How Did ISRAEL Become The Country of START-UPS? – VisualPolitik EN

In the last few decades, Israel has become
one of the most important technological powers
in the world.
Amazingly, with a little more than 8 million
inhabitants, this country has more than 4,000
tech companies.
Cisco, Paypal, Google, Facebook, Apple and
Intel are only some of the many companies
that develop new products in Israel.
But how did such a small and turbulent country
become one of the world´s innovation leaders?
Well that’s what we’re going to be looking
at in today’s video.Israel is one of the
most controversial countries and, in truth,
it’s pretty difficult to talk about it without
having to refer to wars, religion and various
political conflicts.
However, in this video we’re going to try
and shed some light on a very different side
of this country.
Because, dear viewer, in the last few decades
Israel has become one of the world’s greatest
technological powers, and this is something
pretty suprising.
As we mentioned Israel has over 4,000 tech
based companies, and 80 of the 500 largest
companies in the world have subsidiaries here
orientated towards research and innovation.
In fact, Tel Aviv is, right after Silicon
Valley, is the most important technological
centre in the world.
And although it may seem impossible given
its size, Israel is the country in the world
with the third most companies listed on the
Only being behind the US and China.
Israel has more companies listed on this market
than Spain, Italy, France, Germany, and the
So how about some like specific examples?
Well, here they are: At the time of publication
most of the next iPhone’s hardware is being
developed in Israel.
Further, many of Google’s innovations are
made in Israel; and Intel, the world´s leader
in microchips, owes most of its success to
the innovations of its Israeli subsidiary,
which, by the way, has 11,000 workers, and
is one of the largest companies in the whole
And, well, even Microsoft has been considered
a semi-Israeli company!
Paypal, IBM, Cisco, Amazon, Facebook… these
are the companies that we use every day, whose
technology relies a lot on R&D that is done
in Israel.
This sector makes up to more than 12% of its
national GDP and half of its exports.
Alright, so now you are probably wondering:
how did they achieve such success?
Now cultural factors are usually considered,
but here today we want to focus on three political
keys that were essential in this process.
The 1980s in Israel are remembered as a terrible
decade, especially from the economic perspective.
Back then the country was going through a
tough crisis: inflation between 1980 and 1985
exceeded 100% every year.
Deficit and public debt were almost an unbearable
financial burden on the economy, and in general,
people felt handcuffed due to excessive state
To a large extent, Israel was very dependent
on help coming from different parts of the
And even though the situation started to stabilize
by the end of the 80s, right at that time
there was a massive arrival of Jewish people
from different parts of the Soviet Union.
In very little time, 800,000 new people arrived
in the country.
And don’t forget to add perspective to this
number, in relative terms, it would be as
if 70 million immigrants arrived to the US.
And now the question for Israel was clear:
how could they generate jobs for so many people
in such a depressed economy?
Israel´s only option was to reinvent itself.
At first, the government tried to encourage
the newcomers to create companies with subsidies
that promoted the work of entrepreneurs.
But they soon realized that this method didn´t
result in prosperous companies…
Immigrants had no experience in management,
they lacked commercial knowledge, and they
rarely got any finance.
After all, who would invest their money in
a turbulent country like Israel?
And this is when the government realized that
the key was to bet on attracting international
venture capital, that is, money used for new
ideas and new companies.
In order to do so they came up with the YOZMA
Thanks to Yozma, the government created 10
funds of venture capital and allocated $100
million dollars to be used under the these
Each fund capable of levying 12 million private
investors would receive 8 million in public
In exchange, the government would keep 40%
of the property, but in case the investment
was successful, the investors could get these
shares from the government just by giving
the government’s money back with a small
interest rate.
So, friends, if things worked well, the profits
would be mainly for the investors, and if
things didn’t work so well the government
would share in the losses.
Now, this may seem unfair, but the truth is
that the public investment was relatively
small and, also, the government expected to
get the losses back from the taxes generated
by these new companies and all the new jobs.
The ideas was to fire things up and then continue
to reap the ongoing benefits.
Since then, most public programs in Israel
have followed this same system, and the truth
is the results couldn’t have been any better.
International money started to arrive, there
was funding for almost any idea, and in the
first eight years alone the number of funds
rose from 20 to 513!
As a result, Israel has today one of the best
ecosystems for entrepreneurial capital in
the world and, according to the last OECD
data, the investment available for new companies
exceeds $150 dollars per person, per year.
To make a comparison, in Spain, the equivalent
figure is only $3.5 dollars, a solid 40 times
The key in this process is that venture capital
doesn’t just bring money, with this money
also comes experience and contacts.
It could be said that israel is the country
which has bet on immigration the most:
One out of every three citizens has been born
abroad and 9 out of 10 are either immigrants,
or children or the grandchildren of immigrants.
This is an impressive migratory number that
explains the growth of its population from
800,000 inhabitants in 1948 to more than 8
million today.
So, in little more than 60 years, the population
has multiplied by 10.
Israel is, in fact, a political and historical
exception, because their founding documents,
so to speak: its constitution, expresses the
need to have an open immigration policy.
Let’s have a look at what the law of return
(still in force) of 1950 says:
“Every Jew has the right to come to this
country as an Oleh.”
And don’t get this wrong, this isn’t a
minor issue.
Immigration has contributed to the economic
miracle as much as any other factor.
No matter what populist politicians say, whose
aim is often just to get votes, the wealthiest
nations are usually the ones with more immigrants.
Among other reasons, it is usually because
immigrants have higher rates of entrepreneurship
than the local population, and also because
immigrants help boost international trade,
especially with their countries of origin.
By the way, if you are interested about immigration,
I will link over to some videos about this
at the end of the video!
The quality of Israeli education is almost
a national hallmark.
In 1918, 30 years before the founding of the
state of israel, Jewish settlers founded the
Hebrew University of Jerusalem.
Israel today has one of the highest rates
of people with college degrees, and the country
has had a lot of success with fusion company/universities.
Finance for Israeli universities relies mainly
on projects financed by private companies,
so there are reasons for universities to collaborate
with them.
Further, they have achieved the best rate
of business creation in the OECD:
“Knowledge transfer is essential; this is
taking the university and professional world
closer together”
Well, we have seen the main keys to success,
but there are other influential factors.
For example, there is the Jewish “chutzpah”,
a tendency to question everything.
Something that is key in Jewish culture.
The military service is also a surprising
and important thing since it helps social
mobilization forcing young people from different
social classes to interact.
And, hey, compulsory military service isn’t
exactly great… but I have to admit it does
have some positive effects.
Now, we could also discuss, for example, Netanyahu´s
reforms of 2003, which were essential to Israel’s
success, but I think it’s better to leave
that for a future video.
The thing is, thanks to all of what we’ve
discussed today, since the 80s, Israel has
doubled its population, multiplied the number
of jobs by four, and grown by an annual average
rate of 4%.
Today, its GDP per capita is higher than other
countries like Spain or Italy.
So, what do you think?
Will israel consolidate itself as the leading
technological power in the world?
Could its model be repeated in other countries?
Let us know what you think in the comments
And, hey, if you liked this video, hit that
like button below and don’t forget to subscribe
for brand new videos every Monday and Thursday!
Thanks for watching, and as always, I’ll
see you in the next video!

