emerging industries the israeli experience sharon kedmi director general ministry of industry trade...
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EMERGING INDUSTRIESTHE ISRAELI EXPERIENCE
Sharon KedmiSharon KedmiDirector GeneraDirector GenerallMinistry of Industry Trade & LaborMinistry of Industry Trade & LaborNovember, 2010November, 2010
• A small country, lacking natural resources and a significant local market
• Human capital is the main resource
• Israeli economy is export oriented and dependent on global economy status and developments
• The markets for Israeli products are several time zones away
Objective: Developing a global-facing Innovative industry that can overcome geographic & geo political
challenges while leveraging the advantages of its population
Israel Challenges
Main Economic Indicators
Source: Ministry of Finance, Bank of Israel and CBS
Criteria2006200720082009 2010E
GDP (current prices in $B)*144.0164.1191.8193.1201.0
GDP Real Growth Rate (%)5.2%5.4%4.0%0.7%4.1%
GDP per Capita (PPP adjusted)**$24,271$27,395$28,473$28,160$28,800
GDP per Capita Growth Rate (%, Current prices)
3.3%3.5%2.1%-1.1%2.3%
Exports (Goods & Services)** $B*(As Percentage of GDP)
62.6(43.5%)
71.2(43.4%)
80.4(40.3%)
70.35(36%)
81.9(40.7%)
Imports (Goods & Services)** $B*(As Percentage of GDP)
62.2(43.2%)
74.0(45.1%)
84.1(42.2%)
72.3(37.4%)
84.8(42.2%)
Unemployment Rate (%)8.4%7.3%6.1%7.6%7.2%
Israel’s Competitive Edge – IMD World Report 2009
Country Rank
BUSINESS EXPENDITURE ON R&D ( % GDP)
TOTAL EXPENDITURE ON R&D( % GDP)
TOTAL PUBLIC EXPENDITURE ON EDUCATION ( % GDP)
ENTREPRENEURSHIP OF MANAGERS
FLEXIBILITY AND ADAPTABILITY OF PEOPLE
2nd
Sweden
Sweden
Portugal
Hong Kong
Israel
3rd
Japan
Finland
Mexico
Brazil
Ireland
4th
Finland
Japan
Denmark
1st
Israel
Israel
Israel
Israel
Hong Kong
VENTURE CAPITAL AVAILABILITY Singapore Israel
Australia
Hong Kong Malaysia
Malaysia
Israel Ranks 24
EMERGING INDUSTRYSolid infrastructure for the development of new IT
Israel’s innovative ranking
Source: Economist Intelligence Unit, 2009
EMERGING INDUSTRYSolid infrastructure for the development of new IT
R&D Centers of Leading Foreign Companies
Software1,000Cisco
Capital Equip.1,000Applied Materials
Telecom1,000Motorola
Software 600Microsoft
Semiconductors 570Freescale
Software 800SAP
Computing Equip1,100IBM
Capital Equip~5,000HP- (Indigo & Mercury)
Semiconductors5,400Intel
SectorNo. of R&D EmployeesCompany
Over 200 foreign companies have established R&D centers in Israel Over 35,000 personnel are employed in these R&D centers in Israel
GE (Healthcare) 400 Medical Equip
EMERGING INDUSTRYSolid infrastructure for the development of new IT
Multinationals…• Microsoft built in Israel their first R&D facility
outside the US.
• Cisco built in Israel their first R&D facility outside the US.
• Motorola’s Israel facility is the company’s largest development center worldwide.
• 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
EMERGING INDUSTRYSolid infrastructure for the development of new IT
Israeli Breakthroughs – Selected Examples
• Given Imaging – First ingestible video camera used to view
the small intestine and diagnose disorders
• Intel’s Core 2 Duo, Centrino and Pentium 4 microprocessors
• M System’s Disk on Key and Disk on Chip flash memory
• GE Healthcare’s portable cardiac ultrasound system
• The Phillips Brilliance CT Scanner
• IP Telephony invented by founders of Vocal Tec
• AOL Instant Messenger ICQ
• Zip compression technology
EMERGING INDUSTRYSolid infrastructure for the development of new IT
Building/ floorspace
20 m2 pc
Car ownership
315 cars/1000 inh.
