Transcript מצגת של PowerPoint - Rechtsanwalte in Berlin und

The High-Tech Industry
And The Israeli
Economy 2005
Presented by
Eran Davidson
President and CEO
Hasso Plattner Ventures
Israel – General
Background
• Area: 20,770 sq km
(the world’s 100th smallest country)
• Population – 6.8 million
(% 0.01 of the world!)
• Gross Domestic Product (GDP)
$120 billion ($17,500 per capita –
exceeding that of UK)
• GDP Growth Rate: 5.1%
• Exports : $51.5 billion
• Imports : $52 billion
ISRAELI GEOGRAPHY
Israel and the Mediterranean
Facts & Figures
Main Economic Indicators
Criteria
2002
2003
2004
2005
GDP (current prices in B$)
104.2
110.4
117.6
124
GDP Real Growth Rate (%)
-0.7%
1.3%
4.3%
5.1%
15.9
16.5
17.3
17.9
GDP per Capita Growth Rate (%)
-2.7%
-0.5%
2.5%
3.2%
Exports of Goods & Services (B$)
37.0
38.4
50.4
56.7
Imports of Goods & Services (B$)
45.6
44.3
57.7
57
Unemployment Rate (%)
10.3%
10.7%
10.4%
9.1%
Inflation Rate ( CPI, end of year)
6.5%
-1.9%
1.2%
2.8%
GDP per Capita (current prices, M$)
And this is achieved in a country
with the highest expenditure on
defense and security issues (in
absolute numbers per capita), and
not natural resources beside brain
power
Israel’s Economic
Characteristics
Economic Stability
Constant Growth
Political Stability
Fast Development of Technology
& Hi-Tech Industries
Human Capital
Israel’s Economy – Main
Characteristics
Export Oriented Industry
• Entrepreneurial Culture
• Supportive Environment for
Business
• Investment & R&D Incentives
About Palm Trees
Some interesting facts about Israel
• The Middle East has been growing date palms
for centuries. The average tree is about 20 feet
tall and yields about 38 pounds of dates per
year
• Israel date trees are yielding 400 pounds per
year and are short enough to be harvested from
the ground
High tech samples from Israel
• The Cell Phone was developed in Israel by
Israelis working in Motorola, which has its
largest development center in Israel
• Microsoft, Intel and Cisco built their only
R&D facilities outside the US in Israel
• SAP built their only R&D facilities outside the
US and Germany in Israel, with 700 scientists
• The Pentium Chip in your PC was most likely
produced in Israel
Israeli high tech innovations
• Voice mail technology was developed in Israel
(Comverse)
• Instant Messaging technology was developed
in Israel (“ICQ”, now AOL)
• Most of Windows NT and XP was developed
in Israel by Microsoft Israel
• The Pentium MMX, Pentium 4 and Centrino
Processors were developed in Israel
Medical developments
• Israel “Given Imaging” developed the first ingestible
Video Camera, so small it fits inside a pill. Used to
view the small intestine from inside, to diagnose and
monitor cancer and digestive disorders.
• Israeli scientists developed the first fully
computerized, no-radiation, diagnostic
instrumentation to breast cancer
• A new acne treatment was developed in Israel – the
Clear Light device produces a high-density, EV-light
free, narrow band that causes acne bacteria to self
destruct, without damaging surrounding skin
Alternative Energy, environment…
• An Israeli company was the first to develop
and install a large scale solar powered and
fully functional electricity generating plant, in
Southern California Mojave desert.
• Israel is the only country in the world that
entered the 21st century with a net gain in its
number of trees, made more remarkable when
considering it was achieved in an area
regarded mainly desert
The Human Factor
• In absolute terms Israel has the largest number of
startup companies worldwide (second after the US) –
well over 3,000.
• Israel produces more scientific papers per capita than
any other nation by a large margin – 109 per 10,000
people
• Israelis file more patents per capita than any other
nation worldwide
• Israel has the highest ratio of University degrees to
the population in the world
Jaffa Oranges vs Hi-Tech
8800
7800
6800
exports
($millions) 4400
2400
0
Citrus
Hi-Tech
ISRAEL ELECTRONICS & INFORMATION
INDUSTRIES
SALES & EXPORT (M$)
2,300
9,130
8,050
6,700
2,500
14,200
13,400
2,320
5,480
2,210
4,630
2,030
3,970
1,935
13,000
2,280
6,000
5,310
3,375
10,870
6,840
12,250
2,330
7,800
4,596
2,300
2,400
9,980
10,740
10,380
2,500
2,500
13,040 13,170
11,530
16,700
14,750
2,400
15,500
1,801
EXPORT
15,800
2,795
DOMESTIC
16, 000
15, 000
14, 000
13, 000
12, 000
11, 000
10, 000
9, 000
8, 000
7, 000
6, 000
5, 000
4, 000
3 ,000
2,000
1, 00
00
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
EST.
