Start Up Nation — Israel’s Greatest Combina
Combina. noun. Israeli slang, a crafty solution to a problem, something or someone clever.
Israel is known the world over as “The Start-up Nation.” It’s an exceptionally executed marketing strategy to bring high tech giants into the bite-sized nation — and it’s working. But beyond the branding, the entrepreneurship-focused programs, and the reputation, lies a deeply creative, innovative, and inventive society. But why?
It may be that the survival of the state depends on it. Military service is compulsory for nearly all citizens, but most leave the service after the minimum two or three years. With such a turnover rate, training must be short and incredibly effective. In the United States, leadership training for officers takes four years. In Israel, the same program lasts a paltry three months. Thus, much of the “training” that goes into the position is learned on the job, in the field. For the aspiring entrepreneur, this skill is essential. Many companies are started by technical founders with little business acumen, and companies that fail to adapt quickly undoubtedly go under. Compared to their counterparts in other countries, Israeli entrepreneurs are especially well equipped to adapt to changing market conditions, and the changing needs of a fledgling tech firm. In short, the shared military background of the Israeli people provides indispensable training that makes them particularly flexible and adaptable entrepreneurs.
Military service is only part of the story, however. While it’s an established fact that veterans have a higher rate of self-employment than almost any other group, the success of Israeli firms is unmatched. This is in large part due to the work of the Israel Innovation Authority. The IIA works in conjunction with dozens of start-up incubators to fund high-risk emergent technologies. For every $1 spent on R&D, $5-$8 are added to the Israeli economy, and from its generous investments, it’s clear that the Israeli government understands the utility in these investments. Between a legal system that supports entrepreneurs, large investments in R&D across the board, and a highly educated populous, Israel supports a functioning system of innovation.
As entrepreneurship has become more and more commonplace and the necessary legal and economic framework to support it has been solidified, a culture that fosters innovations has sprouted up around it. In many societies, failures are a source of intense shame and to be hidden away, out of the public eye. This couldn’t be farther from the norm in Israel. For Israelis, failure is celebrated. After building 10,000 failed prototypes for the lightbulb and being asked how he felt about his failures, Edison is credited with proclaiming, “I have not failed. I’ve just found 10,000 ways that won’t work.” This sentiment is mirrored in the Israeli cultural predisposition. Failure is not condemned, but rather the attempt is celebrated for making progress towards success.
Israel itself is a start-up — a nation built from the ground up — so it’s fitting that Israel should be the birthplace of so much of today’s tech entrepreneurship. From top-down investment strategy to bottom-up cultural norms, Israel is posed to be ground-zero for the next tech revolution. This is a nation with some serious chutzpah.
