JERUSALEM — With a concentration of start-ups just behind that of Silicon Valley and an impressive pool of engineers, Israel is becoming the new standard for high-tech, with a unique business model.
Internet-related activities contributed 9 billion euros (12.6 billion dollars) to the Israeli economy in 2009, representing 6.5 percent of GDP, according to a report from management consultancy McKinsey.
The sector is worth more than the construction industry (5.4 percent of GDP) and almost as much as health (6.8 percent).
The web economy has also created a total of 120,000 jobs, accounting for 4 percent of the country’s workforce, McKinsey says.
From Microsoft to Intel through Google, IBM and Philips, almost all the giants of the Internet and technology have set up important research and development centres in Israel, spawning products and systems used worldwide.
“Israel is the country with the most engineers in its population, and it ranks second behind the United States in the number of companies listed on Nasdaq,” said David Kadouch, product manager at Google Israel, which opened its R&D operation in 2007 and currently has 200 employees.
Categories: Israel