The New york Times has an inspiring story on the resurgence of Israle’s high-tech industry which had gone into a long slump after the internet bubble of 2000 and the Palestinian uprising. Israel has a rich history of Tech innovations. More than 70 Israeli companies are listed on the Nasdaq - more than any other country outside of the United States. This is the country that gave us the ICQ and many agricultural innovations.
The sector generates about 40 percent of Israel’s total exports, according to government figures. It has a reputation for producing innovative start-up firms that are often incorporated in the United States.
The most recent example of Israel’s re-emergence is Intel’s decision to build a new $3.5 billion chip-making factory in remote Kiryat Gat.
Reasons for the resurgence
The New York Times gives the following pointers which must be required reading for developing countries’ decision makers everywhere:
...Israel’s military has been a leader in adopting new technology, and it works closely with civilian companies.
...Israeli men and women are required to perform military service after high school. Many gain experience in a variety of high-tech systems, which leads directly to future careers.
...Israel’s close ties with the United States have made it a natural choice for young companies searching for investors, stock listings and marketing guidance.
...The Israeli government, meanwhile, has sought to tap the high-tech sector to develop isolated areas such as Kiryat Gat.
...(it)provided substantial subsidies for Intel to build its first plant here. Israel has long been regarded as a high-tax country, but the Israeli government offered Intel a 10 percent tax rate, compared with 35 percent in the United States.
