‘Disruptive innovation’ is Israel’s most valuable contribution to global businesses. Israeli deep tech companies are changing the way corporates think, plan and grow.
Israel’s startup scene is booming! With a population of approximately nine million and home to some 6,500 start-ups, Israel has the largest number of startups per capita in the world. The country is well on course to transition from ‘start-up nation’ to ‘scale-up nation,’ with 40 plus Israeli-founded Unicorns.
250 foreign companies have set up R&D centres in Israel. More than 150 Israeli deep tech companies are engaged in advanced research and futuristic tech breakthroughs. Strengthened by government incentives, low-rate loans and the availability of highly trained human capital, Israel has become an attractive location for the research centres of leading multinationals.
But how did a tiny Mediterranean country get this distinction?
Israel has attracted a significant number of well-educated and well-trained immigrants from European and North American countries ever since declaring its statehood in 1948. Jewish investors from all over the world helped build universities and research institutions in Israel. It thus developed a core competency in advanced technologies as early as the 1960s. Israel’s start-up industry, which developed in the 1980s and ‘90s, has gradually evolved into a hub for deep tech innovation.
Many of Israel’s deep tech companies are founded by former members of the country’s elite military intelligence units. Students in Israel are exposed to advanced computer studies as early as age 13, and the pressure to become a techie is strong. Mandatory military service, quality education, risk tolerance, and a team-oriented atmosphere make Israel a fertile breeding ground for fast-moving tech companies.
Today, Israelis are reimagining and reshaping almost every sector, including cybersecurity, biotech, AI/VR, energy, machine learning, agritech, aerospace, defense and more. Increasingly, global tech giants are turning to Israeli deep tech companies for innovation work that impacts their core businesses. Israel’s list of ‘Big 10’ tech clients includes US-based Microsoft, Amazon, Google, Facebook, Apple. China’s Alibaba and Baidu and South Korea’s Samsung are also major players in Israel’s tech ecosystem. About 300+ other multinationals are also currently engaged with Israeli innovation.
Israeli startups too are widening their horizons. The US has traditionally been a huge market for Israel and continues to be a mainstay. Currently, over 900 Israeli start-ups operate in 28 countries throughout Europe, with 405 firms in UK alone, followed by Germany and France. There is a huge opportunity for Israel in Asia too, particularly in fast-growing sectors like automotive, cybertech, AI, fintech, IOT, telecoms and biotech.
Backed by Israeli deep tech, Asian companies can accelerate growth and focus on their core competencies. Onnivation helps bridge the gap between Israeli deep tech companies and the ASEAN companies with its unique, high impact and low-risk model.