Energy
6,332 KWh pc/year
Waste
1.58 kg pc/day
Water
250 L
pc/day
Driving Forces Affecting the Environment
EMERGING INDUSTRY- WATER
National Water Carrier Mekorot’s Water Supply System
1964
2009
EMERGING INDUSTRY- WATER
Desalination Projects
Production 2012
Production since 12/05
Production since 12/09
Production since 09/07
Production 2013
Hadera
Sorek
Palmachim
Ashdod
Ashkelon
(110)
(150)
(60)
(100)
(110)
EMERGING INDUSTRY- WATER
Treated and Reclaimed Water
Israel recycles 75% of its wastewater Reclaimed water account for over 50% of irrigation water
Drip irrigationDifferent water prices
EMERGING INDUSTRY- WATER
Israel’s Water Achievements
Israel, with a 75% water recycling rate, is the world’s No. 1 water recycler.
Israeli-invented Drip irrigation helped achieve 70%-80% of water efficiency in agriculture – the highest rate in the world.
Israel has achieved the highest ratio of crop yield per water unit. Israel is the home to the world’s largest Seawater Reverse
Osmosis desalination plant, annually producing 100 MCM at a low cost of ~$0.65 per CM of water – the most cost-efficient of its kind in the world.
Israel creates 25% of its consumed water. Israel’s total water consumption has remains the same since the
1960s, despite a growing population and rising water requirements.
EMERGING INDUSTRY- WATER
Water Technology Companies
300 companies (60% start-ups at R&D stage established after 2001)
8,000 employees Export by water technology industry:
2005: $704 M2006: $851 M2007: $1,094 M2008: $1,550 M
EMERGING INDUSTRY- WATER
704
851
1094
1550
2005 2006 2007 2008
Fields of Expertise
Unique PositionUnique Position Unique PositionUnique Position
Water Security
Water Mgmt.
Water Reuse
Desalination
Irrigation
Wind
Solar
Bio-fuels
Energy Efficiency
Geo & hydro
EMERGING INDUSTRY- WATER & ENERGY
Driving Forces in IsraelThe driving forces for development of solar energy technologies
stem from Israel’s geographic conditions: Abundance of sunny days 50% arid zone Lack of oil resources
Comprehensive R&D environment Strong synergy between academia and industry A range of academic institutions and R&D centers
Innovative companies Over 100 companies with renewable energy solutions
EMERGING INDUSTRY- ENERGY
Israeli Renewable Energy Highlights
Solar air-conditioning
Sun-heated water tanks
Over 85% of residential buildings in Israel use solar collectors,
representing 4% of Israel’s energy demands.
Home to the largest Solar Thermal company worldwide.
Cooperation between R&D and Academia.
EMERGING INDUSTRY- ENERGY
Local Market
Current Installations: 45 MW (Home, Commercial PV) National Targets: (5%) 850 MW by 2014
(10%) 3500 MW by 2020 Electricity Supply Tenders:
“Ashalim Project” – Accountant General Office Schedule:
In short list, tender out in Q2/2010 Technology:
PV 15MW x 2
CST 110MW x 2 Land Tenders:
“Timna Project” – Land Authority
Land for 50 MW CST
EMERGING INDUSTRY- ENERGY
Innovation - 1st in Medical 4th in Biopharma创新—医疗器械第一，生物制药第四
- 50 100 150 200
Italy
Netherland
Belgium
France
UK
Japan
Canada
Sweden
Germany
Israel
Denmark
Switzerland
USA
Medical patents/capita BioPharma patents/capita
Source: USPTO- 20 40 60 80 100 120
South Korea
France
United Kingdom
Netherland
Denmark
Taiwan
Canada
