Invest In Israel Where Breakthroughs Happen - Ministry of Industry, Trade & Labor Investment Promotion Center
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State of Israel
Ministry of Industry, Trade & Labor
Investment Promotion Center
Invest In Israel
Where Breakthroughs Happen
Main Economic Indicators
Criteria 2006 2007 2008 2009 2010
GDP (current prices in $B)* 144.0 164.1 191.8 193.1 202.0
GDP Real Growth Rate (%) 5.2% 5.4% 4.0% 0.7% 4.6%
GDP per Capita
(PPP adjusted)** $24,271 $27,395 $28,473 $28,160 $28,920
GDP per Capita Growth Rate
3.3% 3.5% 2.1% -1.1% 2.7%
(%, Current prices)
Exports (Goods & Services)** $B* 62.6 71.2 80.4 70.35 81.8
(As Percentage of GDP) (43.5%) (43.4%) (40.3%) (36%) (40%)
Imports (Goods & Services)** $B* 62.2 74.0 84.1 72.3 81.2
(As Percentage of GDP) (43.2%) (45.1%) (42.2%) (37.4%) (40%)
Unemployment Rate (%) 8.4% 7.3% 6.1% 7.5% 6.6%
•*Using public exchange rate.
** In current prices Source: Central Bureau of Statistics
Main Economic Indicators (Graphs)
Inflation (%) (Exl. Housing) Unemployment (%)
5
8
4
3 6
2 4
1 2
0 0
Export ($US Billion) GDP Growth Rate (%)
100 6
4
80
2
0
60 Source: Bank of Israel Data
Sources: Ministry of Finance and CBS
Israel - Inward & Outward Foreign Direct Investment
(Millions of US$)
Inward FDI Outward FDI Total Inward investments
30,000
25,000
20,000
15,000
10,000
5,000
0
Source: Bank of IsraelMultinationals…
Microsoft built in Israel their first R&D facility
outside the US.
Cisco built in Israel their first R&D facility
outside the US.
Motorola’s Israel facility is the company’s
largest development center worldwide.
IBM chose Israel for its first VC investment
outside of the US
Intel has 4 R&D facilities and 2 manufacturing
centers in Israel, employing 7,000 Israelis
Google opened two R&D centers in IsraelR&D Centers In Israel
Haifa Region
Northern Region
Tel Aviv Region Jerusalem Region
Southern Region
Maps: WikipediaR&D Centers of Leading Foreign Companies Company No. of R&D Employees Sector Intel 7,000 Semiconductors HP- (Indigo & Mercury) ~5,000 Capital Equip IBM 1,100 Computing Equip Cisco 1,000 Software Motorola 1,000 Telecom Applied Materials 1,000 Capital Equip. SAP 800 Software Freescale 570 Semiconductors Microsoft 600 Software GE (Healthcare) 400 Medical Equip Over 240 foreign companies have established R&D centers in Israel Over 50,000 personnel are employed in these R&D centers in Israel
Intel – Success Story
Over 7000 employees Israeli Centers Developments Include:
4 active R&D Facilities
2 Manufacturing Centers
1st R&D P. Tikva Acquired Acquired
Center R&D DSPC – Envara –
Outside Center $1.6 Bil 40 Mil
USA
opened Fab 18 manufacturing Acquired Acquired
in Haifa center Opened in Mobilian Oplus –
Kiryat-Get – $1.6 Bill $100 Mil
1985 1999 2001 2004 2005 2008
1st Manufacturing Yakum Jerusalem Yokneam Fab28 m. plant
center outside USA R&D R&D R&D Opened in Kiryat
opened in Jerusalem Center Center Center Gat – $3.5 BillMicrosoft – Success Story
Over 500 employees Herzelia R&D Center is one
Over US$ 700 million only out of 3 Strategic Centers.
