Israel: A START-UP COUNTRY

by Meszár

China to boost spending in 2023 economic revival drive

China’s top economic planner aims to help boost domestic consumption and woo more foreign investors this year as it seeks to revive the country’s Covid-hit economy.

In a People’s Daily interview, Zhao Chenxin, deputy chairman of the National Development and Reform Commission (NDRC), said authorities would align fiscal, monetary, industrial, technology and social policies to promote growth. The government would also give support to previously tightly regulated sectors such as property and internet companies as part of a wider push to increase consumer spending.

Other major players in the East Asian region, such as South Korea and Singapore, are also pursuing a “new capitalism”. One way or another, these countries will have to cope with the (partial) depletion of the growth models they have had so far, and they seem to have the necessary adaptability for this.

Marcell Horváth - The author is the Executive Director for International Relations of the Magyar Nemzeti Bank, Hungary’s central bank Eszter Boros – The author is an expert in the International Relations Directorate of the Magyar Nemzeti Bank

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

GDP per capita (current USD) 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