Friday, October 15, 2010

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Hi-Tech Israel

110 Israel’s can-do must-do whatever it takes attitude combined with an increasing hi-tech education and the past influx of tens of thousands of highly skilled highly educated Russian Jewish engineers presented Israel as a center of high technology possibilities for the world.

Some smart economic moves opened the door for the infusion of venture capital, and the Israeli entrepreneurs took off.  Young men fresh out of an army cyber-warfare or electronic warfare unit bring their skills and ideas to the ever expanding Israeli hi-tech research centers.

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And while US corporations are downsizing and outsourcing, the innovative Israeli corporations (filled with people who expect to get things done) are expanding, creating new ways of doing things, and accomplishing major corporate projects in 1/3 the time it takes the U.S. corporation.

Of course this is the new-line Israeli economy.  The government still operates will remarkable inefficiency and bureaucracy.  Old line companies and monopolies hold their positions are offer little service or products for high prices.  Yet the government has been introducing competition more and more, and with competition comes the need to improve or be overrun by the competitors.

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In many ways Israel resembles Silicon Valley of 20 years ago, and not just in the palm trees.  The government has wisely allocated land for industrial parks and savvy developers have built business centers where the innovative companies cluster together.  That clustering and Israel’s small physical size mean practically every high tech company in the country can act as a partner, resource, or customer for every other company.  (Pictured, Kiryat Arie industrial park in Petach Tikvah’s newest building cluster.)

It’s an amazing flip of positions as the US and the EU have created regulatory environments increasingly discouraging business start-ups, research and development investment, even hiring, that Israel has progressively loosened a regulatory environment that prevented those in the past.

As it has Israel now offers more hi-tech entrepreneurial opportunities than the U.S. 

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