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How did Israel become one of the most technologically advanced Countries?

Over the past few decades, Israel has established itself as one of the most technologically advanced countries in the world. With a population of just over 6 million, there are an incredible number of more than 4,000 technology companies in this country.

Cisco, PayPal, Microsoft, Google, Facebook, Apple, and Intel are just some of the companies that are working on new products in Israel. But how did this poison in the Middle East sidestep the war and bring about a technological revolution in the world? How did they get the technology world into their own hands? Let’s get to know that.

Science and technology in Israel are one of the country’s most developed sectors. Israel spent 4.3% of its gross domestic product (GDP) on civil research and development in 2015, the highest ratio in the world. In 2019, Israel was ranked the world’s fifth most innovative country by the Bloomberg Innovation Index. It ranks thirteenth in the world for scientific output as measured by the number of scientific publications per million citizens. In 2014, Israel’s share of scientific articles published worldwide (0.9%) was much higher than its share of the global population (0.1%).

Silicon Valley, Tel Aviv’s Center for Technology Entrepreneurs; Image Source: PYMNTS

There is no doubt that Israel is the most controversial state in the world. Conflicts, whether religious or political, are inevitable when it comes to Israel. We will try to shed some light today. This country has made remarkable strides in science and technology, and today’s keynote address examines this success.

Israel is home to major companies in the high-tech industry and has one of the world’s most technologically literate populations. As mentioned earlier, there are more than 4,000 tech companies in Israel, including some of the world’s largest companies. Israel has 60 of the world’s top 500 tech giants with research centres and new technology centres in Israel! Tel Aviv, the capital of Israel, is one of the largest technology centres in the world, right next to Silicon Valley in the United States in terms of tech startups. Israel is even number 3 on the Nasdaq Stock Exchange, which is made up of shares of US-based tech companies, with only the United States and China topping the list. Israel is also behind the list of combined technology companies of Germany, Spain, Italy and France!

Let me give you some examples. Right now, most of the hardware for the next model of iPhone is being made in Israel. China may be ahead in terms of production, but Israel is at the forefront in terms of researching new technologies, inventing them and making them a reality. These Israelis have created many of Google’s new technologies. Intel, the world’s largest processor maker, is also in need of Israeli researchers to study microchips. The Intel factory in Israel employs more than 11,000 people, making it one of the largest technology factories in the country. Bill Gates’ Microsoft is also considered a semi-Israeli company, meaning that Israeli technicians have also contributed to the development of Windows software running on your computer.

The most surprising thing is that a large part of Israel’s income comes from this technology sector. The money earned from the research and development sector of big companies including IBM, PayPal, Cisco, Amazon, Facebook and the import of technology is 12.5% ​​of Israel’s GDP! Now you must be wondering how Israel achieved this capability. Let’s hear them.

Yazma (יוזמה)

The 1990s were considered the worst ten years in Israel’s history, especially in terms of the economy. Every year, the economy collapses due to almost 100% inflation, the budget deficit and the burden of debt on the foreheads of people in every corner of the country. In short, the Israelis have to rely entirely on foreign aid to survive. Towards the end of the decade, Israel was trying to recover from this catastrophic situation, when about 600,000 Jews emerged from the shattered Soviet Union. While the numbers may seem small, they were enough to make Israel’s plight worse at the time. Now the cause of Israel’s headaches is the same – how to create jobs for so many unemployed people? There is only one way in the hands of Israel, to overhaul the whole economic system.

At first, the Israeli government tried to get entrepreneurs to take on new types of initiatives, but in a country where there is no money, how can new entrepreneurs come forward? And who will invest their valuable money in a tumultuous country like Israel? And then the government realized that the only way to overcome this situation is to invest in international companies. And that’s where the ‘Yazma Program’ started.

IDF opens new track for religious women in Cyber Defense Directorate; image Source-The Jerusalem Post

Yazma in Hebrew means initiative. Under the scheme, the Israeli government created 10 funds worth 100 million. The Israeli government will invest% 8 million in the company 12 million investment in the foreign company and retain 40% ownership of the company. If there is a profit from this, then the foreign company can become the owner of the whole company by paying the government money with little interest, that is, the whole profit for the investors. On the other hand, the Israeli government does not seem to be making any profit, but the tax on new companies and employment will offset the government’s investment costs.

And the actual results of this plan could not have been better. International companies began to invest in Israel, with money allocated to implement any idea. In the first eight years, the number of funds stood at 20 to 513! And the results? Israel is now seen as the capital of entrepreneurs, and according to statistics, the amount of investment behind each employee of each company is increasing by 150$ per year. By comparison, this is 40 times more than investing in a Spanish entrepreneur! And not only money but also mountains of experience are being added with money.

Immigration Policy

Jewish return to the Land of Israel; Image source-Wikipedia

The population of a country is dependent on immigrants, the answer to that question will undoubtedly be Israel. In fact, one in three Israelis is born abroad! And 9 out of every 10 people are immigrants and children of immigrants. And this proves how the population of a country has increased tenfold in the seventy years of independence. According to the Constitution of Israel,

Every Jews has the right to live in Israel

-Return Act, Section 1

And if you think this policy is a trivial matter, you will be wrong. According to the survey, the more immigrants a country has, the richer it is. Because immigrants are more likely to take the initiative. Moreover, these Jewish conferences, which grew up in different cultures around the world, have played a major role in bringing out new ideas.

Education System

Israel is #2 in the world for the number of students who go to university. Wondering who is number 1? Canada. The main reason for Israel’s great success is its education system. In 1948, 30 years before the founding of Israel, the Jews established The Hebrew University of Jerusalem in Jerusalem. Israel is currently at the forefront of college degrees. And what sets Israel apart from other countries is its universities.

Students in a laboratory in Israel; Image Source-Tel Aviv University

Each university in Israel operates as a research institute. Each university is again funded by various foreign institutions. As a result of studying at the university, a student not only receives an education but also introduces himself as a professional researcher. As a result, an entrepreneur comes out of his student days, with all the wonderful ideas running through his head. Through these researches and innovations from universities, Israel has established itself as one of the most technologically advanced countries in the world.

Since the devastation of the 1980s, Israel has doubled its population, quadrupled its employment, and surpassed developed countries such as Spain or Italy in terms of GDP. After all, they have brought the world of technology into their own hands. The present age is the age of technology.

Research and Development centre

Except for universities, Israel has seven R&D centres in the periphery. These centres were established by the Ministry of Science and Technology, and include Migal and the Dead Sea and the Arava science centre. Their orientation is based on applied science and the dissemination of scientific knowledge to the general population. To date, seven centres are working with significant academic impact and relevance to the region.

Without the development of technology, the development of any country is almost impossible. Will other countries look to Israel for technological advancement as a model? What do you think?

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