Where Breakthroughs Happen - Startup Nation 1 5 2012... · Startup Nation Where Breakthroughs...

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Startup Nation Where Breakthroughs Happen 1 May 2012 Source: State of Israel Ministry of Industry, Trade & Labor

Transcript of Where Breakthroughs Happen - Startup Nation 1 5 2012... · Startup Nation Where Breakthroughs...

Page 1: Where Breakthroughs Happen - Startup Nation 1 5 2012... · Startup Nation Where Breakthroughs Happen 1 May 2012 Source: State of Israel Ministry of Industry, Trade & Labor

Startup Nation

Where Breakthroughs Happen

1

May 2012

Source: State of Israel Ministry of Industry, Trade & Labor

Page 2: Where Breakthroughs Happen - Startup Nation 1 5 2012... · Startup Nation Where Breakthroughs Happen 1 May 2012 Source: State of Israel Ministry of Industry, Trade & Labor

Multinationals

� Microsoft built their first R&D facility outside the US in Israel.

� Cisco built their first R&D facility outside the US in Israel.

� Motorola’s Israel facility is the company’s largest development center worldwide.

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� 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 two R&D centers in Israel

� EMC built its Israel Development Centre of Excellence in two locations

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Haifa Region

Tel Aviv Region Jerusalem

Northern Region

R&D Centers In Israel

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Tel Aviv Region Jerusalem Region

Southern Region

Maps: Wikipedia

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Intel Success Story

� Over 7,000 employees

� 4 active R&D Facilities

� 2 Manufacturing Centers

Developments Include:

1st R&D Acquired DSPC –

AcquiredEnvara –

P. Tikva R&D

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200820052004200119991974 1985

1st R&D Center outside USA opened in Haifa

Fab 18 manufacturing center opened in Kiryat-Gat – $1.6 Bill

1st Manufacturing center outside USA opened in Jerusalem

YakumR&DCenter

JerusalemR&DCenter

YokneamR&DCenter

Acquired Oplus –$100 Mil

DSPC –$1.6 Bil

Fab28 m. plant Opened in Kiryat Gat – $3.5 Bill

AcquiredMobilian

Envara –40 Mil

R&D Center

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IBM’s Success Story

� Over 2000 employees in Haifa, Rehovot, and Jerusalem

� From 2001-2009:IBM made 23 acquisitions

� GTU - Global Technology Unit

Acquired Ubique$15 million

Opens 1st BranchIn 1950

Acquired Unicorn Solutions$7.5 million

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2009200820072006200519981950 1972

$15 million

Opens Haifa Development Lab, an IBM scientific center

Acquired WatchfireConverts it to R&D Software center

$7.5 million

Acquired FilesX$80 million

Acquired Diligent Technologies$165 million

Acquired Guardium$225 million

Acquired XIV$300 million

AcquiredIphrase Technology

2010

Acquired Storwize$140 million

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EMC’s Success Story

� Over 800 employees

� Center of Excellence in 2 active R&D sites

EMC starts operation in Israel

RSA acquires Cayota

EMC acquires Kashya.

EMC acquires Illuminator.

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1996 2011200720061997

Israel

EMC established its R&D center in Kibbutz Nirim IL

EMC Israel’s Sales Operation is formally established

EMC acquires Zetta Point

1991

EMC Israel development center is established

EMC acquires nLayers

EMC acquires Proactivity

EIDC and RSA consolidate to the new Israel COE in Herzelia

EMC established Beer-Shevasite

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• Innovate everywhere

• Operational excellence

• Expand geographic presence

• International investments

• New partnership models

Centers Of Exellence Guiding Principles

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• Operational excellence

• World class talent

• Product localization

• Grow government/academic

relationships

• Community involvement

• Go-to-market

Page 8: Where Breakthroughs Happen - Startup Nation 1 5 2012... · Startup Nation Where Breakthroughs Happen 1 May 2012 Source: State of Israel Ministry of Industry, Trade & Labor

Israel Hi-Tech Cluster

GlobalHi-tech

Companies

Availability ofTechnical People &

Management

Existing

Technology Infrastructure

Experienced2nd time

entrepreneurs

University ComputerScience Students

Government Support Incubators

Defense

CorporateR&D

“Solid” Infrastructure

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CompaniesManagementExpertise

Infrastructure Students

Multi National Corp.

