(Telegraph-UK) Luke Johnson - Israel has reinvented itself in the past 15 years as an extraordinary hub of innovation - despite the Palestinian conflict. The roots of its economic success lie in its connections to America and its significant industrial-military strength. U.S. software, telecoms, and electronics industries have invested heavily in Israel, taking advantage of tax breaks and a skilled workforce, and stimulating hundreds of spin-off ventures. America also taught Israel the importance of venture capital. Today it has 80 local VC funds which manage more than $10bn - the second largest pool of such risk capital in the world in a nation with fewer than 7m people. The economy has grown at rates of up to 6% annually in recent times. GDP per capita at $19,000 is now higher than Spain, Portugal, or New Zealand. Israel is yet another example of a small nation which has outperformed much larger countries endowed with far greater natural resources: Singapore, Ireland, and Switzerland are other cases in point. Each demonstrates that intellectual capital is the most important asset any state can possess.
2005-10-03 00:00:00Full ArticleBACK Visit the Daily Alert Archive