• Like
Israel's competitive advantage
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

Israel's competitive advantage

  • 930 views
Published

My friend Asaf Luxemburg is behind these great figures and stats, share with your peers …

My friend Asaf Luxemburg is behind these great figures and stats, share with your peers

Sharon Weshler
Investment Banker
Israel

Published in Economy & Finance , Business
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
No Downloads

Views

Total Views
930
On SlideShare
0
From Embeds
0
Number of Embeds
2

Actions

Shares
Downloads
32
Comments
0
Likes
2

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide
  • תעדוף
  • הסקר בוצע בתאריכים 30 בנובמבר – 8 בדצמבר 2009, בקרב 325 קרנות הון סיכון ברחבי ארה " ב . יש לזכור שמרבית קרנות ההון סיכון בישראל אינן קרנות ישראליות .
  • הסקר בוצע בתאריכים 30 בנובמבר – 8 בדצמבר 2009, בקרב 325 קרנות הון סיכון ברחבי ארה " ב . יש לזכור שמרבית קרנות ההון סיכון בישראל אינן קרנות ישראליות .

Transcript

  • 1. Promoting Israeli High-Tech Industries 2011 - 2012 Competitive Advantage National Plan משרד האוצר Ministry of Finance
  • 2. ~ Review
    • Program Highlights
    • Basic information
    • Strengths
    • Weaknesses
    ~ The Program
    • Tool box
    ~ Summary ~ Appendices
  • 3. Program Highlights “ Israel related” concept Integrated Program No Silver Bullet Continuous Process
  • 4. High-Tech Industries Software / Hardware Nanotechnology Biotechnology Clean-Tech Space Industry Life Sciences Innovation Centers Start-ups Large companies Security Industries Semiconductors Communications Internet
  • 5. Basic Information Israel’s High-Tech industries
    • 41.2% of total exports in 2009
    • 270,000 employees in 2008.
    • c. 14% of total employees in Israel’s business sector
    • 15% of Israel’s GDP
  • 6. Industry’s Strengths
  • 7. Signs of Weaknesses
  • 8. THERE IS A SIGNIFICANT RISK OF IMPAIRMENT TO THE CONTINUED GROWTH OF THE INDUSTRY IN ISRAEL
  • 9. ~ Review
    • Program Highlights
    • Basic information
    • Strengths
    • Weaknesses
    ~ The Program
    • Tool box
    ~ Summary ~ Appendices
  • 10. Tool Box
    • Covers all phases of industry’s growth
    • Uses a wide variety of additional tools
  • 11. Industry Flow chart
  • 12. Industry and Academic Partnership
    • The Chief Scientist formulated a set of designated tools to enhance the relationships between Academy & Industry (marketing, financing, business training, etc.)
    • Supporting basic research that has the potential to be commercialized
    • Expanding existing programs ("Magneton", "Nofar," etc.)
    Tools 1-2 | Industry and Academic Partnership | Israeli scientists abroad
  • 13.
      • The Problem :
        • Loss of human capital as Israeli scientists move abroad (“brain drain”)
      • Goal :
        • To encourage Israeli scientists and entrepreneurs, that have the power to influence and promote the high-tech industries in Israel, to return home to Israel
      • Solution :
        • Tax deductions on income from royalties, stemming from research abroad, to scientists who have returned to Israel and commercialized the product
    Israeli Scientists abroad Tools 1-2 | Industry and Academic Partnership | Israeli scientists abroad
  • 14.
      • Changing the R & D Act regarding the transfer and sale of franchise knowledge
        • Reducing uncertainty for investors
      • Improving the effectiveness of the Technological Incubators program
        • Matching the program to the industry's current characteristics
        • Changing the loan repayment system of the incubator franchises
        • Creating incentives to the franchises to reward excellence
    Updating the Chief Scientist’s Programs Tools 3-4 | Update of Chief Scientist Programs | R&D for the global financial industry
  • 15. Developing R&D Centers for Global Financial Industries
      • The Problem :
      • Israeli high-tech is marginal in the global financial industry’s R&D, the biggest consumer of technology worldwide
      • Solution :
      • Government incentive to multinational financial entities to establish R&D centers in Israel
      • Description:
      • New program under the Chief Scientist Office to encourage R&D centers for global financial technology
    Tools 3-4 | Update of Chief Scientist Programs | R&D for the global financial industry
  • 16.
      • The Problem:
      • Over dependence on ICT and a lack of investment and limited knowledge in the bio-tech and Life Science area
      • Solution:
      • Significant encouragement for the bio-tech industry in Israel
      • Description:
      • 4 public-private funds for bio tech. Government’s $104m to be leveraged with a minimum of $304m private funds.
      • Status:
      • Status: 4 managers were selected for the funds in April 2010.
    Development for Bio-Tech Industry Tools 5-8 | Bio-Tech | Early stage capital | Institutional capital | Growing Large Companies
  • 17.
      • The Problem:
      • Not enough money is raised by SEED-stage companies. SEED-stage companies raised approximately $39 million in 2009, a decrease of about 56% compared to 2008 .
      • Solution:
      • Allowing investment in an R&D-focused company to be reported as an expense on “day one”
      • Description:
