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Israel is one of the most influential centers of development on the planet. Imagine that in this small and modern country, there are more than 6,000 Israeli startups with a thriving economy that supports all technological sectors based on innovation and development. Consequently, Israel was deserving of the title of “Startup Nation“.

This development in the various economic sectors led to a change in the international companies’ view of the principles of innovation in general, which created new difficulties and opened up prosperous business prospects for startups in Israel.

Here it should be noted that the nature of the technological ecosystem in Israel has a significant role in supporting and meeting the requirements of these companies that aim to reach the global level.

Israel introduced to the world innovations and services used continuously in people’s daily lives, and these products returned considerable revenues to the startups that developed them.

We will mention here the names of international companies that everyone knows. All of these companies saw in Israel a significant investment opportunity for building and developing their future projects. Thus, we find that there are more than 300 multinational companies in Tel Aviv alone, all of which are looking to invest in Israeli startups. We mention from these companies:

Microsoft, Google, Apple, Facebook, Berkshire Hathaway, Intel, IBM, Philips, Toshiba, Motorola, and many more.

In addition to many international companies that have opened development centers for their services and products in Tel Aviv and other Israeli cities.

The most important of these companies are Citibank and Kodak.

However, the question remains: How does Israel maintain the global position of the home of the most successful startups globally, and how does it continue to attract major international companies and huge investments from all over the world to them.

The reasons for this unprecedented success are simple and clear to everyone. They can be summarized as follows:

  • The culture of Israeli society, which is based on ambition and innovation.
  • A strong economy that ranks among the most powerful in the world.
  • Continuous government support for small enterprises and startups alike.

These obvious reasons have made Israel one of the best research and business development centers on the planet. Did you know that in 2016 more than $ 4.8 billion was invested in Israeli startups, and $ 10.02 billion worth of other companies were sold through significant acquisitions?

What supports Israeli startups?

Israeli startups – Creativity and innovation

Israel is the world leader in the number of new companies per capita. More than 2,000 new companies have been established in the past ten years, in addition to 3,500 small and medium-sized startups, cutting-edge organizations, over 60 mega innovation organizations, and 400 global partnerships focused on research and development.

Israeli startups – Scientific research capabilities

Israel is ranked second in the world to invest in scientific research and development. Israel puts around 4.1% of its GDP into research and development, and the average percentage among OECD countries is 2%.

Israeli startups – Human resources

Israel has the most massive rate of individual researchers globally and possibly the highest percentage of university degrees for individuals. Israel also has a first-class educational framework and is among the most advanced educational systems in the world.

Governmental support

Successive Israeli governments have established programs sponsoring technology since the mid-1990s. Today, there are more than 25 centers that care for and support technology startups. The Israeli government supports the work of these companies since their inception.

The government also provides annual stimulus programs worth $ 400 million to support scientific research and help startups develop their services and keep their businesses running.

Flexible economy

Flexibility and diversity in change are widely viewed as fundamental variables that influence business execution. Innovation and adaptability are the fuels of progress in any country, and severe response to changing business situations is essential for startups to thrive to reach the global market.

Israel’s ability to provide immediate support to market demands through hierarchical activity; its real strength is the technology sector that has led to it being called the world’s startup nation.

Recent News & Activity of The tech ecosystem that supports Israeli startups

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