Business Climate
Israel’s large concentration of talented and innovative people makes it an ideal place for investment. Characterized by groundbreaking entrepreneurship, Israel yields pioneering technologies, profitable business opportunities and high investment returns.
This is why major multi-nationals such as: Microsoft, Berkshire-Hathaway, Motorola, 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 2008-2009 WEF Global Competitive Index Report, Israel was ranked as the 23rd most competitive country. The 2010 IMD World Competitiveness Yearbook ranked Israel as the 17th most competitive country in the world.
Further Israeli highlights from the report include:
| Criteria | 2009 | 2010 |
| Resilience of the Economy | 8 | 1 |
| Central Bank Policy | 8 | 1 |
| Total Expenditure on R&D (%GDP) | 1 | 1 |
| Skilled Labor | 8 | 1 |
| Finance Skills | 8 | 2 |
| Entrepreneurship of Managers | 1 | 2 |
| Venture Capital Availability | 3 | 3 |
| Real Growth (%) | 17 | 12 |
Source: IMD Global Competitiveness Yearbook 2010
Israel’s successful track record of market-creating, profit-driving innovations includes:
M-Systems was the first to offer Disk-on-Key and Disk-on-Chip flash memory products, and changed the way people store and handle information.
The Philips Brilliance CT Scanner, developed in Israel, takes a comprehensive picture of a patient in seconds instead of minutes, in the emergency room where every second counts.
IP Telephony was invented by the two Israelis who founded VocalTec.
ZIP compression technology was developed by two professors at the Technion, Israel’s Institute of Technology.
Given Imaging developed the first ingestible video camera to view the small intestine from the inside, and help doctors diagnose cancer and digestive disorders.
The technology for the AOL Instant Messenger ICQ was developed in 1996 by four young Israelis.
Comverse invented voice-mail.
Revolutionizing present day agriculture techniques, Netafim developed modern drip-irrigation technology and Israeli companies continue to lead this field with innovative breakthroughs.
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 percent of tangible fixed assets, reduced tax rates, tax exemptions and other tax related benefits through the Law for the Encouragement of Capital Investments. The Law for the Encouragement of Industrial R&D offers conditional grants of up to 50 percent of approved programs.
Israel offers one of the world’s most advanced infrastructure 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.
Source: Invest in Israel
