How Are Israeli Startups So Successful?

Israel is now considered to be the home to one of the world’s largest startup hubs, right behind Silicon Valley in San Francisco. Many innovations and advancements are pouring out of Israel and benefiting the rest of the world. Israel also benefits from a large well-educated workforce that makes these innovations and breakthroughs possible. Top talent is screened, trained and pushed into startups to help them meet their growth targets. In fact, this workforce and Israel’s startup success has attracted some of the biggest and well-known companies of the world to acquire Israeli startups. The list of companies would include IBM, Oracle, AT&T, Google, Facebook, Microsoft, Twitter, Amazon among many others. For example, Waze, the GPS app, was founded in Israel and purchased by Google for $1.3 billion in 2013. While Intel purchased Mobileye for $15.3 billion.

Top companies are also recruiting top Israeli talent. Microsoft, for example, hired a 34-year-old security prodigy from Israel who was a member of the elite Unit 8200. He will be responsible for pushing Microsoft’s security expertise to new levels. He will also be a crucial part of Microsoft’s cloud security team, which is a cornerstone of Microsoft’s growth. Amazon has also recently hired 10 Israeli engineers to help improve their Alexa product.

Just take a look at the life that you are living, chances are you are benefiting from an Israeli startup’s work.  If you own a smartphone, involved in Internet marketing, in the hospital and healthcare industry, the pharmaceutical industry, among others, the chances are that the goods and services you are enjoying from these industries have Israeli technology back of them.

It is a common question that many people may ask, what is the cause behind Israel’s success? It is also a question that is very complex with many parts to the answer. According to Mehul Agarwal, a tech business development and strategic partnerships expert who manages companies with revenues of $45 million, Israel is successful because of their commitment to research and development (R&D). In fact, Israel is spending more per capita than the average business on R&D. Many successful CEOs and business experts like Mehul agree that investing more of the companies profits into R&D is essential for the business’ long-term future. In fact, this business model has been behind both Amazon and Alibaba’s massive success in recent year. This researching is allowing Israeli startups to bring about new ideas and technologies that are innovating and improving the world. According to The Organisation for Economic Co-operation and Development (OECD), Israel is spending almost double on research and development than the average country.

In addition to being a global leader in research and development, Israel is also leading the way in the field of scientific publication. In the past decade, Israel is currently ranked third in the world. Israel is clearly a thriving hub of science, research and development, and business, and this is contributing to their startup’s success. Tech incubators and accelerators are also readily available in Israel which contributes to Israel having the perfect culture for the startup lifecycle.

About the Author
Frank Coutinho is passionate about business and entrepreneurship. After studying Business Management at university he started his own e-commerce company. He enjoys reading the daily business news, especially news on startups and the technology industry. In his free time, Frank enjoys reading, soccer, hiking, and watching documentaries.
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