By Ziva Eger
Chief Executive, Foreign Investments and Industrial Cooperation, Israel Ministry of Economy and Industry
This post is part of a series produced by The Huffington Post in conjunction with the Israel Dealmakers Summit 2016, the premier Israel-focused business event of the year representing a meticulously curated gathering of global corporations, investors, dealmakers and technology entrepreneurs converging from around the world during this exclusive two-day event in Silicon Valley. You may learn more at www.IsraelDealmakers.com.
With the highest concentration of startups in the world after Silicon Valley, Israel has become renowned globally as the “Startup Nation.” Trailblazing startups from Waze to Wix to PrimeSense to Mobileye have helped Israel gain its reputation as an international hub of entrepreneurialism and hi-tech ingenuity.
But what is perhaps no less remarkable is that more than 270 multinational corporations (MNCs) have established more than 320 advanced R&D facilities throughout Israel, making our tiny country an “R&D Lab” for the world’s leading tech firms. These include Google, Apple, Facebook, Microsoft, Intel, Yahoo!, Motorola, HP, Siemens, GE, GM, IBM, Cisco and many more. In fact, these multinationals employ around half of Israel’s hi-tech workforce and contribute significantly to the Israeli economy. Many of these centers of excellence are the companies’ only R&D centers outside their home countries, with more and more setting up shop in Israel almost on a daily basis.
Over 200 of these MNCs are American. Part of this can be attributed to the fact that Israel and the US share mutually robust, creative economies driven by affinities for entrepreneurship and enterprise. Here are seven more reasons US MNCs continue to invest in Israel.
1. Innovation. Israel has become a global powerhouse for innovation and pioneering technologies, punching way above its weight class in a wide variety of fields such as Internet, cyber-security, health & life sciences, big data, computer vision, and fintech, just to name a few. Israeli innovation is helping revolutionize the world as we know it, and the global players want in.
2. Success. Many MNCs have been able to develop some of their most innovative solutions, breakthrough technologies and even their flagship products at their Israel R&D centers, and nothing, as the old saying goes, breeds success like success. US MNCs have realized that if they want to stay on the frontlines of innovation, then tapping into Israeli ingenuity is the way to do it.