IBM Research - State of the Israeli Technology Industry…and ......Israel’s Information and...

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State of the Israeli Technology Industry…and the Future Dr. Orna Berry Venture Partner, Gemini Israel Funds

Transcript of IBM Research - State of the Israeli Technology Industry…and ......Israel’s Information and...

  • State of the Israeli Technology Industry…and the Future

    Dr. Orna BerryVenture Partner, Gemini Israel Funds

  • Israel’s Information and Communications Technology (ICT)

    Industry

    2002 ICT GDP - NIS 33 billion17% of business sector GDP.OECD highest - compared to 10-11% in

    Korea and US.2003 ICT exports - US $10.1 billion.

    Investment in ICT research and development is 23% of the ICT GDP.

    OECD highest - compared to 16-17% in Japan and Finland.

    Israeli ICT GDP grew from NIS 8.7 billion in 1990 to NIS 39 billion in 2000.

    Source: CBS, 2002/ 2003

  • Share of ICT in Business Sector Product

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    ICT production accounted for 18.4% of Israel’s business sector product in 2003

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    Source: Ministry of Finance

    Israel has one of the highest educated workforces in the world with first class education institutions

    77% of the population are high school graduates 20% of the population have academic degrees

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    Tech Savvy CountryBroadband

    subscribers (% Households)

    PC penetration (% population)

    2,5 Mio BB Subscribers

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    Source: Alcatel January 2004

    Israel

    Israel: over 60% PC penetration, 50% Broadband penetration

  • General recognition (both major parties) that growth of Israel’s private high-tech sector

    is criticalMeaningful support for qualified companies,

    Role of the Government

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    R&D: Israel ranks highest in Civilian Research and Development

    Source OECD EU Report, 2002

  • Collaboration

    GDP ratio from start-ups: 25 percent contraction in the product of start-ups in Israel in 2003

    Therefore:

    • State as an economic assistant must create opportunities for collaboration with start-ups

    • First candidates for collaboration: Larger players selling into Israel

    • Collaborative organizations emerging…

  • Collaboration: IMA• Non-profit

    organization aimed at enhancing the

    competitive edge of the Israeli mobile industry

  • The Second Silicon Valley

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  • Future Trends

    • Communications Industry Pick-up and Renewal

    • Technology moves from Military to New Applications

  • Communications Revolution is taking Place

    Communications Revolution is taking Place

    Broadband Broadband everywhereeverywhere

    DelayeredDelayeredand open and open networknetworkand IT platformsand IT platforms

    IP networkIP network1

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    MultiMulti--access access innovative devicesinnovative devices

    45

    Ubiquitous wirelessUbiquitous wireless3

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    •Physical networks / •transport

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  • Communications as a segment of Global ICT

    Source: WITSA Digital Planet Report, 2004

  • WiFi, WiMax, WiMedia

    Broad-based uptakeA stereotype of the “Innovator’s dilemma”

    Riding industry standardsFrom hot spots to hot zones

    From laptops to VOIP phones

    As Presented by Eric Benhamou, Telecom Israel 2004

  • Israel takes part in technology…

    Jerusalem recently became Israel’s first city to offer WiFi access

    The project was the brainchild of an Intel Israel executive and is currently offered as a free service

    Many cities worldwide are currently planning their WiFi networks

  • …and in development

    It is estimated that some 15% of all communications equipment sold around the world comes from Israel.

    Source: UK Trade and Investment profile, 2003

    •Telecommunications Software: over 15

    companies• Data and cellular communications:

    over 25 companies• Microwave and mobile

    comm.: over 16 companies

    • Radio and satellite communications:

    over 20 companies• Wireless

  • Military Technology - Peaceful Applications

    Given Imaging:• Brainchild of a missile

    guidance expert • Rafael Development Corp

  • Military Technology – HLS Applications

    Commodity Protection

    18 Companies

    Explosives &Hazardous Materials

    21 Companies

    Identification/Authentication

    37 Companies

    Anti-AircraftMissile Protection

    2 Companies

    Intrusion Detection

    35 Companies

    Tracking & Motion Control

    12 Companies

    Access Control

    12 Companies

    System Integrators

    14 Companies

    Command & Control

    29 Companies

    180 Israeli companies are developing technologies for the Home Land Security Market

  • Israel – From Military to Communications

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    Communications startups - over 50 companiesIncluding: RedC, Lightwave, Passave, Lynx, Lambda Crossing

    Evolution from Defense to Communications

  • New Markets

    China and India will bring Risks and Rewards

    • ICT industry product grew 7.5% in 2003, more moderate growth than some other

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    Morgan Stanley - The China Internet Report, June 2004As Presented by Eric Benhamou, Telecom Israel 2004

    The market for communications and wireless services in China is growing exponentially

    Note that there are more mobile phone users in China today than the population of the US!

  • Summary

    Israel’s people, government incentives for technological growth and collaborative

    efforts among industries bring us to a point in Israel’s ICT history with great potential