Controversial Middle Eastern country, Israel has become a breeding ground for startups, inspiring entrepreneurs around the world. Its entrepreneurial culture has led to significant technological advancements, impacting various areas of global society.
Undeniably, there’s something special about Israel. The place has become a source of inspiration – and study – for many researchers from larger, more resource-rich, and less conflict-ridden countries. The question everyone asks is how a nation with 9.3 million inhabitants, only existing for 75 years, surrounded by enemies, in a constant state of war, and lacking natural resources is responsible for some of the world’s greatest innovations.
Carine Bruxel, Executive Vice President at Datum, naturally curious and a tireless learner, visited Israel to understand what makes it so special. Her fifth immersion (Carine has visited Waterloo and Finland. She’s also been to Silicon Valley on two occasions) was the one that caused the deepest transformation. The key insights from her visit will be shared here. Let’s take a look.
Scarcity in Israel driving innovation
Israel’s territory is relatively small, with much of the landscape being desert, and there are few natural resources available, such as water and energy. In a geopolitical context, what the country also lacks is stability. Conflicts with neighbors affect economic development and create challenges in terms of security and trade. So, how can a people living under such circumstances be so innovative?
One possible answer is that Israel developed creativity to compensate for the lack of resources. The water scarcity, for instance, led the country to seek innovative solutions. The result was the creation of desalination and seawater reutilization technologies. Moreover, the lack of fertile land drove the development of precision agriculture, which uses advanced techniques to maximize agricultural production in adverse conditions.
Startup Nation
From one creative solution to another, Israel has become one of the most advanced countries in the fields of science, technology, and innovation, earning the moniker “startup nation”. In 2022, according to a report by StartupBlink, there were over 1,700 startups in Israel (a number that has likely increased since then), averaging one startup for every 5,000 inhabitants. In Canada, a country with a population of 40 million, there are 3,000 startups, according to Made in Canada.
One of Israel’s most successful startups is Waze, founded by Uri Levine, Amir Shinar, and Ehud Shabtai, whose technology revolutionized how we navigate streets and roads. For Israelis, it’s not enough to use technology to optimize processes. The goal is always to disrupt and impact the world through innovation.
The perfect combination for technological innovation
One of the primary drivers of this desire to make a difference through technology is the entrepreneurial ecosystem. The country possesses a combination of key elements that foster entrepreneurship: infrastructure, talent (many encouraged to venture into the tech world from an early age), and deep-pocket investors seeking promising ideas to fund. It was this blend that resulted in companies like Wix, Mobileye, and Check Point.
During her immersion, Carine met Cartev, a startup developing autonomous golf carts using artificial intelligence. “The founder, Eli Doron, told us he didn’t understand autonomous cars but wanted to work on them. So, he brought in people with automotive experience and started in controlled environments due to the risk of accidents, and now he wants to expand. What caught my attention was that Doron is 70 years old. There’s no ageism there! Older people are valued and still have that spark,” Carine said.
Eli Doron and Carine Bruxel
Government also plays its part and understands the importance of investing in research and development. For this reason, a significant portion of its Gross Domestic Product (GDP) is dedicated to these purposes. This investment has resulted in notable advancements in areas like artificial intelligence, biotechnology, and more. Additionally, there are government programs offering financial support and tax incentives for startups and technology companies.
Cyber Supremacy
Israel lives under constant threat and consequently has a highly advanced defense sector. Technological innovations generated in this field have subsequently been adapted for civilian applications, propelling the country’s high-tech sector. For instance, technology developed for military cybersecurity systems is now used to protect companies and governments worldwide. In this way, Israel has become internationally recognized as a leader in the field of cyber security.
Israeli culture also values innovation and the pursuit of knowledge. The local society encourages an entrepreneurial mindset and a willingness to take risks. In the second post about the startup nation, we discussed cultural aspects that make Israel a reference in innovation.
