Israel seems to be becoming the new standard for high-tech start-ups. 500 start-ups a year are created every year in Israel. Management consultant McKinsey reports that Internet-related activities represent 6.5% of Israel’s GDP, or US$ 12.6 billion. McKinsey also states that the web economy has created 120,000 jobs, accounting for 4% of the country’s workforce. Most Internet and technology giants have set up research and development centers in Israel, including names like Microsoft, Intel, Google, IBM, and Philips.
David Kadouch, product manager at Google Israel, states,
Israel is the country with the most engineers in its population, and it ranks second behind the United States in the number of companies listed on Nasdaq….It’s really a second Silicon Valley. Besides the multinationals, all the major American investment funds are present….The scientific community is very active, there is plenty of manpower and especially an entrepreneurial culture. There is a huge ecosystem around high tech, and what is fundamental is that here we think global.”
Technion, Israel’s prestigious technological university, has played a large role in this technology advancement. Technion campus has 19 schools with 12,000 students. It has trained 70% of the country’s current engineers and 80 percent of the executives of Israeli companies listed on Nasdaq.