Download - Startup Nation SC
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STARTUP NATION:Israels Surprising Economic SuccessIn The Face Of Adversity
(And What It Means For SC)
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November 29, 1947 UN General Assembly votes to adopt
the UN Parti tion Plan
The first known Kingdom of Israel in this location wasin the 11thcentury BCE),
The majority of the world continues to question Israels
right to exist
Israel has a PR problem!
The State of Israel is a Startup
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Entrepreneurship is the backbone of the country
No known natural resources
Necessity is the mother of INNOVATION
Agricultural innovation
Military innovation
Infrastructural innovation
The State of Israel is a Startup
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Personal Computers
** Slide as produced by Jonathan Medved
http://www.appliedmaterials.com/index.html -
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Consumer Electronics
** Slide as produced by Jonathan Medved
http://www.harmonicinc.com/index.cfmhttp://www.optibase.com/http://www.m-systems.com/http://www.nds.com/homepage.htmlhttp://www.zoran.com/ -
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Medical / Life Sciences
** Slide as produced by Jonathan Medved
http://www.tevapharm.com/about/http://www.givenimaging.com/Cultures/en-US/Given/English/http://www.medinol.com/index.html -
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Telephony
http://www.nice.com/http://www.comverse.com/ -
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Software/Internet
** Slide as produced by Jonathan Medved
http://www.rsasecurity.com/http://images.google.com/imgres?imgurl=http://www.jspwiki.org/attach/WikiMarkup/lock.gif&imgrefurl=http://www.jspwiki.org/Wiki.jsp?page=WikiMarkup&h=170&w=250&sz=10&tbnid=ydnDY7lalisJ:&tbnh=72&tbnw=106&hl=en&start=1&prev=/images?q=lock&hl=en&lr=&safe=off&rls=GGLD,GGLD:2004-26,GGLD:en&sa=Nhttp://www.symantec.com/http://www.retalix.com/index.html -
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Compulsory Military Service
Global Orientation
Progressive Immigration Policies
Pro-active Government Policy
Persistence
Diaspora Community
Mash-Ups
The Secret Sauce
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What is important about mili tary service?
18 year olds spend at least 2-3 years serving
Development of critical leadership skil ls
Responsibil ity and accountability for the well being of others
Taught to question authority for improved outcomes
Willingness to take risks in the face of adversi ty
Persistence and desire to learn from mistakes
Development of military technology often converted to civil ian uses
Highly trained and educated workforce
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Very high-quality education infrastructure
Highest ratio of university degrees to population in the world
Bil l Gates:The quality of education is one of the key factors that has made Israel so
unique in the great companies and partners we've had...
Warren Buffet:
If you go to the Middle-East looking for oil, you do not need to stop inIsrael. But, if you are looking for brains, for energy and for integrity, theonly stop you need is in Israel.
Highly trained and educated workforce
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Progressive policy encourages immigration
Israel is built on successful integration of cultures
Mass immigration from former Soviet Union
Absorbed 5+% population increase in one year
58% were scientists, academic scholars, associate
professionals and technicians ( >2x the percentage of workers
in these fields)
A country of immigrants
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Yozma (initiative) 1993 VC pol icy
Offered attractive tax incentives for foreign venture capital investments
Promise of government to DOUBLE any investment with government funds
VC investment rose nearly 60-fold, from $58 mill ion to $3.3 billion (90-00)
VC-launched businesses went from 100 to 800
Establishment of incubator system to leverage approximately
750,000 scientists, engineers, and physicians arriving from former
Soviet Union (24 incubators today)
Pro-active government policy
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Government privatized the incubators
Policy of supporting R&D
Office of the Chief Scientist tasked with encouraging high value-added
R&D and collaboration nationally and internationally
This years budget for R&D suppor t:
NIS 1.42 bil lion -- approximately $375 Mill ion
Pro-active government policy
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Hi-tech center and culture of entrepreneurship
Hundreds of multi-national companies in Israel
Microsoft, Intel, Motorola, IBM, Google, Yahoo, etc.
Leading VC firms operate in Israel Sequoia, Lightspeed, Bessemer, NVP, Battery, etc.
Overall VC investment over $2 bil lion per year
Number 1 over all of continental Europe
Number 1 in the world on a per capita basis
In absolute terms, 2ndoverall only to Silicon Valley
Israel as a hub of innovation
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Relative to the population, largest number of startup
companies in the world
In absolute terms, largest number second only to US
Outside the US, largest number of NASDAQ-listed
companies
Israel as a hub of innovation
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Israel: Highest R&D spending as % GDP and per capita
Innovation we can emulate
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South Carol ina vs. Israel
So how do we compare?
South Carolina Israel Compared
Geographic Size 32,020 sq. mi. 8,019 sq. mi. 400%
Population 4.7 million 7.8 million 60%
GDP $166 Billion $245 Billion 67%
VC Investments $73 Million $2,139 Million 3%
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Back-to-back record years:
2010: $4.1 bil lion in Capital Investment and creation of over
20,000 new jobs
2011: $5.1 bil lion in Capital Investment and creation of over20,000 new jobs
Since 2006: Over $22 billion in Capital Investment
and creation of over 107,000 new jobs
Foreign Direct Investment
Over 72% of capital investment and 46% of jobs in 2011
SC is experiencing record growth
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International leader in attracting Foreign Direct Investment
Strategic location
Good infrastructure: Roadways, Rail, and Port
Need ongoing spending to maintain and compete
Higher Education and Research Environment
SmartState ~ 120 endowed chairs (criti cal need)
Over $550 Million in research funding at our 3 major research universi ties
Technical College System ReadySC workforce training program
Apprent iceship Carolina
Our strengths
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Department of Commerce Incentives (deal dependent)
Based on capital investment, number of jobs and wage scale
etc.
Counties can play major role in incentive package
SCRA / SC Launch
Project Development Funding Grants, Start-Up Assistance
Grants, SBIR Grants, and Loan and Equi ty-based Investments of
up to $200,000
Support for landing parties and demonstration projects SC InvestorsVC, Angels, Corporate Investors
Collaborative research grant support
Incentives
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Identify newincentives to attract innovation capital
Tax breaks for R&D and Venture Capital investment in our state
Enact legislation like the proposed South Carol ina Angel
Investment Act of 2011
Increase direct government grant support, if possible Create, stimulate and support collaboration
Example: SC-Israel Collaboration
Stimulate business and research partnershipsbetween
companies and universi ties in South Carolina and Israel as a
way to generate economic development, jobs, and
investmentsto the benefit of all.
www.SC-Israel.org
We need to align around innovation!
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Champion educational excellence
Nurture innovators
Groom exceptional leaders
Encourage entrepreneurs of tomorrow
Attract and/or retain highly skilled and highly educated
workforce
We need to align around innovation!
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Get educated! Get networked! Stay in SC!
Young students must identify an opportunity and gain
relevant education and experience
Seek work-based opportunities to grow experience and
network in the chosen field* Consider study abroad and internship programs particularly in Israel!
Network, network, network!
Ask your state leaders to support legislation encouraging
venture capital investment and/or facilitating government-sponsored startup funding (key drivers of innovat ion)
At the end of the day:
Role of our students and workforce
Stay in South Carolina
our state needs you!
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Education Pays
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Thank You