Transcript Israel - Dr. Th Chowdary

Start-up Nation
Story of Israel’s Economic Miracle
Authored by Dan Senor & Saul Sanger
By
Dr T.H.Chowdary
Director: Center for Telecom Management and Studies
Chairman: Pragna Bharati (intellect India )
Former: Chairman & Managing Director
Videsh Sanchar Nigam Limited &
Information Technology Advisor,
Government of Andhra Pradesh
T: +91(40) 6667-1191(O) 2784-3121®
F: +91 (40) 6667-1111
[email protected]
Talk @ TCS : Hyderabad , 24 June 2010
Israel
• Israel refounded on May 1948 after about
2000 years of expulsion of its people by
Imperial Rome.
• UN Partition Resolution of Nov 1947 to create
2-States Israel & Palestine on surrender of
League of nations Mandate by Britain unable
to cope with 3-sided battles- Jews X Arabs X
British Soldiers
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1949
1948-49 War
Israel
Arab territory
• Arab nations attack in
1948, soon after Israel
declares independence,
spawning the Palestinian
refuge crisis. Israel wins
both the war and territory
1967
The Six-Day War
Israel
Occupied
territories
• Egypt, Jordan and Syria
mobilize against Israel,
which thwarts the attack,
taking over the West
Bank, Sinia, Gaza and the
Golan Heights.
Eretz Israel
• Israel is home to about 4 million immigrant Jews from over 100 countries
& 75 nationalities , most form former USSR after collapse of communism
• Revived Hebrew, the common language Hebrew, Arabic, Russian, English,
German, Marathi & 15 other languages for a population of 7 mln (up from
0.8 mln ion 1948)
• Greatest Asset : Brain Power
• Will to survive, thrive & triumph victory or death: NO DEFEET
• About 10 political parties for 7 mln (i.e 1500 parties in India – Actually 740
are Regd. In India)
• Israel’s population 808K in ‘48 2.4 m in ’51
• 1990-2k Russian Jews 800K came
• 150K Iraqi Jews
• 500 K Jews in Arab world
• 49K Yemeni Jews
• 41K Romanian Jews paid $ 112.5 mln, $ 2800/per sec
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The Start-up Saga
• 3850 start-ups, one for 1844 Israelis (India
should have 6,16,000 start-ups)
• More Israeli companies listed on NASDAQ
than all companies from the European
continent ( 7 ml pop Vs 600 mln)
• In 2008 per capita venture capital in Israel was
– 2.5 times USA; 30 times Europe;
80 times China; 350 times India!
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$ US
Venture Capital Investments per Capita
Source: The book, Start-up Nation- The Story of Israel’s Economic Miracle by Dan Senor and Saul Singer
(Source:
Dow Jones, Venture Source: Thomson Reuters;
U.S. Central Intelligence Agency, World Fact Book, 2007, 2008
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Percentage(%) of GDP
Civilian R&D Expenditure
(2000-2005)
Source: The book, Start-up Nation- The Story of Israel’s Economic Miracle by Dan Senor and Saul Singer
Source: UNDO (United Nations Development
Programme) Report, 2007/2008
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Number of companies
Companies on NASDAQ (2009)
Source: The book, Start-up Nation- The Story of Israel’s Economic Miracle by Dan Senor and Saul Singer
THC_CTMSSource: NASDAQ, http: www.nasdaq.com/asp;
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nonUsOutpur.asp.may2009 and
% change on previous year
GDP Growth Rates
Source: The book, Start-up Nation- The Story of Israel’s Economic Miracle by Dan Senor and Saul Singer
(Source: “Miracles and Mirages,” Economist, April 13, 2008; “GDP Growth Rates by Country and Region,
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1970-2007,” Swivel, http://www. Swivel.com/data_columns/spreadsheet/2085677
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Some Brilliant Ideas for Start-ups (1)
• Oil-less world; co: Better place (All) Electric
cars; Charging grid
• A million parking place grid
• Agassi raised $200 mln; 5th largest start-up in
the world.
• Agassi’s Top-Tier start-up sold for $ 400 mln to
SAP for Better place.
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Some Brilliant Ideas for Start-ups (2)
• Pay Pal, the largest Internet payment system in the
world
• Fraud sciences co invented the Pay Paul
• e-Bay $18 bln sales, 16,000 employees around the
world
• Check- point: Israel start-up is $ 5 bln worth
• Intel’s largest R&D unit located in Israel, headed by
Israelis.
• Google: Founder –Sergey Brin Russian Jew in US
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Some Brilliant Ideas & Start-ups (3)
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CISCO’s R&D centuries in 1997- 1st outside US
Fastest Router CRS#1
Library of Congress download in 4.6 secs (a dial-up modem will take 82 years)
CISCO spent $ 1.2 bln to buy & invest in Israel
ISCAR: Israel’s machine tool company Warren Buffet, 2nd richest in world 52 hrs in
Israel, bought ISCAR for $ 4.5 bln – supplier to 67 countries
Intel: Froman (Jew) left new design center in Haifa in Y 1974 with 5 chip design
– Invest $ 3.5 bln
– 30 mn Xtors on a pin-head
(Y 2006 Lebanon fired 4228 rockets in 60 days; 70/day)
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Venture caps: BIRD, GEMINI :
– Invested $ 250 mln in 780 projects
– Sold: $ 8 bln ( 32 fold gain)
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Israel venture Assn.
