THIS TINY NATION HAS EMERGED AS THE EPICENTER OF RESEARCH & DEVELOPMENT FOR VARIOUS MULTINATIONAL COMPANIES & IS CONSIDERED THE HOME OF NICHE TECH STARTUPS. HERE'S HOW.
Israel has become the holy grail for American tech giants like Intel, Apple, Microsoft, Google, Facebook and every other upstart. Research and development is the main focus in the 'Silicon Wadi' a coastal strip which is the home to every global tech corporation. The Israeli government has used this as a base for economic development. Science and technology in Israel is one of the country's most developed sectors.Israel spent 4.3% of its gross domestic product (GDP) on civil research and development in 2015, the highest ratio in the world. In 2019,Israel was ranked the world's fifth most innovative country by the Bloomberg Innovation Index. A small nation with a population of just 7.1 million, the country now has more companies listed on the NASDAQ than Europe, Japan, Korea, India, and China combined.! (NASDAQ is a famous stock exchange of America where all major tech companies are listed)
REASON FOR CUTTING EDGE TECH:
1. COLLEGE SYSTEM
Israeli universities like Tel Aviv University & Technion Institute of Technology are amongst the best in the world. They believe in practical skills and empowerment of the entrepreneurial spirit. Thats why many industries commercialize the research of its students & promote them in launching their own startups. The universities funded potential projects which evolved as companies. These companies are later acquired or merged for millions of dollars, a part of which goes to the universities. The same funds are then utilised for enhancing facilities and supporting more projects. Thus a productive cycle has been expanding in magnitude since decades.
UNIVERSITY RANKINGS
2. GOVERNMENT INITIATIVE.
The Israeli government spends 4.2% of its GDP on research & development, the highest in the world as on 2019. The Israeli Government has rightly identified the importance of tech for the economy. So it has introduced a slew of measures like Special economic zone, Grants, It has its own Innovation Authority which provides grants to various start ups on an annual basis. It also has its own Venture capital fund called YOZMA which has invested around millions of dollars till date in partnership with other private players. Their success has attracted hundreds of other capitalists to Israel which has been a backbone of their phenomenal growth.
3. DIVERSITY
Israel is a nation of Jews. After WW2, they were scattered all across the globe due to the holocaust. The first wave of migrants were predominantly such Jews. The second wave was after the disintegration of USSR. This was more important as many scientists and engineers came from the former Soviet republics. Another factor relating to this cultural point is the Israeli spirit of "chutzpah" (audacity). These people are never satisfied with what they have and always strive to improve things.
4. Research & Development
R&D is the base of Israeli Tech. All the major companies of the world have established their own R&D centers. This has enabled innovation, job creation & foreign investment. inside the country. Israel ranks third in the world in university/industry research collaborations and second in R&D expenditures financed by abroad.
5.Focus on military.
Israel is surrounded by enemies from all sides. Such a tense geopolitical situation has made military development of utmost importance. Also it cannot depend on foreign arms supply completely so development of a domestic arms industry is a must. As a result, Israel has a powerful and innovative industry which is based on indigenous advancement and research. This has given an impetus to growth of tech. Also, military service is compulsory for all Israeli citizens (3 for men & 2 for women). Hence, thy learn to face tough challenges from the beginning.
CONCLUSION
In this digital age, Israel has a big advantage by already having such an advanced economy.
Despite geopolitical tensions, scarce resources & a small population, Israel has thrived despite such setbacks and has a stable economy with upward growth trends.
American support has played a big part in Israel's rise be it in the form of arms & ammunition, foreign investment or entry of silicon valley's biggest firms. On the other hand, Israel has acted as a stable American partner in an increasingly volatile middle east.
This advanced tech has helped Israel to defend itself against its Islamic neighbors. In 1967, Israel defeated combined forces of Egypt, Jordan, Syria, Iraq, Saudi Arabia & Kuwait single handedly by virtue of its superior arms and defense system, Thus it has also been able to increase control over its territory and expand it.
The Jerusalem & Palestine question will always dominate Israeli politics as well as policies.
THANKS FOR READING. HOPE YOU LEARNED SOMETHING NEW. STAY SAFE PEOPLE
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