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THE WORLD’S TECHNOLOGICAL
GIANTS TURN TO ISRAEL
Internationally, Israel is recognized for its novel government apparatus that supports the
creative energy of its entrepreneurs and innovators. In turn, this governmental support
network fosters a spirit of invention, generating interest in Israeli technologies and solutions
from notable international companies, many of which go on to develop their leading products
in Israel.
A MODEL FOR HIGH-TECH INCUBATION
The Israeli government, through the Ministry of Economy, was the first international
government to appoint a Chief Scientist to encourage and support industrial research and
development. The government, much like a modern-day technological incubator for startups,
provided grants of 50-80% of the outlay needed to establish companies in new sectors,
without requiring shareholding or management agreements.
One of the first companies to receive funding was Israel Aircraft Industries, a private
company founded by former President Shimon Peres and Al Schwimmer that took on aircraft
innovation in Israel. Any startup entrepreneur will tell you that even today such flexible and
open conditions for incubation grants are rare. In fact, since the first companies emerged
from the government incubator programs in 1993, 61% have secured follow-on funding and
40% remain active.
The Israeli government has also established the National Authority for Technological
Innovation, a body that shapes the government’s innovation initiatives and seeks to ensure
that Israel continues to foster an innovative economy into the future.
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