ISRAEL 
HIGH-TECH & INVESTMENT REPORT

- from the July 1998 issue


FOR COMPUTER NERDS THE LAND OF PROMISE TURNS INTO THE PROMISED LAND

The increasing demand for electronic engineers and Information Technology experts by Israel's high-tech industries is a pressing issue for the academic administrators as the Technion Institute of Technology. The Technion is preparing to celebrate its 75th birthday while Israel is celebrating its jubilee anniversary. In 1948 as modern Israel was born the Hebrew University in Jerusalem and Technion in Haifa were the only available universities for those seeking higher education. The Technion's student body numbered 676 including 39 women. Of the total 660 served in the army which protected the young state from attacks by its neighbors. During that turbulent period, in contrast to today's conditions, there was little assurance that a student who earned an engineering degree would find a job.

Last month Technion President Zehev Tadmor hosted a group of international journalists, presented the Technion and introduced us to the university's leading educators and researchers. The Technion's student body is a remarkable 11,800. (equivalent to the number of students enrolled at Massachusetts Institute of Technology) . "Over the past two years we have increased our student body by 40% and every graduate found a good job," emphasized President Tadmor. Degrees in medicine, computer science and electronic engineering are in greatest demand. Israel has the highest number of doctors per 1,000 population and soon it may apply to electronic engineers and software specialists.

It is not only the availability of good jobs for graduates which draws so many students to the Technion. An additional allure is the prospect of "striking it rich". Israel's Biblical name is the "Promised Land" but as it heads towards the next century it is appropriate to call it the "Land of Limitless Opportunity". For many years talented Israelis after completing their army service attended universities long enough to earn a degree and then emigrated to the United States in search of economic opportunity, personal recognition and success. Arguably Yitzhak Rabin, during his first stint as Prime Minister derisively labeled these individuals as "yordim" (those who "went down"). In his mind emigration was unacceptable but then he refused to come to terms that with the issue of a lack of opportunity for "making it big" in this country. . Since the 1990s the situation has drastically changed for the better. High-tech startups, the nurseries of technological innovation, matured and their products find acceptance on international markets. Investment bankers sold the shares of these companies to the American public. As a result many of the founders of the high-tech companies discovered the taste of "instant riches". This success served as a magnet and Israeli engineers who were working in the fabled Silicon Valley returned to their native land. They assessed correctly that Israel of the 1990s offered both an outlet for their talents as well as the prospect of financial rewards.

The most recent instance is of the three computer nerds, in their early 20s, who spent three years developing a software program that allows a computer user to know in real time which of his buddies are logged into the Internet, is a case in point. The 'clever-idea-software' developed by the young computer specialists has reportedly drawn 12 million users and has attracted a buyer for their company by the giant America Online, the leading US Internet Service Provider. America Online announced in mid-June that it paid the unheard of sum of $287 million to acquire Mirabilis. The young men overnight become national heroes and undoubtedly have become a role model in Israel and even better known in Israel than the Spice Girls.

The social impact of this financial success may negatively impact the mores of a whole generation of young people who may substitute personal wealth as the measure of status in a society where doctors and judges still stand at the top of the list of "most respected professions".

Reprinted from the Israel High-Tech & Investment Report July 1998

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