Israel: A START-UP COUNTRY

by Meszár Tárik

Recently published data from the Israel Innovation Authority shows that the country is a "start-up nation". US research firm Startup Genome ranked Tel Aviv seventh in its annual survey of the world's best start-up ecosystems.

Among the reasons for start-ups to move to Tel Aviv are tax incentives and preferences for individual investors. Israel's Ministry of Economy also offers wage subsidies for certain groups, such as students and minorities.

Israel's unique society and culture, strong economy, government support and "global-first" market approach are just some of the factors that make Israel's innovation ecosystem one of the most successful in the world. According to Deloitte, other important characteristics of the Israeli ecosystem include innovation, a strong R&D capacity, skilled workforce, government support and the investment law which allows foreign companies to receive preferential corporate tax rates and investment aid.

One third of Israeli high tech companies, employing 25 per cent of the industry's workforce, are located in Tel Aviv. Jerusalem is mostly home to medium and small high-tech firms, while Haifa is home to mainly large multinational companies. Experts say that the expansion of high-tech industry is in the national, social and business interest. The development of smart industry - not only in the central cities - will promote the State of Israel, strengthen its financial position and place it alongside the world's leading countries.

The author is a researcher at the Eurasia Center of John von Neumann University

Source: World Bank, Graphic: Alexandra Érsek-Csanádi