The document provides an overview of Israel's economy and trade promotion efforts. It highlights Israel's competitive advantages in areas like innovation and technology. Statistics are given showing Israel's strong GDP growth and exports, especially in technology sectors. Israel has free trade agreements in place with countries around the world. The government provides economic incentives for research and development through organizations like the Office of the Chief Scientist. Multinational companies have established large research and development centers in Israel to take advantage of the business environment and workforce.

1. Promoting Israel’s Trade Globally
An Overview of the Israeli Economy
Ari Rokni
Director of Business & Trade Development
December 7, 2012

2. Welcome to Israel

3. Israel’s Competitive Edge
1st in the world for flexibility and adaptability
1st in the world for scientific research
1st in the world for entrepreneurship
1st in the world for information technology skills
1st in the world for expenditure on R&D (as % of GDP)
2nd in the world for innovative capacity
2nd in the world for venture capital
4th in the world in utility patents per million population

4. Israel’s Main Economic Indicators
Criteria 2006 2007 2008 2009 2010 2011
GDP (current prices in
144.0B$ 164.1B$ 191.8B$ 193.1B$ 204.6B$ 214.2B$
$B)*
GDP Real Growth Rate
5.2% 5.4% 4.0% 0.7% 4.8% 4.7%
(%)
GDP per Capita (PPP)** 24,271$ 26,226$ 27,355$ 27,054$ 29,602$ $31,005**
GDP per Capita Growth
Rate 3.3% 3.5% 2.1% -1.1% 2.9% 2.8%
(%, Current prices)
Exports 62.6B$ 71.2B$ 80.4B$ 67.9B$ 87.7B$ 91.9B$
(Goods & Services)(As %of
(43.5%) (43.4%) (40.3%) (30%) (42.9%) (42.9%)
GDP)
Imports 62.2B$ 73.5B$ 84.3B$ 63.1B$ 82.3B$
(Goods & Services)(As %of 91.0B$
(43.2%) (45.1%) (42.2%) (29%) (40.2%)
GDP)
Unemployment Rate 8.4% 7.3% 6.1% 7.4% 6.6% 5.7%
Source: Investment Promotion Center
**Estimated

5. Israel’s International Trade - 2011
Export of Goods 91.9 Billion $
Imports of Goods 91.0 Billion $
(Using a public exchange rate of 1USD=3.6NIS (2011 average*

6. Israel’s Free Trade Agreements
Existing: Under
EU Examination:
USA India
EFTA South Korea
Turkey Chile
Mexico Ukraine
Canada
MERCOSUR
63% of Israel’s 6% of Israel’s
Trade in Trade in 2009
2009

7. Main Trading Items
Israeli Exports
Israeli Imports

8. Key Industries

9. Global Center for R&D
Company No. of Employees Sector
Intel 5,400 Semiconductors
)HP- (Indigo & Mercury 5,000 Capital Equip
IBM 1,100 Computing Equip
Cisco 1,000 Software
Motorola 1,000 Telecom
Applied Materials 1,000 .Capital Equip
SAP 800 Software
Freescale 570 Semiconductors
Microsoft 600 Software
Samsung 100 Semiconductors

10. Multinationals in Israel
• Microsoft built its first R&D facility outside the US
in Israel
• Veolia partnered to operate one of the largest RO
Desalination plant in the world.
• Cisco built its first R&D facility outside the US in
Israel
• Motorola’s Israel facility is the company’s largest
development center worldwide.
• IBM chose Israel for its first VC investment outside
of the US
• Intel has 4 R&D facilities and 2 manufacturing
centers in Israel, employing 7,000 Israelis
• Google opened 2 R&D centers in Israel

11. Economic Incentives
Office of the Chief Scientist (OCS)
• Global Enterprise R&D Cooperation Framework
– Joint R&D projects between MNCs and Israeli companies, authorized by the OCS,
could be entitled to financial assistance with the Israeli company’s R&D approved
costs.
• BIRD Foundation (Israel-US Binational Industrial Research and Development)
– Offers conditional grants for joint development projects on a risk-sharing basis.
BIRD funds up to 50% of each company's R&D expenses associated with the joint
project.
• Technology Incubator Program
– Up to 85% of early stage project costs
• Investment
– Offers tax benefits for 10 years and investment grants to foreign companies

12. Matchmaking & Access to the Israeli Industry
• America-Israel Chamber of Commerce (Chicago)
• Federation of Israeli Chambers of Commerce (Israel)
• Israel-America Chamber of Commerce (Israel)
• Israel Export & International Cooperation Institute (Israel)
• Government of Israel Economic Mission to the Midwest

13. Thank You