Why Israel is a Tech Capital of the World

Why Israel is a Tech Capital of the World

This video is sponsored by Skillshare. The first 500 to use the link in the description
get two months free. You, the brave, daredevil you are, open Google
Maps, throw your mouse into the air, and land here. There are palm trees, lots of 20-somethings
talking into their AirPods, and everywhere you look, a familiar logo: Apple, Amazon,
Intel, Yahoo, Microsoft, Google. All within a few blocks of each other. Where are you? Your first guess might be San Jose, maybe
Palo Alto, or Mountain View. That is, unless you noticed the lack of Teslas,
or smell of Hummus, or, the title of this video. This is Silicon Wadi, a cluster of cities
in Israel with one of the highest concentrations of tech companies and startups on Earth. It’s home to Waze, Wix, SodaStream, and
Fiverr, files more patents per capita than all but 4 countries, and is ranked the 4th
most startup friendly nation overall, behind only Canada, the UK, and the U.S. The difference is, those countries aren’t
next door to the Syrian Civil War. 30 members of the UN still don’t recognize
the existence of Israel, including most of its neighbors. In fact, any evidence of traveling there,
on any passport, prevents you from visiting eight of those countries. Because of this, Israeli customs stamps not
your passport but a separate piece of paper. But despite all of this, Despite the constant
threat of terrorism, Despite being only slightly bigger than Fiji and having just two and a
half percent the population of the U.S., Israel creates some of the most successful tech companies
and entrepreneurs in the world. Why? As one of the very important world leaders
who consult my channel for advice, you want to know how to start your very own Silicon
Valley. Well, you’re in luck. The recipe is actually quite simple: First, buy some ping-pong tables, throw down
a couple of bean bags, and, within minutes, a cavalcade of Soylent-drinking, smartwatch-wearing
CS-grads will assemble at your door. Even better, why not build some apartments,
a grocery store, and, while you’re at it, a pharmacy. Then they’ll never leave! Work-life what? Just kidding! Mostly. More than a few countries and cities have
tried charming tech companies with tax breaks, grants, free 21-foot cacti, and other totally
normal things, but almost as many have failed. On the other side of the Arabian Peninsula,
Dubai built what it calls “Free Zones”, areas with special incentives to attract certain
types of companies, like Biotech firms, movie studios, and tech companies. At first glance, Dubai Internet City looks
like a great success. And, to some degree, that’s true. It convinced Microsoft, Cisco, IBM, HP, and
Canon to invest millions of dollars in the middle of the desert, at a time when the future
of Dubai was much more uncertain. But having beautiful buildings with famous
logos on them is not the same as creating an environment of innovation. You’ll find plenty of the former in the
Cayman Islands, but it’s not exactly the first place that comes to mind when you think
“cutting-edge research”. Meanwhile, Silicon Valley is, despite its
very high cost of doing business. In other words, tax breaks may bring companies,
but not necessarily innovation. Corporations come to Dubai largely for its
promise of no income or corporate tax for 50-years, but often only for marketing, support,
and sales, while hiring most of their engineers in the U.S., India, and Israel. So, what do those countries have that others
don’t? There are three basic ingredients to a successful
tech scene. The first is Talent. One of the best predictors of which is, unsurprisingly,
education. In the words of Scott Galloway, “Find the
universities that are gaining the most traction in engineering or STEM and you’re going
to find an ecosystem that can produce a unicorn.” Basically, put a bunch of smart, ambitious
people in a small, contained space, sprinkle-in some idealism, ideas will collide and good
things will happen. At the level of a nation, universities are
about proximity, and hey, if you also learn something along the way, that’s a bonus! Which is great news for Israel, one of the
most educated countries in the world. About 47% of those over 25 have a college
diploma. The Hebrew University of Jerusalem, Tel-Aviv
University, and the Israel Institute of Technology are all globally competitive schools. And because the country is just so small,
and its population so highly-concentrated in just a few regions, it has the same fertile
ground for entrepreneurship as a college campus, at a much larger scale. About 92% of Israelis live in urban areas,
almost entirely in the Northern half of the country. Startups, therefore, are surrounded by their
customers, business partners, and competitors. The other aspect of Talent that’s often
overlooked, but just as important, is demographics. Not just how big a population is, but also
what it’s like. For example, it’s misleading to say only
that Japan has 126 million people and Ethiopia, 98. What those raw numbers hide are their age
and background, which can either act as a free economic multiplier or a bleak and costly
undoing. Japan’s population may be large, but it
takes an unfortunate shape – far too many old people for not enough young. Unless millions of Japanese suddenly change
their mind and start having children tomorrow, the land of the rising sun will slowly set,
as Africa grows into the next major consumer market. Now, Israel’s growth is not quite so dramatic,
but it is growing, which is more than you can say about the future of most developed
countries, including all of Europe, the U.S., Canada, Australia, and China. The problem is not that Japan doesn’t have
