Start-up Nation
Posted: Tue Apr 12, 2011 2:43 pm
At roughly 8000 sq. miles, Israel's size would rank about 48th smallest among America's states, beating out Connecticut, Delaware, and Rhode Island. Israel's population (~7 m.) is roughly the size of the state of Washington. Israel's security for the past 60 years has been constantly threatened (6 wars, two intifadas), and it has absorbed millions of refugees from Eastern Europe, Russia, the Arab Middle East, and Africa.
Yet Israel has the highest density of start-ups in the world, one for every 1844 Israelis, and more Israeli companies are listed on NASDAQ than are companies from the entire European continent. In 2008, per capita venture capital investment in Israel was 2.5 times more than the US, 30 than Europe, 80 than China, and 350 than India. The amount of actual venture capital investment in Israel was the same as in Great Britain and as in France and Germany combined. Israel is the world leader in the percent of economy spent on R & D. It is difficult to find a major high-tech company that does not have an r&d center in Israel.
Start-Up Nation explains how this came to be. The authors find the answer to be a combination of a military culture based on risk-taking, decentralized decision-making, intense competition, and reliance on technology; a national personality that is combative and irreverent (think IronGarm); open immigration; government involvement in venture capital and promoting companies through networking;a supportive diaspora; and a fearlessness in business.
The book is easy to read and absorbing. My hunch is that anyone who's served in the military will find the discussions of how Israel's military differs from US, and how Israel's military produces so many entrepreneurs, to be fascinating.
Yet Israel has the highest density of start-ups in the world, one for every 1844 Israelis, and more Israeli companies are listed on NASDAQ than are companies from the entire European continent. In 2008, per capita venture capital investment in Israel was 2.5 times more than the US, 30 than Europe, 80 than China, and 350 than India. The amount of actual venture capital investment in Israel was the same as in Great Britain and as in France and Germany combined. Israel is the world leader in the percent of economy spent on R & D. It is difficult to find a major high-tech company that does not have an r&d center in Israel.
Start-Up Nation explains how this came to be. The authors find the answer to be a combination of a military culture based on risk-taking, decentralized decision-making, intense competition, and reliance on technology; a national personality that is combative and irreverent (think IronGarm); open immigration; government involvement in venture capital and promoting companies through networking;a supportive diaspora; and a fearlessness in business.
The book is easy to read and absorbing. My hunch is that anyone who's served in the military will find the discussions of how Israel's military differs from US, and how Israel's military produces so many entrepreneurs, to be fascinating.