Belgium
Germany
Switzerland
Japan
Sweden
United States
Israel
EMERGING INDUSTRY- HEALTHCARE
0
50
100
150
200
250
300
350
400
2003/4
2008/9
Academic Environment Great Potential for long term growth
Human Capital: Ph.D. graduates
Source: Israeli Bureau of Statistics, VATAT, salary.com, Tripletec manpower agency & HR interview
20
EMERGING INDUSTRY- HEALTHCARE
Science & Novelty 科学与革新Nobel Prize Winners 诺贝尔奖得主
Prof. Avram Hershko & Prof. Aaron CiechanoverProf. Avram Hershko & Prof. Aaron CiechanoverWinner of the 2004 Nobel Prize in Chemistry Winner of the 2004 Nobel Prize in Chemistry 20042004 年诺贝尔化学奖获得者阿龙年诺贝尔化学奖获得者阿龙 ·· 切哈诺沃（左）、阿夫拉切哈诺沃（左）、阿夫拉姆姆 ·· 赫什科赫什科 （右）
Total of Total of 99 Nobel Prize winners in Economy (2005, 2002), Literature (1966) and in Nobel Prize winners in Economy (2005, 2002), Literature (1966) and in Peace (1978,1994).Peace (1978,1994).共有共有 99 名诺贝尔 奖得主分别是名诺贝尔 奖得主分别是 20052005 ，， 20022002 年的经济学奖，年的经济学奖， 19961996 年的文学年的文学奖以及奖以及 19781978 年和年和 19941994 年的和平奖。年的和平奖。
Prof. Ada Yonath Prof. Ada Yonath Winner of the 2009 Nobel Prize in Chemistry Winner of the 2009 Nobel Prize in Chemistry 20092009 年诺贝尔化学奖获得者阿达年诺贝尔化学奖获得者阿达 ·· 尤纳斯尤纳斯
EMERGING INDUSTRY- HEALTHCARE
Major Technological Fields:主要医疗领域
• Implantable therapeutic devices 可植入式治疗器械
• Diagnostics & Monitoring – Device & Biomarkers 诊断及监控—器械及生物标记
• Therapeutic molecules 治疗分子 • External Imaging 外部成像• Internal Imaging 内窥成像• Drug delivery 药物传输• Cell & Tissue Therapy 细胞及组织治疗• Minimal Invasive Surgery 微创手术
EMERGING INDUSTRY- HEALTHCARE
Money raised by Israeli Life Science companies以色列生命科学公司筹集的资金量
Source: IVC-Online, Jan 2010
EMERGING INDUSTRY- HEALTHCARE
ProductIndicationCompany Licensee
Revenues2008
Academic
Institute
Inventor
Copaxone(glatiramer acetate)
Multiple Sclerosis多发性硬化症
Teva$M 2,260Weizmann Institute
Michael Sela
Rebif(interferon beta-1a)
Multiple Sclerosis
Merck-Serono€M 1,331
Weizmann Institute
Michel Revel
Exelon(rivastigmine tartrate)
Alzheimer’s老年痴呆症
Novartis$M 815
Hebrew University
Marta Rosin
Doxil / Caelyx(Doxorubicin liposome)
Cancer癌症
J&JSchering-
Plough$M 430
Hebrew UniversityHadassah Hospital
Alberto Gabizon
Azilect(rasagiline )
Parkinson帕金森症
Teva$M 175
Launched July 2006
TechnionMoussa Youdim
ErbituxCancer癌症
Merck-Serono
Bristol-Meyers Squibb
€M 565 Launched 07-
08 M$ 749
Weizmann Institute
Michael Sela
Israel’s Life Sciences Industry - Blockbuster Launched ProductsEMERGING INDUSTRY- HEALTHCARE
• 80 High-tech companies are developing technologies based on Nanotechnology
• 390 joint projects for Academia and Industry.• 420 Nanotechnology patents.• 3250 Academic publications by Israeli
researches.• 675 new PHD’s for Nanotechnology annually.• 52 leading Israeli Nanotechnology scientist
returned to Israel in recent years.
EMERGING INDUSTRY- NANO MATERIALS
Israel Nanotechnology industry Highlights
Qlight Nanotech • Qlight’s technology is based on unique semiconductor
nanocrystals. • Enable light conversion from UV and blue wavelengths to
any other wavelength in the visible range• Qlight has collaboration with Merck KGaA, for developing
semiconductor nanocrystal materials for application in LED lighting and flat panel displays.
EMERGING INDUSTRY- NANO MATERIALS
One example. Endless possibilities
Thank You!