Startup Nation SC

8/13/2019 Startup Nation SC

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STARTUP NATION:Israels Surprising Economic SuccessIn The Face Of Adversity

(And What It Means For SC)


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November 29, 1947 UN General Assembly votes to adopt

the UN Parti tion Plan

The first known Kingdom of Israel in this location wasin the 11thcentury BCE),

The majority of the world continues to question Israels

right to exist

Israel has a PR problem!

The State of Israel is a Startup


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Entrepreneurship is the backbone of the country

No known natural resources

Necessity is the mother of INNOVATION

Agricultural innovation

Military innovation

Infrastructural innovation

The State of Israel is a Startup


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Personal Computers

** Slide as produced by Jonathan Medved
http://www.appliedmaterials.com/index.html


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Consumer Electronics

http://www.harmonicinc.com/index.cfmhttp://www.optibase.com/http://www.m-systems.com/http://www.nds.com/homepage.htmlhttp://www.zoran.com/


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Medical / Life Sciences

http://www.tevapharm.com/about/http://www.givenimaging.com/Cultures/en-US/Given/English/http://www.medinol.com/index.html


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Telephony
http://www.nice.com/http://www.comverse.com/


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Software/Internet

http://www.rsasecurity.com/http://images.google.com/imgres?imgurl=http://www.jspwiki.org/attach/WikiMarkup/lock.gif&imgrefurl=http://www.jspwiki.org/Wiki.jsp?page=WikiMarkup&h=170&w=250&sz=10&tbnid=ydnDY7lalisJ:&tbnh=72&tbnw=106&hl=en&start=1&prev=/images?q=lock&hl=en&lr=&safe=off&rls=GGLD,GGLD:2004-26,GGLD:en&sa=Nhttp://www.symantec.com/http://www.retalix.com/index.html


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Compulsory Military Service

Global Orientation

Progressive Immigration Policies

Pro-active Government Policy

Persistence

Diaspora Community

Mash-Ups

The Secret Sauce


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What is important about mili tary service?

18 year olds spend at least 2-3 years serving

Development of critical leadership skil ls

Responsibil ity and accountability for the well being of others

Taught to question authority for improved outcomes

Willingness to take risks in the face of adversi ty

Persistence and desire to learn from mistakes

Development of military technology often converted to civil ian uses

Highly trained and educated workforce


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Very high-quality education infrastructure

Highest ratio of university degrees to population in the world

Bil l Gates:The quality of education is one of the key factors that has made Israel so

unique in the great companies and partners we've had...

Warren Buffet:

If you go to the Middle-East looking for oil, you do not need to stop inIsrael. But, if you are looking for brains, for energy and for integrity, theonly stop you need is in Israel.

Highly trained and educated workforce


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Progressive policy encourages immigration

Israel is built on successful integration of cultures

Mass immigration from former Soviet Union

Absorbed 5+% population increase in one year

58% were scientists, academic scholars, associate

professionals and technicians ( >2x the percentage of workers

in these fields)

A country of immigrants


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Yozma (initiative) 1993 VC pol icy

Offered attractive tax incentives for foreign venture capital investments

Promise of government to DOUBLE any investment with government funds

VC investment rose nearly 60-fold, from $58 mill ion to $3.3 billion (90-00)

VC-launched businesses went from 100 to 800

Establishment of incubator system to leverage approximately

750,000 scientists, engineers, and physicians arriving from former

Soviet Union (24 incubators today)

Pro-active government policy


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Government privatized the incubators

Policy of supporting R&D

Office of the Chief Scientist tasked with encouraging high value-added

R&D and collaboration nationally and internationally

This years budget for R&D suppor t:

NIS 1.42 bil lion -- approximately $375 Mill ion

Pro-active government policy


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Hi-tech center and culture of entrepreneurship

Hundreds of multi-national companies in Israel

Microsoft, Intel, Motorola, IBM, Google, Yahoo, etc.

Leading VC firms operate in Israel Sequoia, Lightspeed, Bessemer, NVP, Battery, etc.

Overall VC investment over $2 bil lion per year

Number 1 over all of continental Europe

Number 1 in the world on a per capita basis

In absolute terms, 2ndoverall only to Silicon Valley

Israel as a hub of innovation


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Relative to the population, largest number of startup

companies in the world

In absolute terms, largest number second only to US

Outside the US, largest number of NASDAQ-listed

companies

Israel as a hub of innovation


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Israel: Highest R&D spending as % GDP and per capita

Innovation we can emulate


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South Carol ina vs. Israel

So how do we compare?

South Carolina Israel Compared

Geographic Size 32,020 sq. mi. 8,019 sq. mi. 400%

Population 4.7 million 7.8 million 60%

GDP $166 Billion $245 Billion 67%

VC Investments $73 Million $2,139 Million 3%


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Back-to-back record years:

2010: $4.1 bil lion in Capital Investment and creation of over

20,000 new jobs

2011: $5.1 bil lion in Capital Investment and creation of over20,000 new jobs

Since 2006: Over $22 billion in Capital Investment

and creation of over 107,000 new jobs

Foreign Direct Investment

Over 72% of capital investment and 46% of jobs in 2011

SC is experiencing record growth


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International leader in attracting Foreign Direct Investment

Strategic location

Good infrastructure: Roadways, Rail, and Port

Need ongoing spending to maintain and compete

Higher Education and Research Environment

SmartState ~ 120 endowed chairs (criti cal need)

Over $550 Million in research funding at our 3 major research universi ties

Technical College System ReadySC workforce training program

Apprent iceship Carolina

Our strengths


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Department of Commerce Incentives (deal dependent)

Based on capital investment, number of jobs and wage scale

etc.

Counties can play major role in incentive package

SCRA / SC Launch

Project Development Funding Grants, Start-Up Assistance

Grants, SBIR Grants, and Loan and Equi ty-based Investments of

up to $200,000

Support for landing parties and demonstration projects SC InvestorsVC, Angels, Corporate Investors

Collaborative research grant support

Incentives


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Identify newincentives to attract innovation capital

Tax breaks for R&D and Venture Capital investment in our state

Enact legislation like the proposed South Carol ina Angel

Investment Act of 2011

Increase direct government grant support, if possible Create, stimulate and support collaboration

Example: SC-Israel Collaboration

Stimulate business and research partnershipsbetween

companies and universi ties in South Carolina and Israel as a

way to generate economic development, jobs, and

investmentsto the benefit of all.

www.SC-Israel.org

We need to align around innovation!
http://www.sc-israel.org/http://www.sc-israel.org/


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Champion educational excellence

Nurture innovators

Groom exceptional leaders

Encourage entrepreneurs of tomorrow

Attract and/or retain highly skilled and highly educated

workforce

We need to align around innovation!


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Get educated! Get networked! Stay in SC!

Young students must identify an opportunity and gain

relevant education and experience

Seek work-based opportunities to grow experience and

network in the chosen field* Consider study abroad and internship programs particularly in Israel!

Network, network, network!

Ask your state leaders to support legislation encouraging

venture capital investment and/or facilitating government-sponsored startup funding (key drivers of innovat ion)

At the end of the day:

Role of our students and workforce

Stay in South Carolina

our state needs you!


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Education Pays


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Thank You

Startup Nation SC

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