massachusetts Oregon Ontario KORIL-RDF - With S. Korea Italy Trento (Italy) France Russia Germany Greece Denmark Hungary Turkey Portugal Finland Sweden Czech Republic Netherlands Lithuania Slovenia Cyprus Bulgaria Asia India China Jiangsu Province Shanghai Shenzhen South America Argentina Uruguay Brazil Australia Victoria BIRDF - with USA

15. 11 32 Multinational Agreements from all over the world:

16. 16 Israel’s Free Trade Agreements 1985 1992 1997 1999 2000 2007 USA EFTA Turkey Canada Mexico European Union (Association Agreement) MERCOSUR QIZ Agreements 2004 1998 Egypt Jordan Colombia* 2013 * Yet to be ratified

17. 5# Flexible work environment Young & varied population Less hierarchy Flexibility of the employment market Promote and reward Independent thinking Be digital- 8.6% out of the employees in Israel works in the ICT sector (2 nd in OECD).

18. 6# Take risks, don’t be afraid to fail… Every year around 600-700 new companies are being established in Israel and ~350 are being closed down.

19. What can we do together? R&D Cooperation (academic and industrial) Industrial cooperation answering needs of foreign markets Share experience and best practices: - Telemedicine solutions to provide better service and cut costs in health expenditures. -Tel Aviv just won the prize of World Smart Cities Award in the annual Smart City Expo World Congress in Barcelona for its Digi-Tel platformDigi-Tel platform

20. Thank you! Let’s keep in touch natalieg@israeltrade.gov.il