Seasoned VC CommunityEntrepreneurial

Culture

LeadingAcademicInstitutions & Research

CorporateSpin-Offs

Immigration“Soft” Infrastructure

Source: IVA

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NASDAQ Non-US Listed Companies: Selected Countries

40

50

60

70

80

90

9

0

10

20

30

Source: NASDAQ (10/2011). Analysis: Invest in Israel

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V. Capital Raised by Israeli Hi-Tech Companies ($USD Millions)

1500

2000

2500

10

0

500

1000

02' 03' 04' 05` 06' 07' 08' 09' 10'

Israeli Foreign

Source: IVC-ONLINE

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Israeli Breakthroughs: Selected Examples

Given Imaging’s first ingestible video camera used to view the small intestine and diagnose disorders

Intel’s Sandy Bridge, Core 2 Duo, and Centrino

M System’s Disk on Key and Disk on Chip flash memory

GE Healthcare’s portable cardiac ultrasound system

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The Phillips Brilliance CT Scanner

IP Telephony invented by founders of Vocal Tec

Argo Medical – First commercially available upright walking technology enabling wheelchair users to walk and climb stairs

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The Global Competitiveness Report 2010-2011 (World Economic Forum)

“Israel ranks 24th in this year’s GCI, up three positions after having suffered losses in competitiveness over the past years. The country’s main strength remains the excellent—and improving—capacity for innovation

Utility Patents per Million

Company spending on R&D

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capacity for innovation (6th), which rests not only on highly innovative businesses but also on the availability of high-quality research institutions and is reflected in a high number of patents.”

World Economic ForumThe Global Competitiveness Report 2010-2011

Quality of scientific research institutions

Capacity for Innovation

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Leading the national effort of

bolstering the Negev by

transferring IDF bases, utililizing

The IDF Ascends to the Negev: A Vision

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transferring IDF bases, utililizing

elite units, and assigning quality

manpower to the Negev.

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Israel – Current Status

The State of IsraelPopulation Density by Region

The majority of Israel’s

population is located in the

centre of the country.

This is also the case in terms of

1.2 Million Residents 16% of the Population

3 Million Residents 40% of the Population

Source: Central Bureau of Statistics. Data from 2008.

This is also the case in terms of

Israel’s economic activity. There

are wide economic gaps between

the centre and the periphery.

This consolidation is an obstacle

to sustainable growth.

1 Million Residents 14% of the Population

Legend

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Israel – Current Status

12% of Factories and 17% of

Israeli Jobs.

57% of Factories and 50% of Israeli Jobs

The majority of Israel’s

population is located in the

centre of the country.

This is also the case in terms

Source: Central Bureau of Statistics. Data from 2008.

9% of Factories and 13% of Israeli Jobs

This is also the case in terms

of Israel’s economic activity.

There are wide economic gaps

between the centre and the

periphery. This consolidation

is an obstacle to sustainable

growth.

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Israel – Objective in 2030

A more uniform distribution of

Israel’s population and

economic activity – 45% of

residents and jobs are

concentrated in the Negev and

2.4 Million Residents Constitute 25% of the Population

Legend

concentrated in the Negev and

in the Galilee.

Per capita income would be at

least that of central Israel.

2 Million Residents Constitute 20% of the Population

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Cycle of Output and Outcomes

The IDF

Upgrading National

InfrastructuresIn the Negev Moving

High qualityPopulation

To the Negev

ContinuousSettlement

AreaAlongside southern

Har-Hevron

Expanding The scope of

Economicactivity

ReinforcingThe IDF Ascends

to the Negev

Shift of Security

Purchases andProjects

To the Negev

Handling Of the

EnvironmentInfrastructures

ReinforcingEducation &

Health systemsIn the Negev

PrivatizationOf

services

Employmentgrowth

Capital Investment

In the NegevDuring

Constructionperiod

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Summary

� Israel is a center of innovation and technological excellence

� Israel is a leading entrepreneurial society

� Israel enjoys an excellent track record in breakthrough discoveries and innovations

� Future results are expected to improve due to the maturity of the market

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the market

� Foreign companies can cost-effectively conduct cutting-edge research in Israel

� Israel’s government and policies strongly support investment and economic growth

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Thank You!

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You!

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