Israel's large concentration of talented and innovative people makes it an ideal place for investment. Characterized by groundbreaking entrepreneurship, Israel provides pioneering technologies, profitable business opportunities and high investment returns.
This is why major multi-nationals such as: Microsoft, Berkshire-Hathaway, Motorola, Google, Apple, Intel, HP, Siemens, GE, IBM, Philips, Lucent, AOL, Cisco, Applied Materials, IBM, J&J and many others have chosen to invest in Israel. Listed below are highlights of the records, resources and support that make Israel a smart investment both today as well as tomorrow.
Israel's Competitive Advantage
The World Economic Forum has designated Israel as one of the leading countries in the world in technological innovation. In the 2011-2012 WEF Global Competitive Index Report, Israel was ranked as the 22nd most competitive country, two spots higher than the previous year. The 2011 IMD World Competitiveness Yearbook ranked Israel as the 17th most competitive country in the world.
Further Israeli highlights from the report include:
|
Criteria |
2010 |
2011 |
|
Central Bank Policy |
1 |
1 |
|
Total Expenditure on R&D (%GDP) |
1 |
1 |
|
Scientific Research |
2 |
1 |
|
Entrepreneurship of Managers |
2 |
1 |
|
Total public expenditure on education |
2 |
2 |
|
Investment Incentives |
5 |
2 |
|
Venture Capital Availability |
3 |
2 |
|
Real Growth (%) |
17 |
12 |
Source: IMD Global Competitiveness Yearbook 2011
Israel’s successful track record of market-creating, profit-driving innovations includes:
- PrimeSense developed a system that can interpret specific gestures, making completely hands-free control of electronic devices possible by using an infrared projector and camera and a special microchip to track the movement of objects and individuals in three dimension. Microsoft's Kinect is largely based on PrimeSense's range camera technology.
- Argo Medical Technologies Ltd has developed a restoration device for people with lower limb disabilities. The company’s flagship ReWalk product offers an ambulation alternative to wheelchair users, enabling paralyzed people to stand, walk and even climb stairs.
-Intel Israel opened its first R&D center and its first manufacturing center outside the USA in Haifa and in Jerusalem in 1974 and 1985 respectively, and opened 4 additional R&D centers as well as its Fab 18 and Fab 28 plant. In early 2011 Intel's Haifa center launched the next generation of chips called "Sandy Bridge," following up on its earlier successful launch of the Centrino chip in 2003. The R&D team is currently working on "IvyBridge" the next generation scheduled for release by 2015, which is supposed to reduce the current market chips to a 22 nano-meter size.
- Oracle's Hertzliya-based R&D center, originally established by Sun Microsystems, specializes in JAVA for small non-cell ohone devices and largely developed Amazon's Kindle,
The Resources
With the world's highest percentage of engineers and scientists, Israel's greatest natural resource is its skilled workforce. Highly motivated, resourceful and independent, they enable Israel to stay ahead of the competition.
Israel’s workforce is particularly competitive because of the informal but effective get-down-to-business culture, exceptional ingenuity and entrepreneurial spirit. The combination of culture, skill and initiative creates a flexible, working system that allows for great adaptability while producing breakthrough technologies and quick time-to-market solutions.
The Support
The State of Israel encourages local and foreign investment by offering grants of up to 24% of tangible fixed assets, reduced tax rates, tax exemptions and other tax related benefits through the Law for the Encouragement of Capital Investments. In addition, the Law for the Encouragement of Industrial R&D offers conditional grants of up to 50% of approved programs.
Israel offers one of the world's most advanced infrastructures and the services required to conduct business efficiently and effectively. Israel boasts a sophisticated communications system; reliable energy infrastructure; well-developed transportation system with modern international gateways; protection of trademarks, patents, and other intellectual property; a highly developed and transparent financial system and a legal system based on common and corporate law.