Start-ups – The emerging
economy force
Israel is one of the largest world centers
for start-up enterprise, with +3,000
start-ups.
Innovative
Technology-intensive
Representing technology breakthrough
Industry
Start-Ups – The Emerging Economic Force
Israel Enjoys
the Highest Concentration
of High-Tech Companies
Outside of the Silicon Valley
Robert Greifeld President & CEO NASDAQ 2004
The Driving Forces
Israel’s unique advantage
Government commitment for industrial
growth, R&D
Highly skilled workforce
High concentration of VCs and capital
markets
Transition from Military to Civilian Markets
I.D.F. – Entrepreneurial Spirit
Educational Levels
Israel has the highest ratio of University degrees
to the population in the world
Israel has the highest percentage in the world in
PC’s per capita
40% of the recent immigrant opulation hold
academic degree
Facts & Figures
Core Technology-Innovating Economies, 2003
Israel Ranks 4 Out of 103 Countries
1
USA
2
Japan
3
Taiwan
4
Israel
5
Switzerland
6
Sweden
7
Finland
8
Germany
9
Canada
Singapore
10
Source: The Global Competitiveness Report 2004-2005
Doing Business In Israel
Recent M&A
Israeli
Company
Technology
Acquirer
Sum
Time
Terayon
Communication
Systems Inc.
Communications
Aris
$345M
09/2005
Scitex Vision
Ltd.
Printing
HP
$230M
08/2005
Sheer Networks
Ltd
Communications
Cisco
$122M
07/2005
Siliquent
Technologies
Inc.
Communications
Broadcom
$84M
07/2005
Life Sciences
West
Pharmaceutical
Services Inc.
$42M
07/2005
Life Sciences
McKesson
Corp. Life
Sciences
$105M
06/2005
Medimop
Medical Projects
Ltd.
Medcon
Telemedicine
Technology Ltd.
Doing Business In Israel
Recent M&A (cont.)
Israeli
Company
Technology
Acquirer
Sum
Time
Impulse
Dynamics
Healthcare
Johnson &
Johnson
80M$
05/2005
Siliquent
Semiconductors
Fabless
Broadcom
~85M$
05/2005
Tecnomatix
Software
UGS Corp
228M$
04/2005
Kagoor
Voiceover Internet
68M$
03/2005
Savient
Biopharmaceutical
80M$
03/2005
OREX
Radiography
Medical
Equipment
Kodak
51M$
03/2005
Native Networks
Communication
Alcatel
~50M$
03/2005
Oplus
Technologies
Processors for
Digital Display
Devices
Intel
100M$
03/2005
Modem-Art
Semiconductors
Fabless
Agere Systems
150M$
02/2005
Juniper
Networks
Ferring
Holding SA
American Companies
Invested in Israel
• Microsoft
• Pratt & Whitney
• AOL time Warner
• Intel
• IBM
• Boeing Enterprises
• Cisco Systems
• GE
• Lucent
• 3Com
• Hewlett Packard
• Merrill Lynch
• Motorola
• Sun Microsystems
European Companies
Invested in Israel
• Siemens
• DaimlerChrysler
• Volvo
• Cable & Wireless
• Baan
• Volkswagen
• Deutsche Telekom
• L’Oreal
• British Telecom
• Danone
• Ares Sereno
• Unilever
Asian Companies
Invested in Israel
•
•
•
•
•
•
•
Samsung Electronics
Daewoo
Nomura
Hutchison Telecomm.
Nissho Iwai
LG Group
New Margine (VC)
•
•
•
•
•
•
•
Sony
Toyo Ink
Hyundai
Acer Computers
Sumitomo Trading
Fuji
Honda
THE ADVANTAGES OF DOING BUSINESS IN ISRAEL
Technology Leadership
“Israel has a spectacular people, great
energy, unique intelligence –
an ability to solve problems”
Christopher Galvin, CEO ,Motorola
Doing Business In Israel
Technology Leadership
“
Thanks to quality education,
Israel is one of the most
advanced countries in the world.
… Israel is advancing in high-tech
even more than
other developed countries
”
Bill Gates, CEO Microsoft, World Economic Forum, Davos, January 2000
Doing Business In Israel
Technology Leadership (cont.)
“
Israel’s market is relatively large
and sophisticated, it boasts the world’s
greatest per capita number of engineers,
scientists and doctors.
The Israeli economy is simply a reflection
of the country’s greatest natural resource which is the brainpower and ingenuity
of its citizens
Mike Zafirovski ,COO,Motorola 2003
”
Conclusion
•
Outstanding Human Resources
• Global Economic Orientation
• Stability
• Modern Hi-Tech Infrastructure
• Supportive Environment
Eran Davidson