working-aged people. Even as its population shrinks, there will
long be millions and millions of workers. But they’ll be busy caring for their parents,
not inventing the next big thing. Israel, meanwhile, has enough people to care
for the old and young, with plenty left over. It also has some extra help: immigration. The Law of Return allows any Jew, their spouse,
children, grandchildren, and even their non-Jewish spouse to come to Israel and receive citizenship. There are even scholarships to cover your
expenses while you learn Hebrew. The result of all this is that there are 140
scientists, technicians, and engineers for every 10,000 Israeli employees, compared to
just 85 in the U.S. The second, much-simpler ingredient is Capital. Starting a business is expensive, and someone
needs to write the checks. The good news is that the only thing Silicon
Valley hates more than affordable housing is missing out. Investors pour money into companies whose
only skill is improving the rate at which they can flush hundred dollar bills down the
toilet simply because they don’t want the feeling of having lost an opportunity. (Cough) SoftBank. Once word gets out that somewhere, like Israel,
is good at producing high-value startups, finding investors became exponentially easier. The more checks are written, the more venture
capital firms pay attention. Israel’s government got the ball rolling
in the ’90s with big incentives for anyone willing to come invest in the country. Today, 4.5% of its total GDP is spent on Research
& Development, which is just barely less than first place South Korea. Now, producing lots of smart, young graduates
and giving them bundles of cash is cool and all unless they take those skills and that
capital to California, giving Americans the jobs and tax dollars. The third ingredient is, therefore, a High
Standard of Living. Israelis have to want to stay in the country. It’s a fun fact for South Africa that Elon
Musk grew up there, but not much use because Tesla and SpaceX are American companies. And this is harder than it sounds. On one hand, entrepreneurs and employees care
about healthcare, crime, public transit, and so on. But, it’s a balance. Because, as salaries rise, companies are less
drawn to the lower cost of hiring an Israeli engineer – currently $73 thousand over, say,
a Californian – 114 thousand. Salaries are so high in the San Francisco
Bay Area, for example, that, if you’re feeling particularly cheap, you might just buy a $20
million private jet to save money, so you can hire employees in less-expensive Houston
and fly them over for the workday. Israel has to be attractive enough for people
but not so expensive that businesses look elsewhere. Together, these three ingredients go a long
way towards making Israel one of the tech capitals of the world. But there’s also another, harder to measure,
but, no less real, factor to consider: culture. If you graduate from Stanford with a degree
in Computer Science on Friday, there’s a very real chance you could walk into a Facebook
or a Microsoft on Monday and start making $100+ thousand dollars a year. Or you could spend your days begging for money
with the possibility of losing a lot only to end up back at square one. When the vast majority of new companies fail,
starting one is a huge risk, especially considering how lucrative the alternative. It takes a certain kind of personality that’s
willing to fail – and do so very publicly. In many Asian countries, the culture of saving
face makes entrepreneurship unthinkable for many. The reputational damage of failure is simply
too great. In Israel, however, a spirit of Chutzpah – roughly,
audacity or bravery – has just the opposite effect. The author of the book Start-up Nation writes
“Somewhere along the way – either at home, in school, or in the army – Israelis learn
that assertiveness is the norm, reticence something that risks your being left behind.” Israel is one of a handful of countries that
requires long military service for everyone – 3 years for men and 2 for women. During their service, Israelis learn skills
that apply to the workplace, make lifelong friends and business partners, and are reminded
that their country can’t be complacent. Ultimately, Israel proves that there is no
single factor to economic success. It has high rates of education, lots of government
investment, and, especially considering its geography, an impressive standard of living. But it isn’t ranked number one in any of
those categories. Instead, a combination of all these things,
along with factors like American foreign aid, allow the country to prosper. It also shows that top-down, government policies
are only so effective at encouraging entrepreneurship. Countries can hand out money left and right,
but innovation occurs at the level of the individual – his or her ability to take risks,
start new projects, and learn new things. If that sounds like you, let me recommend
these videos on Skillshare. This one is taught by Guy Kawasaki, the guy
responsible for marketing Apple’s revolutionary 1984 Macintosh. In short, bite-sized videos, he answers business
questions like How to ask for money from investors, how to pitch your idea, and why you should
network. If you already have a business idea in mind,
there are also lots of specific lessons. The head of production at Anchor, for example,
has this class on how to start a podcast. Whatever you want to learn – how to draw,
take better photos, make YouTube videos, Skillshare probably has it. Better yet – for you, it’s free, for two
months. Just be one of the first 500 people to use
the link in the description.