in M&A during 2002-2008 Focus: Internet, Security
1st Branch Panorama Maximal Gteko
Outside USA - Innovative
3 employees Intelligence Secured
Dimensions
Invest in Pelican
Orion Fund Security Yadata,
Kidaro
1991 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2008
Haifa R&D Diligent
Whale
Center Technologies
Peach Networks Communications
Herzelia
R&D Ctr.IBM – Success Story
Over 2000 employees in Haifa,
Rehovot, and Jerusalem
From 2001-2009:IBM made 23
acquisitions
GTU-Global Technology Unit
Acquired
Opens Acquired Unicorn Solutions
1st Branch Ubique $7.5 million
In 1950 $15 million
Acquired Acquired Acquired Acquired
Iphrase XIV FilesX Guardium
Technology $300 million $80 million $225 million
1972 1998 2005 2006 2007 2008 2009
Acquired Acquired Acquired
Opens Haifa Watchfire Diligent Storwize
Development Lab, an Converts it to R&D Technologies $140 million
IBM scientific center Software center $165 millionOracle – Success Story
Since 2005, 28 start-up’s investments.
4 R&D centers , over 400 employees.
Integration of Sun’s R&D center in Israel.
Oracle starts Oracle acquires
operation in Demantra for
Israel. $41 Millions.
Oracle acquires
Oracle acquires Convergin for $85
Prosight Inc.
Millions.
operation in Israel.
1996 2005 2006 2008 2009
Yadata and Oblicore,
Oracle signed an MNC’s owned by Oracle, are Oracle aquires
agreement with the OCS to acquired by CA and HyperRoll Ltd.
Oracle establish its
establish a technological 1st R&D center in Micorsoft in a total of
support center. Israel. $50 Millions.Significant Selected Mergers & Acquisitions
Acquirer Amount Sector Company Date
HP 4500 Mil ICT Mercury Jul 2006
B. Hathaway 4000 Mil Metal Cutting Iscar May 2006
Sandisk Corp 1550 Mil ICT M-System Jul 2006
CSR Plc 679 Mil Semiconductors Zoran Feb 2011
DG FastChannel 517 Mil ICT MediaMind Technologies Jun 2011
Sun Pharma 454 Mil Pharma Taro May 2007
J&J 438 Mil Life Sciences Omrix Nov 2008
Siemens 418 Mil Clean Energy Solel Oct 2009
S1 Corp 325 Mil Financial Software Fundtech Jun 2011
Medtronic 325 Mil Medical Device Ventor Feb 2009
Broadcom 313 Mil Semiconductors Provigent Mar 2011NASDAQ Non US Listed Companies - Selected Countries
90
80
70
60
50
40
30
20
10
0
Source: NASDAQ (10/2011). Analysis: Invest in IsraelIsrael Hi-Tech Cluster
“Solid” Infrastructure
Government Support Incubators
Experienced
2nd time
entrepreneurs
Defense
Availability of
University Global Existing
Computer Technical Corporate
Hi-tech Technology
Science People & R&D
Infrastructure
Students Management Companies
Expertise
Leading
Academic
Institutions
Foreign
& Research
Technology
Firms Corporate
Spin-
Offs
Seasoned VC Community
Entrepreneurial
Culture
Immigration
“Soft” Infrastructure
Source: IVAV. Capital Raised by Israeli Hi-Tech Companies
2500
Foreign
2000 Israeli
Million US$
1500
1000
500
0
02' 03' 04' 05` 06' 07' 08' 09' 10'
Source: IVC-ONLINEIsraeli Breakthroughs – Selected Examples
Given Imaging – First ingestible video camera used to view
the small intestine and diagnose disorders
Intel’s Sandy Bridge, Core 2 Duo, and Centrino
M System’s Disk on Key and Disk on Chip flash memory
GE Healthcare’s portable cardiac ultrasound system
The Phillips Brilliance CT Scanner
IP Telephony invented by founders of Vocal Tec
Argo Medical – First commercially available upright walking
technology enabling wheelchair users to walk and climb stairsIsrael’s Competitive Edge – IMD World Report 2011
Country Rank 1st 2nd 3rd 4th
BUSINESS EXPENDITURE ON R&D Israel Sweden Japan Finland
( % GDP)
TOTAL EXPENDITURE ON R&D Israel Sweden Finland Japan
( % GDP)
SKILLED LABOR Israel Denmark Iceland Ireland
ENTREPRENEURSHIP OF MANAGERS Malaysia Israel Taiwan Hong Kong
FLEXIBILITY AND ADAPTABILITY OF Iceland
PEOPLE Israel Hong Kong Brazil
VENTURE CAPITAL AVAILABILITY Hong Kong Malaysia Israel Taiwan
Israel Ranks 17
Source: IMD World Competitiveness Yearbook - 2011Israel’s innovative ranking
Source:
Economist Intelligence Unit, 2009The Global Competitiveness Report 2010-2011
(World Economic Forum)
Company spending on R&D
Utility Patents per Million
“Israel ranks 24th in this year’s
GCI, up three positions
after having suffered losses in
competitiveness over
the past years. The country’s main
strength remains the
excellent—and improving—
capacity for innovation (6th), Capacity of Innovation
which rests not only on highly
innovative businesses but
also on the availability of high-
quality research institutions Quality of scientific research
institutions
and is reflected in a high number of
patents.”
