1. 1 The Israeli Cleantech By Israel Drori, Shmuel Ellis, Mali Nevo Faculty of management Tel Aviv University The Israeli Cleantech By Israel Drori, Shmuel Ellis, Mali Nevo Faculty of management Tel Aviv University

2. Basic data There are currently 419 cleantech companies operating in Israel. These companies comprise just over 10% of the total of Israeli High-tech companies (approximately 4,015 companies in total). The Israeli cleantech sector produced in 2008 an estimated total of products and services worth between 2 and 2.5 Billion US $, which constitute between 0.8% and 1% of the total global cleantech market. 2

3. Five key aspects of the Israeli cleantech sector 1.Overall growth 2. Sub-sectors within the cleantech industry 3. Evolutionary stages of Israeli cleantech companies 4. Company size 5.Ownership, Capital raised and Annual revenues 3

4. 1. Overall growth 4

5. 5 Cleantech companies in Israel by year of establishment

6. 6

7. 2 Sub-sectors within the cleantech industry 7

8. Sub-sectors within the cleantech industry 8

9. 9

10. 3. Evolutionary Stages of Israeli cleantech companies 10

11. Evolutionary stages Seed stage Research and Development (R&D) stage Initial Revenue stage Revenue Growth 11

12. 12

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14. 4. Company size 14

15. Company size 15

16. 16

17. 5. Ownership, Capital raised and Annual revenues 17

18. 18 Average capital raised by cleantech companies by sub- sector (in millions of US$), 2007-2008

19. Average revenue in 2008 of cleantech companies by sub-sector (in millions of US $) 19

20. The Israeli Cleantech Study To propose a complementary, genealogical approach to the traditional clusters approach of industrial sectors’ evolution To explore genesis events and environmental characteristics that shape the entrepreneurial culture and strategy of the cleantech industry along time? To investigate how and why cleantech firms in the different sub sectors (energy, water, agriculture, environment, material) evolve? To study the origin of different founding models of the Israeli cleantech firms, and their relations with existing clusters

21. 21 enealogy Genealogy enealogy is a record of descent or linage of a group from its ancestors to the recent generation. 1.Genealogy is a record of descent or linage of a group from its ancestors to the recent generation. 2. Each genealogy is originated from founding parents which started the entire genealogy. 3. The progenies’ birth origin is diverse. 4.It reflects the degree of association and proximity within a network of relationships along time, characterized by path dependent relationships among firms along a lineage system. 5.The evolutionary trajectory of organizational genealogy is influenced by its member affinity, mainly parent-progenies relations (Phillips, 2000; 2005).

22. enealogy, ITC sector ( Example of Genealogy, ITC sector ( RAD- Founded: 1981)

23. The Israeli Cleantech sample 121 companies from 419 28.87% 174 entrepreneurs from 721 24.13 % Average entrepreneurs par company 1.43 Max number of entrepreneurs 5 Min number of entrepreneurs 1 s.t 0.8

24. Networks of cleantech sub-sectors Energy Environment Agriculture Materials Water 24

26. Origins of founders Hi tech Academy Biotech Cleantech Energy Industry IDF 26

27. Origins of founders Energy Water Agriculture Environment Materials Hi tech Academy 27

28. EntrepreneurspercentageSector 4727.01% Hi tech 4626.44% Academy 126.90% Biotech 116.32% Energy Industry 95.17% IDF 84.60% Cleantech 52.87% Agriculture 52.87% Israeli defense industries 52.87% Vanture Capital 42.30% Engineering 31.72% Banking 31.72% Medical devices

29. EntrepreneurspercentageSector 21.15% Counselling 21.15% Environmental Services industry 21.15% Government 21.15% Investment 10.57% Architecture & Planning industry 10.57% Food industry 10.57% Law 10.57% Low tech 10.57% media 10.57% Municipal 10.57% Outsourcing industry 10.57% Shipping 174100% sum