100 thoughts to “Why Israel is a Tech Capital of the World”

  1. The Jews are still waiting for their Messiah…… unfortunately for them he has come and gone already. His name is Jesus Christ and they killed him when he was on Earth.

  2. Israel the source of all evil, this state is illegal kill it before its seeds, it's only 50 years old destroy it now before the virus can't be controlled

  3. Such a cool video, really made me think of my place in this huge population meant to promote innovation, and how all my experiences up until this point were shaped by this drive. I'm also from South Africa, like Elon, but i didn't become some giant tech mogul. But i had the potential to do it – i was quite smart and productive before i fried my brain. But those same negative experience that drove me to madness may have driven someone else to brilliance and innovation. I guess the differences of our experiences lead us either to ruin or to grandeur, but what's important is that we all have the opportunity to do amazing things. I'm really thankful for America for taking me in, even though i ended up not being productive. America does some fucked up shit regarding foreign policy, but they're also the reason i have electricity and a car and the internet. I guess i kinda like this arrangement ๐Ÿ™‚

  4. They are leading because they are on welfare from all the American Taxpayers/Military tech donation, having dual citizenship officials in most countries and positions of corporations while terrorizing the middle east and taking anything it can from everyone it can..

    Why are people praising or even looking at Israel with any respect? Why is half our politicians Dual Citizenship with Israel, how is that not a conflict of interest?? Why is Trump putting Israel First over America? Why on earth does anyone not speak out about the $38 Billion we send Israel? We are building their SECOND WALL and we can't even build our own for our own security….yet almost every politician backs this decision. Why do we just hand over all our advancements and military tech? Why do we fight their wars for them? What do we get out of anything we do for Israel? Look who purchased the land of Israel in the late 1800's…

