Explanation

When the world began shifting from innovating hardware to focusing more on the

innovation of software, was when Israel began experiencing a boom in their computer software

industry. According to Shteinbuk Israel has almost 140 scientists and technicians per 10,000

employees, which is one of the highest ratios in the world. To compare, in the United States there

are around 85 techs per 10,000 and in Japan there are closer to 83 per 10,000 (2011). Not only

that, but in 2019 the Bloomberg Innovation index listed Israel as the fifth most innovative

country in the world (These are the world’s most innovative countries, 2019). Even with the

most intelligent minds per square inch, Israel’s government encourages innovation by promoting

low rate loans. Israel is so prominent in there influence on innovation that many companies have

created a base in Israel’s tech zone. Examples being Intel, Google, Apple Inc., Motorola, and

Amazon. Essentially all major sellers of today’s technology, in some way, operates a portion of

its business out of Israel. It is said that close to 59 foreign research and development centers are

engaged in a various range of activities including biotechnology, chemicals, industrial

machinery, communication equipment, scientific instruments, medical devices, flash memory

storage equipment, computer hardware components, software, semiconductors and internet.

As mentioned above Israel has their own version of the United States’ Silicon Valley

called Silicon Wadi. From this area came the RAD group, founded by two brothers, Yehuda

Zisapel and Zohar Zisapel in 1981. Due to mostly this group Silicon Wadi “…has been coined

the most fertile ground for creating Israeli entrepreneurs… having produced 56 "serial

entrepreneurs" who established more than one start-up each …RAD Group graduates were

responsible for the establishment of a total of 111 significant high-tech initiatives” (The Marker,
2012). Just how important this area is to the computer software industry was recognized in the

Wired magazine in 2000. Proving Just another reason Israel has become one of the leading

suppliers of the computer software industry.

References

Shteinbuk, Eduard (22 July 2011). "R&D and Innovation as a Growth Engine" (PDF). National

Research University – Higher School of Economics. Retrieved 11 May 2013.

"These Are the World's Most Innovative Countries". Bloomberg.com. Retrieved 24 January

2019.

"The Mother of the Start-Ups: The RAD Group Gave Birth to 110 Companies". The Marker. 18

January 2012.