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Israeli R&D Israeli R&D -- Macro Economic ViewMacro Economic View

Eugene KandelEugene Kandel

Head of the National Economic CouncilHead of the National Economic Council

January 2012January 2012

R&D: Driver of Israeli Economy

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Source: OECD

R&D: Driver of Israeli Economy

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Information technology skills

Entrepreneurship

Scientific research

Innovative capacity

Source: The Institute for Management Development IMD 2011 (out of 59 countries)

Government R&D Support

Israeli R&D is mostly financed with private funds

Public resources are spent where they add the most value:

Promoting novel technologies

Leveraging existing resources

Specific high risk stages

International collaboration

Coordination in entering new fields (“big push”)

The governmental support is especially important during

financial turmoil and shrinking private investments

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Horizon 2020- Adapting to a Changing World

Demographics

Urbanization

Shift in economic power

Environmental concerns

Challenges to sustainable supply of energy, food and

water

Israel R&D needs to adapt!

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Export Destinations (percent of total export)

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India

Europe

Others

China*

US

* Including Hong Kong

Israel: Providing Solutions

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Food

Energy Water

Innovation is Only Part of the Process

Small economy VS. Large economy:

Research infrastructure and ability to develop

large fields

Scale up

Access to markets

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Joint R&D as a Bridge to the Developing World

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Israel

Europe

Developing World

Joint R&D as a Bridge to the Developing World

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Israel

Europe

Developing World

Joint ventures

Israel and ISERD

Rapid changes in technologies

Economies of scale in research policy

Israel wants to be a part of major trends dictated by

the leading economies and markets

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ISERD as a Platform for Coordinated R&D

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