  5. Thank you high ones โœ๐Ÿ™๐Ÿคณ๐Ÿš๐Ÿ˜๐Ÿ’Œ๐Ÿ’ž๐Ÿคฐ๐Ÿ‘ฐ๐Ÿ‘ผ๐Ÿ’‹๐Ÿ‘ผ๐Ÿงœโ€โ™€๏ธ๐Ÿงšโ€โ™€๏ธ๐Ÿ‘ผ๐Ÿงโ€โ™€๏ธ๐Ÿ‘๐Ÿฆ‰๐Ÿงšโ€โ™€๏ธ

  6. They don't manufacture a fvking thing, their slaves in China or other hell hole make it, mine it, refine it. The chips are assembled with non Israeli precision technology including the precision machinery auch as PCB etchers, pick and place robots, optical metrology and optical qc scanning. The only thing Israel has is funny money from its criminal diaspora either human trafficking for sex out of Odessa, sex and extortion (Epstein, pink illegal Hollywood and smut peddlers like the bar mitvah invite list of "Adult Film production houses"), organs from China (Israel is only nation other than its sister Singapore that allows sale of human organs in preference to in-order-of-greatest-need nett worth blind list) or white collar crime in New York (Lehmann Brothers, Bear Sterns, Madoff, the list runs into the tens of thousands). Speak the truth and shame the Devil.

  7. 3 years of service for men, or 2 years of service for women is not a long time, but very short instead. 20+ years, now that is a very significant investment of one's life into the military.

  8. Well the anti christ gonna live there ..it has to prepare itself for their fake king..he will be a politicall military leader..

    HELPER AND GUIDE !!!!!!!!!!!!!!!!!!!!!!!

  10. comapreed to china, it is nothing, israely has huge access to american technlogy in last 60 years, or it would be like third world country today

  11. Why is Israel, allegedly, such a shining star of Zion when deep within the Jewish collective soul, hate and separation from Palestine was made out to be such a little police action instead of the crime that deserves the charge of crimes against Palestine and humanity at large.

  12. Terrorism?
    Isreal is the terrorism it self!
    Taking other people's land and then force them to get out of it and killing them is obviously not a terrorism for you

  13. you forgot despite its army killing a lot of children and putting those who oppose it in jail

  14. This Abomination has a name, no need to hide it: Islamic Arab trolls has another habit – instead of killing their own Arab brothers by the thousands, they go to youtube to vilify anything Israeli or Jewish.

    They don't do anything positive, so they have all the time in the world to let their delusional, sick, twisted head go wild …

    All that came out of the Arab world in the last millennium … was terror, death, child abuse, woman beating, hate … and of course suicide-belts …

  15. ๐Ÿ‡ฎ๐Ÿ‡ฑ๐Ÿ‡ฎ๐Ÿ‡ฑ๐Ÿ‡ฎ๐Ÿ‡ฑ๐Ÿ‡บ๐Ÿ‡ธ๐Ÿ‡บ๐Ÿ‡ธ๐Ÿ‡บ๐Ÿ‡ธ

  16. No matter how much you hate them, you gotta appreciate how Jews have grown despite all odds. They're at all top notch places and one of the smartest people irrespective of their ethnic origins.

    P.S. I love them !

  17. Answer to the title: Due to the biggest espionage security breach in the history of mankind.

  18. Leave out the soviet scientists
    Leave out the theft of American tech
    Leave out the close relationship with china and Russia

  19. Look at Microsoft, Google etc.
    and see where their IT jobs are… lot in Tel Aviv and other Israeli cities and almost none in the rest of Mideast except for Saudi and Dubai lol. Also compare the IT job function which are in Israel to those in Dubai/Saudi. In Israel it is very technical jobs like cubersecurity expert, internship cyberdefence etc while in those Arab countries its just a financial secretary or something even though the IT quality of graduates is roughly the same.
    Its all politics, the only answer.

  20. Why the lion walk on the jungle without problem?? Because he's not the "king of peace" , because he's the king of…

  21. Need to encourage self education too.you forget God He is bringing Jews back to Israel.I during the nt think 2years is that long military service.

  22. ื›ืŸ ื˜ื•ื‘ ื•ื‘ื™ื ืชื™ื™ื ื”ืคื™ื ื’ ืฉืœื™ 100+

  23. Looks like being a tech capital doesn't buy you class – or rather – stop you from being an apartheid state.
    Seems like there's like a weird mix of religious nutters and well-educated individuals.

