ISRAEL 
HIGH-TECH & INVESTMENT REPORT

from the May 2004 issue


Perstare et Praestare!

"To move forward, Israel and its venture industry must more firmly embrace the global marketplace. Israel needs to promote itself in a more positive light to attract foreign investment and partners. The Israeli government must act to accommodate an easier flow of technology, investment and professional services across its borders to encourage commercial growth. Israeli venture investors need to reach out to quality US investors and others, to find new means of cooperation and to leverage the reach of Israeli venture funds.

Israeli companies operating in the US should be encouraged to adopt corporate advance successful exit opportunities. Finally, Israeli venture investors would be wise to actively pursue opportunities in China and elsewhere in Asia - either with US partners or on their own - to take advantage of those emerging markets. From my perspective, Israel can and should be more than a supplier of new technology solutions. Israel should strive for leadership in the global technology marketplace," stated attorney Gary L. Benton, a corporate lawyer and a partner with Coudert Brothers. He is based in the firm's Palo Alto, California office. We have met him on one of his many visits to Israel.

In turn, we would like to point out to you Gary and others like you, that over the 56 years of Israel's existence we have acted on advice from our friends and we will continue to do so.. In spite of occasionally stressful conditions Israelis have managed to be both creative and constructive. Perstare et Praestare. Persevere and Excel sums it all up. We are not without faults nor are we unaware of our shortcomings. However, on birthdays we like to take the liberty to list some of our achievements.

Israel, the 100th smallest country in the world, with less than 1/1000th of the world's population, can lay claim to the following:

    The cell phone was developed in Israel by Israelis working in the Israeli branch of Motorola, which has its largest development center in Israel.

    Most of the Windows NT and XP operating systems were developed by Microsoft-Israel.

    The Pentium MMX Chip technology was designed in Israel at Intel. Both the Pentium-4 microprocessor and the Centrino processor were entirely designed, developed and produced in Israel.

    The Pentium microprocessor in your computer was most likely made in Israel.

    Voice mail technology was developed in Israel.

    Both Microsoft and Cisco built their only R&D facilities outside the US in Israel!

    The technology for the AOL Instant Messenger ICQ was developed in 1996 by four young Israelis.

    According to industry officials, Israel designed the airline industry's most impenetrable flight security. U.S.officials now look to Israel for advice on how to handle airborne security threats.

    Israel has the highest percentage in the world of home computers per capita.

    Israel has the highest ratio of university degrees to the population in the world.

    Israel produces more scientific papers per capita than any other nation by a large margin - 109 per 10,000 people - as well as one of the highest per capita rates of patents filed.

    In proportion to its population, Israel has the largest number of startup companies in the world. In absolute terms, Israel has the largest number of startup companies than any other country in the world, except the U.S. (3,500 companies mostly in hi-tech).

    With more than 3,000 high-tech companies and startups, Israel has the highest concentration of hi-tech companies in the world - apart from the Silicon Valley, U.S.

    Israel is ranked #2 in the world for venture capital funds right behind the U.S.

    Outside the United States and Canada, Israel has the largest number of NASDAQ listed companies.

    Israel has the highest average living standards in the Middle East. The per capita income in 2000 was over $17,500, exceeding that of the UK.

    On a per capita basis, Israel has the largest number of biotech startups.

    Twenty-four per cent of Israel's workforce holds university degrees - ranking third in the industrialized world, after the United States and Holland - and 12 per cent hold advanced degrees.

    Israel is the only liberal democracy in the Middle East.

    In 1984 and 1991, Israel airlifted a total of 22,000 Ethiopian Jews at risk in Ethiopia, to safety in Israel.

    When the U.S. Embassy in Nairobi, Kenya was bombed in 1998, Israeli rescue teams were on the scene within a day - and saved three victims from the rubble.

    Israel has the third highest rate of entrepreneurship - and the highest rate among women and among people over 55 - in the world.

    Relative to its population, Israel is the largest immigrant-absorbing nation on earth. Immigrants come in search of democracy, religious freedom, and economic opportunity.

    Israel was the first nation in the world to adopt the Kimberly process, an international standard that certifies diamonds as "conflict free."

    Israel has the world's second highest per capita of new books.

    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 because this was achieved in an area considered mainly desert.

    Israel has more museums per capita than any other country.

    Medicine... Israeli scientists developed the first fully computerized, no-radiation, diagnostic instrumentation for breast cancer.

    Researchers in Israel developed a new device that directly helps the heart pump blood, an innovation with the potential to save lives among those with heart failure. The new device is synchronized with the heart's mechanical operations through a sophisticated system of sensors.

    Israel leads the world in the number of scientists and technicians in the workforce, with 145 per 10,000, as opposed to 85 in the U.S., over 70 in Japan, and less than 60 in Germany. With over 25% of its work force employed in technical professions. Israel places first in this category as well.

    A new acne treatment developed in Israel, the ClearLight device, produces a high-intensity, ultraviolet-light-free, narrow-band blue light that causes acne bacteria to self-destruct - all without damaging surrounding skin or tissue.

    An Israeli company was the first to develop and install a large-scale solar-powered and fully functional electricity generating plant, in southern California's Mojave desert.

    Israelis have developed two blockbuster pharmaceuticals - Copaxone and Rebif.

    Israeli engineers have developed miniature video cameras that are being applied for diagnostic testing.

    Israeli cardiac stents have been adopted by major American medical firms.

Happy 56 Birthday !



Reprinted from the Israel High-Tech & Investment Report May 2004

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