      • Deducting this investment as an expense against income from all sources, spread over three years
      • Incentives for Early Stage investments
    Tools 5-8 | Bio-Tech | Early stage capital | Institutional capital | Growing Large Companies
  • 18.
      • The Problem:
      • There is a dramatic decline in the ability to raise capital in the Venture Capital industry in Israel from local Pension Funds
      • The percentage of Israeli institutional investors investing domestically is significantly lower than abroad, 0.2% vs. 2%
      • Solution:
      • The State will participate in the investment risk of Israeli institutional investors
      • Status:
      • The State has a budgetary commitment of about NIS 200 million for this program
      • Israeli Institutional Investment
    Tools 5-8 | Bio-Tech | Early stage capital | Institutional capital | Growing Large Companies
  • 19.
      • Encouraging high-tech Israeli companies to acquire small Israeli high-tech companies
      • Encouraging the creation of clusters
      • Allowing the amortization of goodwill for tax purposes
      • Promoting M&A activity
    Tools 5-8 | Bio-Tech | Early stage capital | Institutional capital | Growing Large Companies
  • 20.
    • The Problem:
        • Low rate of Arab minority and Ultra-orthodox employees in the high-tech industries
    • Solution:
        • Incentives for high-tech employers to employ underrepresented communities
    • Description:
        • Adjusting the Ministry of Industry’s support programs, which subsidize the cost of salaries for the high-tech industry
        • Examining other options to encourage employment via the Chief Scientist’s programs
      • Minorities & Industry
      • Tools 6-9 | Encouraging Underrepresented Communities | Dual R&D | CIO | Science / Technology Education
  • 21.
      • The government purchases more than a billion shekels worth of technology and services each year from the high-tech industry
      • The CIO will see all the needs of the government, set strategy and work to create standardized tools and infrastructure
      • The CIO will have direct responsibility to initiate, lead and operate all horizontal projects for the government
      • The CIO will create a supportive environment to promote innovation in Israeli industry
      • Appointment of a Government CIO
      • Tools 6-9 | Encouraging Underrepresented Communities | Dual R&D | CIO | Science / Technology Education
  • 22. Strengthening Technological Education Industry Ministry of Finance Ministry of Education
      • Tools 6-9 | Encouraging Underrepresented Communities | Dual R&D | CIO | Science / Technology Education
    Structured combination of high-tech industry retirees /young people Retraining program by the Ministry of Education for teaching technological subjects Shortage of teachers in technological education
  • 23. Governmental Focus on R & D
    • The Problem:
    • No preference or system for integrated national R&D efforts
    • The Solution:
    • a body responsible for: recommendations for research focus areas, formulating an action plan and coordinating between governmental bodies
    • Members of the Body: various government bodies that are in charge of investment in research and development
    Clean-Tech? Bio-Tech? Homeland Security ?
      • Tools 10-11 | Bringing Back Israeli Scientists | Governmental Focus on R&D
  • 24. ~ Review
    • Program Highlights
    • High-tech Industries
    • Strengths
    • Signs of Weakness
    ~ The Program
    • Tool box
    ~ Summary ~ Appendices
  • 25.  
  • 26. THANK YOU
  • 27. ~ Review
    • Program Highlights
    • High-tech Industries
    • Strengths
    • Signs of Weakness
    ~ The Program
    • Tool box
    ~ Summary ~ Appendices
  • 28. Emerging markets Developed economies Exports of High-Tech Industries as a % of Exports In 2009, the share of exports of high-tech industries in Israel was 41.2%
  • 29. Export of High-tech Industries Average Growth Rate 2004 - 2006 Source: EuroStat , CBS . Developed countries Emerging mar kets
  • 30. High-Tech Employees by Sub-Branches 2008, thousands Source: Central Bureau of Statistics, Manpower Survey 85% 15%
  • 31. Source: USPTO . Innovative Patents Registered by Emerging Markets in the U.S. in 2008 ( Patents per million people )
  • 32. U.S. Patent Applications by Country of Source 2008
  • 33. Source: CBS. University Degrees by Field of Study 1987-2008
  • 34. Israeli Requests for Patents in the U.S. From 1995-2008
  • 35. Students Studying Abroad Vs. Students Studying Domestically, 2002-2007 Source : OECD - education at glance.
  • 36. Israeli Students in the U.S. After Receiving a Ph.D. (% Staying and Returning) * לפי תוכניותיהם בשנה לאחר קבלת התואר
  • 37. Forecast in Venture Capital Investment Activity in 2010 Source : NVCA.
  • 38. 1% companies 25% employees 5 9% companies 30% employees 90% companies 45% employees Large companies Over 450 employees >$100 M Growth companies Sales >$10 M “ Start-Ups”
    • According to CBS:
      • There are 36 companies with sales greater than $100M
      • There are 12 companies which were established after 1992
      • 4 companies were established after 1995
    Source: IVC. Failure of Large Company Development
  • 39. Source : Gartner. Expenditure on IT by Sector
  • 40.
    • THANK YOU