Many think the heydays of the Silicon Valley are over after the 1990s dot-com boom busted, but that’s not necessarily the case for Israel’s hot tech epicenter. Known for its focus on research and development, the Jewish Nation has a history and – based on current incentive and financial policies – a future in producing some of the world’s most promising technology companies and innovations.
Based mostly in Tel Aviv and surrounding cities, Israel’s Silicon Wadi continues to be home to some of the brightest startups since its 1960s origins. Homegrown tech companies started up, and success came big in the late 1990s, when Israeli company Mirabilis created instant messaging software, which was purchased by AOL less than two years later,
according to AOL, Inc.
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However, while many big dreams faded in Silicon Valley, the success in the Jewish Nation resulted in public and private policies that funded and fostered continued tech ambitions. Israel invested heavily ($186 million) in academic-based research and national universities while private financing continues as well,
according to the OECD Science, Technology and Industry Outlook 2014.
In addition, friendly relations with the European Union (EU) helped bring additional grants – $1.2 billion, the OECD reports – to help EU countries operate and grow in the Jewish Nation.
These financial incentives are coupled with the realities of life in war-torn Israel, where water scarcity and dependence on oil-rich nations offer another level of motivation. Some of the most noteworthy innovations to come from the Jewish Nation include medical technology like bandages with simplified application and a miniature camera known as a Pill Cam to diagnose GI tract disorders, Israel21c.com wrote in a list of 64 top innovations created in Israel.
Israel is also the world leader in desalination technology, as nearly half of the nation’s drinking water sources rely on desalination,
according to The Times of Israel. Nearly every home there boasts a solar energy panel and solar water heater, they report.
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The boom is certainly continuing, with many new products being introduced and recent acquisitions bringing additional revenue to creative minds. With added government emphasis on academic research and progressive immigration policies, few question whether Israel tech interest is in a bubble that could someday burst.
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