Despite its diminutive size and population, Israel has more companies listed on the NASDAQ than any country outside of North America and more technology companies than anyplace outside California. Israel has the third highest number of patents in the world and ranks third in the world in terms of the quality of basic research.
Many major multi-nationals have an established presence in Israel, including: HP, Microsoft, Intel, IBM, Siemens, SAP, Philips, TimeWarner, Sony, Cisco, and more. Many others are involved in Mergers and Acquisitions (M&As) with Israeli companies. In fact, foreign investments in Israel have rocketed from $600 million in 1993 to about $21 billion in 2006.
What are some of the characteristics that make Israel such a hot bed of new technology and investment opportunities?
1. A highly-educated populace:
§ The highest ratio in the world of university degrees and academic publications to population
§ The world’s greatest per capita number of engineers, scientists and doctors.
2. A highly-motivated and resourceful workforce:
§ A multilingual population with cultural, historic and business ties to almost every other nation.
§ High productivity: In computer science, Israel ranks
2nd in the world in productivity, in chemistry, fourth, in molecular biology, 3rd; in biology and biochemistry, 5th; and in physics, 2nd.
§ A unique combination of culture, skill and initiative that promotes adaptability, breakthrough technologies and quick time-to-market solutions.
3. Modern infrastructure and services required to conduct
business efficiently and effectively.
4. Ongoing internal economic growth in 2006 was 5.1% -
higher than the 2.6 percent average growth in the 30
member countries of the OECD. The Bank of Israel
predicts that the Israeli economy will grow by an
impressive 5.1% in 2007
5. Favorable gov’t policies:
§ A wide range of investor incentives and benefits in
industry, tourism and real estate including
government R&D funding, investment grants of up to
24 percent of tangible fixed assets, reduced tax
rates, tax exemptions and other tax related
benefits.
6. International agreements:
§ Israel has an extensive network of Free Trade
Agreements, industrial R&D cooperation programs
international agreements and double taxation
avoidance treaties with countries throughout North
America, Europe and Asia.