For example, in 1948, Israel had two universities; today, with 62 institutions of higher learning, Israel has the highest number of university degrees per capita. With a GDP ranked 33rd by the International Monetary Fund, Israel’s economy is six times larger than it was in 1950.
Recently the minister of economy and industry announced plans designed to spur economic growth in hopes Israel will become the world’s 15th largest by 2025. We wonder, how can a country with just 8.5 million people surpass much larger countries?
One way is through innovation. Israel has become known as the “Start-up Nation” and is recognized as a leader in ag-tech, water-tech, bio-tech, med-tech, clean-tech, fin-tech, cyber security, energy (including electricity and solar power) — all technologies that have a positive global impact.
Israel averages 640 new startups per year dating back to 1999. That’s more than 5,000 startups in that time and the greatest concentration of high-tech companies outside Silicon Valley, according to the Bank of Israel. And while most startups in the U.S. don’t make it to their fifth anniversary, since 2008, a majority of those Israeli startups are still in business.
Here are five best practices from Israel we think can be applied here at home:
1. Adopt an optimistic mindset and rebrand the Midwest. In the words of Israel’s first prime minister, David Ben-Gurion, at the establishment of the state of Israel 70 years ago, “In Israel, in order to be a realist you must believe in miracles.” Since then it has, indeed, been creating miracles, such as transforming itself into the Start-up Nation, a technology superpower and a world-class economy. The Midwest is a region with a robust and thriving business, financial and technological ecosystem. Each state has particular industry expertise and excellence, and we believe the region should be rebranded as Silicon Prairie. Just as the Start-up Nation has done, Silicon Prairie — comprised of Indiana, Nebraska, Iowa, North Dakota, South Dakota, Kansas, Oklahoma, Texas, Missouri, Illinois, Wisconsin, Illinois, Michigan and Ohio — can leverage this network by bringing in new business opportunities, gaining international recognition and attracting the world’s leading technology companies.
2. Ensure industry and academic institutions work together. Israel gets businesses and academic institutions working together. For example, instead of feeling feel like they’re in an ivory tower, Israeli academic researchers work on projects funded by outside companies, with an emphasis on patents rather than journal articles, followed by concerted efforts by technology-transfer departments to find businesses that can commercialize the intellectual property.
3. Get government support. State governments can foster innovation ecosystems. For example, the Israel Innovation Authority (IIA) supports 24 different incubators covering different technologies that provide a range of services for startups, including financial support providing such things as grants and loans for two years to help them gain traction. It is also important to maintain and upgrade infrastructure that supports the knowledge industry sector. Since networking is so important to Israeli business, the IIA offers partner matching services. That can be easily translated here.
4. Spur entrepreneurship as a career path. With a culture that demands independence combined with chutzpah, the Yiddish word for nerve and self-confidence, Israeli students are encouraged to become entrepreneurs rather than find jobs in pre-existing companies. It takes chutzpah and innovation to attempt to solve global challenges such as drought, water efficiency and irrigation, crop productivity and protection while also developing organic pesticides, and farm-specific robotics. According to AgFunder, a U.S. website covering agricultural startups, there are more than 400 Israeli agtech startups — that’s chutzpah.
5. Network for innovation. In Israel, ideas often emerge during conversations with people from their networks — if you’re open about where innovation comes from. Some say Israel is successful because it has a tight network. Midwestern states can replicate this, and scale across a regional network as it transforms itself into the Silicon Prairie.
Through a combination of these values and applying the lessons from the Start-up Nation, we, in the Silicon Prairie, can build our own entrepreneurial and innovation ecosystems. We can evolve into a national and international technological superpower, and we can make our own, positive global impact if we heed the words of Israel’s founding father, Theodor Herzl: “If you will it, it is no dream.” The people of the Silicon Prairie have the will. Welaunch has the platform. And together we will realize this dream.
Welaunch is a U.S.-based nonprofit introducing Israeli technology startups to corporations, investors and research partners as a platform for economic development, Jewish community engagement and Israel innovation education. Rabbi Baruch HaLevi, D.Min, is co-founder and CEO. Margie Robinow is senior vice president of business development of welaunch, as well as CEO of Robinow Group Consulting. For more information visit www.welaunch.org or email Baruch at .
