CLaudia Magrina

Israel, the Startup Nation

CLaudia Magrina
Israel, the Startup Nation

How is it possible that Israel, a country of 7.1 million inhabitants, 60 years old, surrounded by enemies, in a constant state of war since its foundation, without natural resources, produces more start-ups than large, peaceful nations? and stable countries as Japan, China, India, Korea, Canada and the United Kingdom?

To understand the effect we have to start from the beginning and the base: the people.

Newcomers to Israel tend to think that the people there are quite rude. The Israelis ask direct questions to anyone they have just met, perfectly fulfilling what is usually said about the Jews; "Two Jews, three opinions"

Undoubtedly, it is a country driven by the culture of adversity, which reduces hierarchies and increases spontaneity. In a world where economies as diverse as Singapore, Ireland or Dubai have tried to recreate the "Israel Effect".

But let's go in parts to understand this phenomenon:

1. Restless people who returned to their land without anything to lift it based on effort and innovation since the lands were arid. The Kibbutz became an incubator and the farmer a scientist. Technology in Israel was born from agriculture. Although they had little land and almost no water, Israel became an agricultural leader, with the secret of this miracle, 95% lies in technology.


2. Mandatory military service: the state of Israel was attacked seven times in its first sixty-two years of existence. He did not receive help from foreign troops and the only way to confront the quantum superiority of his attackers would be to outdo them in courage and technology. This creativity applied to security tools also served to cement the civil industry. Military development often has a double objective; The nautical euro can be applied to both the military and civil parties. So the army became a technological incubator that allowed many people to work with sophisticated equipment, gain experience in management positions and networking for future projects.


3. The Intel Israel team found the revolutionary solution and radically transformed the company betting on the low consumption of processors versus the American idea of aintaining speed with overheating in computers. This shows that something more than a good idea is needed to convince an intransigent management team.

4. The motivation of the country: The creation of a cluster that produces an exponential growth for their communities because the people who live and work within are interconnected in some way with each other.

A good example is the wine cluster in Northern California, where there are hundreds of wineries and thousands of independent winemakers. There are also manufacturers of equipment for irrigation, producers of barrels or designers of labels for wine, not to mention the amount of communication media such as communication agencies of wineries or specialized publications. The headquarters of the University of California has a wine program known throughout the world.


The economy of Israel and many Arab countries function as real-life laboratories that put the theory of clusters into practice and serve as a barometer to measure what causes a region to generate or limit innovation.

Thanks to all these points, the start up nation continues to be the world leader in risk capital dollars raised per capita, 2.5% more than the next country on the list, the United States.