  24. I'm cyber security professional, and I want to say Israels steal other cyber security experts research papers too, not only others lands..

  25. When you decimate 12 million Palestinians, steal their land, water and wealth, bomb their homes, rape and kill their children and pregnant women you are bound to make something. Especially when America and Europe are funding you so that you don't return to your lands.

  26. ok, so now show to us why Palestine isn't a tech capital of the world? what's is the reason..oh , wait

  27. 30k per American citizen goes to fund this apartheid, internationally illegal occupation of Palestine, with constant funding and material coming their way. You apartheid supporters remind me of the "friends" of the idiot friend who's enabled by your blind support, including believing their lies. Same to those who blindly support Judaism, you support tribal supremacy, usury and a tyrant, selfish false god. All blind to the fact that you do. All always telling yourselves it's going to be okay because your masters are taking care of you and got this under control. The worst kinds of friends to them.

  28. 1:13 Taiwan recognizes the State of Israel, but Taiwan isn't a UN member (because China doesn't allow it to be)

  29. Israil is a TERROR capital not a tech capital. They (bloodthirsty zionist) are TERRORIZING civilians everyday killing woman, children even paramedic and journalist. Including American and British journalist/ activist like Rachel Corrie

  30. MM22+FW Seattle, Washington 0:10 thatโ€™s Seattle, not Israel… ….. dude? What are you doing?

    Anyway I always associate Israeli tech with Infosec

  31. Thank you. It's really important. Israel is a wonderful place on earth. But like the road to heaven, the whole journey for good goes through difficulties. But after all, it's a good place and they are welcomeโค๏ธ

  32. How to succeed in tech?

    Get the Capitalist manifesto right.

    Government can throw money into the sea however they want. It is the individual that counts.

  33. It's great Israel is doing so well. Does this mean the United States can stop sending aid? Since the 1970's , Israel has received more foreign aid per person than any other nation on Earth. Israel gets more foreign aid than all the nations of South America, the caribbean and Sub-Saharan Africa combined.

  34. Israel? They're the ones that does wars and bomb all those innocent people and children in places like palestine and Gaza right?why are everyone acting like they don't know these things? Just search it up you'll find their darkest sides which everyone's afraid to talk about.

  35. So smart building machines that can & probable will kill us & them killing robots no to bright ,a possessed doll can be scary ,a possessed robot OH!!!

  36. Israel = tech. all arab countries = still throwing stones. do you still believe we can live with these mf's in peace?

  37. Trump will have America buy Greenland so that all American jews can be deported there without their assets. Let them freeze their nuts off. Greenland is a desolate Ice land and named Greenland to entice settlers whereas Iceland was a Green land and named Iceland to discourage settlers.

  38. I mean irelands low tax rates for companies has worked. We got google and AWS. It ain't much but it's honest work

  39. Israel: propaganda capital. Talks it's self up but always being caught red handed like the doc "the lobby USA" killing people in Bahrain and only people with bombs arrested on 9/11 were mossad. Christopher bollyn exposed all their crimes.

  40. 4:30 Why do all three major Israeli universities all have such cool, enigmatic logos? Life just isn't fair sometimes.

  41. Yeah more like occupying a land and kicking out / killing the indigenous people of it and pretending that non of this happened because it happened long time ago (1948) and till this day trying to get rid of them while the world watch silently, free Palestine ๐Ÿ‡ต๐Ÿ‡ธ

  42. 1:48 "As one of the most important world leaders who consult my channel for advice" why am i not believing that….

  43. The Copret biste Israel dej sik kontroll bot de vill hav No kotrol
    The sorpen sik tu kotrol hole vold en America as is slev
    Vill ju stend vitt teknologi bist end money me erstatning pasport en idi so angodli

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