Date: June 1, 2005

New York City

Diamonds are made under pressure. So too are Israeli companies. Despite the enormous geopolitical challenges that it faces, Israel has become a leader in biotechnology, security, semiconductors, telecommunications, software and Internet technologies. Israel’s success in creating and commercializing technological innovations is massively disproportionate to its tiny research budget and population. 

The facts speak for themselves:

• Israel is number one in terms of scientists, engineers, doctors and technicians per capita.

• Israel is number one in the world in scientific publications per GDP.

• Israel ranks third in terms of citizens bearing university degrees per capita.

• Israel is number one in terms of venture capital deals relative to its population.

• Israel devotes 1% of its GDP to venture capital investment, more than any other country in the world.

• Israel ranks number one in multi-national high-tech companies per capita. 

However, Israel is beset with colossal challenges. First, there are many terrorist groups and rogue nations that are committed to Israel’s obliteration. Second, Israel’s elementary school system is crumbling. The Office of Chief Scientist is reducing its research and development grants. As a result, some companies are shutting down their research initiatives in Israel. Tens of thousands of highly-educated and successful Israelis have emigrated and many will never return. Other nations—namely India and China—are rapidly ratcheting up their human capital. These countries are fast building technology centers that are competing with Israel. 

Don’t miss this unique opportunity to learn about Israel’s competitive advantages. Are these advantages sustainable? Are they sufficient to take on emerging giants such as India and China? Discover some of the companies that are shifting paradigms with their awesome technologies.

Are Israel’s Competitive Advantages Sustainable?

Israeli companies have enjoyed unparalleled success in discovering and commercializing breakthrough technologies. Israel invests more of its resources on a relative basis—and derives a higher return on these investments—in research and development than any other country in the world. As a result, Israel has the most publicly-traded high-tech companies relative to its population. 

Israeli entrepreneurs have an amazing determination to succeed. This truculence is complemented by the Israeli government’s efforts to assist Israeli companies from everything from tax holidays to research grants and from free trade agreements to trade promotion. 

Other unique Israeli advantages include a large immigrant population with the ability to speak a diversity of languages; the impetus to seek markets beyond its borders; and, very high levels of maturity of young entrepreneurs due to years of military service. 

However, Israel’s success should not be taken for granted. Other nations are producing far more engineers and scientists than Israel. Other nations are very aggressive in extending incentives to businesses. And other nations offer greater geopolitical stability.

Our Investing in Israel conference is designed for institutional investors and senior executives who are assessing whether or not Israel will retain its top ranking in terms of commercializing technology. Most telling will be presentations by corporate leaders that are championing cutting-edge technologies. 

Don’t miss this unique opportunity to discover the dynamism and profit potential of Investing in Israel.

We look forward to seeing you on June 1.

Naomi Barazani
Conference Chairwoman
The Wall Street Transcript