World Economic Forum
The Global Competitiveness Report –The Global Competitiveness Report 2011-2012
(World Economic Forum)
Capacity of Innovation
“Israel ranks 22th in this year’s
GCI, up two positions
after having suffered losses in
competitiveness over
the past years. The country’s main
strength remains the
excellent—and improving—
capacity for innovation (6th),
which rests not only on highly
innovative businesses but Venture Capital
also on the availability of high-
quality research institutions
and is reflected in a high number of
patents.” Investor Protection
World Economic Forum
The Global Competitiveness Report –Shanghai Jiao Tong University –
Academic Ranking of World Universities 2011
Computer Science Mathematics Economics
Rank: 11 Rank: 22 Rank: 51-75
Rank: 15 Rank: 32 Rank: 51-75
Rank: 26 Rank: 51-75
Rank: 28
shanghairanking.com - 2011Government Support
The Law for the Encouragement of Capital Investments:
Competitive grant program
Tax exemption path for manufacturing facilities
The Law for the Encouragement of Industrial R&D
Tax exemption for venture capital investment
Promoting R&D Centers in the Periphery (Negev & Galilee)
Special Program - R&D centers for the financial sector
The Global Enterprise R&D Cooperation Framework
Israel NewTech – Supporting Israel’s Cleantech IndustryFocus - National Energy and Water Program Established in 2006, the program aims at promoting Israel’s Water and Renewable Energy Sector. Strengthening human capital Promoting research and development Supporting local implementations Increasing exports and investments
Summary Israel is a center of innovation and technological excellence Israel is a leading entrepreneurial society Israel enjoys an excellent track record in breakthrough discoveries and innovations Future results are expected to improve due to the maturity of the market Foreign companies can cost effectively conduct cutting edge research in Israel Israel’s government and policies strongly support investment and economic growth
Bubbles "Israel – a reservoir
of innovation that
will advance our
competitiveness."
"Israel is an ." Professor Eric
incredible Reinhart, President
opportunity for us. It of Siemens Medical "The landscape
provides a growth
(in Israel) provides the
"What is exciting to me engine for innovation perfect environment for
about Israel is that it is for us." researching and developing
the most Richard Nottenburg, water technologies in 'real-
entrepreneurial and Motorola's executive world' conditions and then
spirited place I have
VP chief strategy marketing and selling them
come across outside "We were attracted by globally"
the U.S." the outstanding Dr. Roger Radke, CEO of
Simon Levene, Yahoo's research and the Water Technologies
managing director of researchers here." Division of Siemens
corporate development, David M. Bowser,
Johnson & Johnson,
VP, Corporate Office of
Science and
"It's no Technology
exaggeration to say
that the kind of
"The quantity and
innovation going on quality of software
in Israel is critical to engineers in Israel
"Some Americans
the future of the made it logical that
have come to the
technology Middle East looking we would open a
business. for oil. We came to R&D center here at
Bill Gates, the Middle East some point."
Founder Microsoft looking for brains, Dennis Woodside,
and we stopped at EMEA Manager,
Israel." Google
Warren Buffett,
Bershire HathawayState of Israel
Ministry of Industry, Trade & Labor
Investment Promotion Center
5 Bank Israel St., Kiryat Ben-Gurion Jerusalem, Israel
www.investinisrael.gov.il investinisrael@moital.gov.il
Tel: +972-2-6662607 Fax:+972-2-6662983You can also read
