In many respects Israel's short but dramatic history has created a mix of economic, social, demographic and political circumstances that can hardly be compared with any other country
When describing the economy of Israel, journalists and policymakers in several countries frequently pages and use a book from 2009 by Dan Senor and Saul Singer called “Start-up Nation: The Story of Israel’s Economic Miracle”. It is recommended as The guide for promoting entrepreneurship and also the book that examines how Israel, in those days of book publishing, a 60-year-old nation with a population of 7.A million (Israel had 9.A million inhabitants in 2023 and the State of Israel celebrated 70 many years of existence in 2023), was able to reach such economic growth that “at the beginning of 2009, some 63 Israeli companies were on the NASDAQ, more than the ones from any other foreign country. How's it that Israel-a country surrounded by enemies, inside a constant state of war since its founding, without any natural resources-produces more start-up companies than large, peaceful and stable nations like Japan, China, India, Korea, Canada, and the Uk? The Economist notes that Israel presently has more high-tech start-ups and a larger venture capital industry per capita than every other country on the planet.
Two major factors for Israel’s economic growth
The authors from the Start-up Nation explained in '09 that a major factor for Israel’s economic growth are available in the culture from the Israel Defense Forces, in which service is mandatory for most young Israelis. The authors believe that IDF service provides potential entrepreneurs with the opportunities to develop a range of skills and contacts. They also believe that IDF service provides experience exerting responsibility in a relatively un-hierarchical environment where creativity and intelligence are sought after. The 2nd natural part in Israel’s economic growth, according to Dan Senor and Saul Singer is played by the immigrants: “Immigrants are not averse to start on your own. They are risk-takers. A nation of immigrants is really a nation of entrepreneurs. 9 out of 10 Jewish Israelis today are immigrants or descendants of immigrants the very first or second generation. “
The knowledge-based economy
The economy of Israel is a highly advanced free-market, primarily knowledge-based economy. Israel is constantly ranked as “Very Highly Developed” allowing the nation to savor a greater quality lifestyle than many Western countries. The achievements Israel’s advanced economy allows the country to possess a sophisticated welfare state, a modern infrastructure and a high-technology sector competitively in contrast to Silicon Valley.
The country’s major economic sectors are high-technology and industrial manufacturing; the Israeli diamond industry is among the best on the planet for diamond cutting and polishing, amounting to 23.2% of all exports. Relatively poor in natural resources, Israel depends on imports of petroleum, recycleables, wheat, cars, uncut diamonds and production inputs, though the country’s nearly total reliance on energy imports may alternation in the future with recent discoveries of natural gas reserves off its coast on the one hand and the leading role of the Israeli solar power industry on the other.
From an energy-dependent country into a power supplier
In 2023 the Greek energy producer Energean has discovered a further significant natural gas reserve off Israel's coast. Based on those estimates, discovery in the Karish North exploration field contains between 28 to 42 billion cubic meters (bcm) of natural gas. Until large discoveries of gas were made off Israel's coastline recently, few perceived the historically natural resource-poor Israel to become a significant source of energy. This belief began to change with the discovery of the Noa gas field off the shores of Ashkelon in 1999. The invention of more major gas fields in Israel since 2009, including Tamar and Leviathan, has transformed the Jewish state from an energy-dependent country into a power supplier, both domestically and abroad. The use of solar energy began in Israel in the 1950s. By 1967 around 5% of water of households was solar heated and 50,000 solar heaters have been sold. Using the 1970s oil crisis, Harry Zvi Tabor developed the prototype of the solar hot water heater now used in over 90% of Israeli homes. There are over 1.3 million solar hot water heaters installed because of mandatory solar water heating regulations. Solar panel technology in Israel has advanced to the point where it's almost cost-competitive with fossil fuels. The high solar potential of the Negev Desert has encouraged a globally renowned solar research and development industry. Israel’s objective is to produce 10% from the country’s energy from renewable sources by 2023.
“Innovation Nation”
In the past, Israel was known as the “Land of Milk and Honey,” but in Twenty-first century, it is referred to as “Innovation Nation”.
Indeed, Israel’s self-proclaimed “Startup Nation” title often may come as an unexpected because of the country’s small size, relatively young economy and culturally diverse population. Yet anyone who knows a few things about Israel knows that the nation itself is a kind of “startup” endeavor that takes risks, constantly seeks improvement and knows that innovation and creativity will pave the way in which forward. Israeli innovation has come a long way since its first “entrepreneurs” met around the Kibbutz. From impressive progress in computing technology, to efficient agritech solutions as well as on to life-saving medical feats, Israel’s listing of contributions to human innovation is protracted when it comes to using its small size. Its immigrant population, go-getter “chutzpah” * attitude, and wealth of possibilities to acquire important analytical and technological skills are factors that have helped foster an impressive ecosystem of innovation.
*Chutzpah derives from the Hebrew word utsp^a (), meaning “insolence”, “cheek” or “audacity”. The term may also be interpreted-particularly running a business parlance-as meaning the quantity of courage, mettle or ardour that the individual has