– 45 venture capital funds
– 240 venture companies investing in Israel
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Some Brilliant Ideas for Start-ups (4)
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The price of dependence – Charles Degave after 1967 war
The Merkava Tank – 1978 Roll-out now 4th Gen
Nesher- Israel’s version of Mirage
KFIR first flown in 1973 (bombed Iraq)
Lavi fighter Jet
Implantable, artificial pancreas to treat diabetes
PilCAM: 18 photos/sec, for hours from deep within the
intestines ( gastro-intestinal tract)
Olympus makes cameras in a pill
• Compugen – Human genome sequencing
- Merck bought this co
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Some Brilliant Ideas for Start-ups (5)
• Aespironics : Inhaler, credit card-sixe includes
a breath powered wind turbine
• Beta : 0: implantable “bio-reator” to replace
the defective pancreas in diabetes patients
• TransPharma Medical: Drug delivery thr’ skin
w/o injection
• Pixar: Animation
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Arab Wars on Israel - Yet
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Wars: 1948,56,67,73,82 & 2006
1967: Israel captured 3 times its area in Palestine
Syria & Iran want to wipe out Israel off the face of eth world!
Terrorists’ all the while
1948-’70: GDP quadrupled population Tripled
1800 Jews joined allies in WWII (1939-’45)
Kibbutz 80K people in 250 Kibbutz
2% Kibbutz produced 12% of exports
1981 Israel bombed & destroyed Iraq’s Nuclear facility & vous
to do like-wise to Iran (Saudi’s, Egypt, Jordan, Bahrain etc
agree!)
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Specialisations
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Israel Aircraft Industries
Drip irrigation in 1965 Netafim the global drip irrigation company
95% arid or hyper arid
70% of waste water is recycled ( 3 times the 2nd place Spain with 23%)
Negev – dugh half a mile, deep bore; came warm, sultry water.
Prof Samuel Applebeum –Praise warm water
Fish! 98o water in ponds
-Tilapia, barramuudi, sea-bas
Mark Twain called it “ Barren Waste land” now there are 240 mln trees;
35/person; 4 mln trees in Negev
Only country where desert is receding because of trees
Forests on 12% of world’s arid lands will reduce carbon by 1 giga
ton/year=1000, 500 MW coal plants
Israeli economy grew – PCI 25% of US in 1950
60% of US in 1970
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Remarkable Achievements (1)
• Av. Standard of living in Israel in 1948 was equal to
USA in Y 1800
Increased 50 fold in 60 years!
(India 18 times)
Unmatched in the history of the world despite
fighting 5 wars and continuous terrorism
• In 25 y, Israel increased Agri yields 17 times – 95%
science; 5% work
• As of Y2005,israel is the 10th largest producer of
nuclear patents
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Remarkable Achievements (2)
• Cell phone density 125% (India 60%)
• Y 2002-’05: Number of books xlated into Arabic in all Arab countries
combined was 1/5 the number xlated into Greek in Greece
• 1980-2000 patents regd.
• Israel- 7652; S.Arabia- 171; Egypt-77; Kuwait-52; UAE-32; Syria-21;
Jordan-15
• Arabs have 200 varsities; Israel -12
• Exports $ 18.1 bln I India $ 190 bln should be $ 2700 bln)
• Publications: Economics: UK-2; Israel-I
• Jews were 2% of Russia’s population, but 30% of doctors & 20% of
engineers were Jews.
• Israel has highest number of doctors/1000 population in the world.
• Nation of Immigrants
• Not brain-drain, but brain circulation
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Nobel Prizes
• Jews around the world -167
• Jews in Israel (since 1948) -9
• USA*-320; UK*-117; France*-57; Russia- 23;
Italy-20; Japan-16; Indians+-9; China-6
• 3000 Israeli Professors abroad
* includes Jews with that country’s nationality
+ 2 are Indian citizens, 6 Indians outside India
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Source of Venture
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Israel Defence Forces:
Failure is not sigma
Bernard Shaw :
If you have an apple and I have an apple and we
exchange apples, then you and I will still each have
one apple. But if you have an idea and I have an idea
and we exchange these ideas, then each of us will
have two ideas
• Talpiot- Pinnacle of Achievement comes from Bible’s
Song of Songs
• IDF elite Intelligence Unit- 8200
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Talpiot- Pinnacle of achievement
(From Bible’s Song of Songs)
• Trigger: Debacle of the 1973 Yom Kippur War
• Most intensive technology Trg, that varsities &
Military can offer.
• Each year top2% (2000) of Israel’s High School tried
• 10% (200 pass; put thro’ 2 days of personality and
aptitude test
• Accelerate varsity degree in Maths & Physics while
introduced to tech needs of all branches of IDF.
• Tested to penetrate a telecom network of a live
terrorist cell
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Talpiot- Pinnacle of achievement
(From Bible’s Song of Songs)
• “Talpions” (like our IITians and more)
• Only 650 in 30 years!
• Are some of Israel’s top academics & founders of Israel’s most
successful cos.
• Eg: NICE- global corp. behind call monitoring sued by 85 of
top 100 of Forbes’.
• COMPUGEN – Human Genome decoding
• 45% of Israelis are varsity educated- highest in the world
• 109 scientific papers/ 10,000 people
• $ 6.0 bln education/scholarship fund.
• Has the largest number of scientists & engineers/ mln Pop.
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Dhanyawad:
Thank You
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