100 thoughts on “How Did ISRAEL Become The Country of START-UPS? – VisualPolitik EN”

  1. key success factors for Israel are (1)Yozma (2)Migration (3) Education………and the most important (4) Military (this is missing in your report)

  2. All the factors mentioned in the video and Israeli determination and hard work, the Zionist ethos, have led to Israel's success as a tech power. This is Israel's time to rise. The Era of Israel.

  3. Must be nice to bulldoze your neighbors house because he is not Jewish. Or only accept migrants based off of ethnicity. Or have government that received annual government aid since its inception, or have every war won by your battle thralls. Or have an actual national socialist state.

  4. What worked in Israel will not work at all in the U. S. The government involvement in venture capital loans would mean here that greedy politicians and unelected bureaucrats would skim off so much of the cream there would a.) much less to invest in actual technology; b.) a lower percentage of real profits, and c.) very likely higher taxes. And the one thing you left out is immigrants to Israel (primarily Jewish) are high intelligent and educated. The masses of illegal migrants that want to come to the U. S. have for the most part no education, are disease ridden, are havens for terrorists, and dangerous gang and cartel members from other countries. Last week in one day our U. S. Border Patrol arrested 133 people from Non-Latin American countries (including Pakistan, Bangladesh, and Romania!!). Receiving immigrants who are stupid (factually) makes the group likely to come only for all the free hand-outs that the political parties (mainly demokrats) promise them. This will not build any country, but will tear it down in a few decades (see history on this one). Another reason Israel's experience of success is nontransferrable to the USA is that their universities are patterned after the older European model: students are grounded in classics, sciences, and math with no bullshit "studies" courses. The latter courses load down the undergraduate curriculum now in all leftist controlled state/public universities taking up over 1/3 of the courses in a required degree plan. The result is our graduates know far less per capita than Israel's college graduates. They mostly have no useful skills in today's American service and retail oriented job markets. You can't graduate from a college in Israel without knowing lots of information from hard course areas (real classic humanities and sciences).

  5. Excellent video! Both my visits to Israel 10 years apart were mind-blowing experiences.
    I would add that the "immigrant mentality" especially wrt risk-taking is key aspect. Also, policies were put in place so that when say Microsoft would acquire a company the R&D part of the company had to remain in Israel and after a few acquisitions large companies would find it easy to set up a subsidiary. Also the very close interaction with the US has helped attract VCs. Today a common model is to obtain funding and move management to the US while keeping the development part in Israel.
    So can this model be applied to other nations? I think some elements can be. In the EU we have the Equifund backed funding kinda similar in some respects to Yozma. Also smaller nations like Greece are trying to follow the Israeli model with the business part of the company emigrating to Germany, UK, or the US while the development part stays put.
    However, immigration into Israel is completely different from immigration into Europe today in terms of cultural and religious homogeneity which makes integration much more difficult.
    Also – as my Israeli friends tell me – "We only had one chance to get it right" referring to the creation and development of Israel.

  6. I'm surprised you neglected the cozy relationship between the US and Israel. As for immigration, it seems that Israel is strict when it comes to immigrants from Africa, who have recently been given an ultimatum to leave (at least, the single male Africans). The law of return says any Jew has the right to return. That'd be like the USA saying every White Protestant has the right of immigration.

  7. Considering that anti semitism seems to be socially acceptable in today’s world, As a Jew i am very happy to see all these really amazing comments about the state. ❤️

  8. Hey I have been in Israel for 10 years. Don't get the message wrong here. Israel is a country with a a lot of people. It's crowded and not all the people there are Jewish (only most are). It's not a futuristic place or something like that. The production of new futuristic products happens there, but it's not like we all have really good technologies that everyone has. We just got the things that you can use to order things in Mcdonald's only a year or two ago. The overcrowding of Israel is a major problem. If you traveled in Texas and in Israel, It would take about 1.5-2 times more time to be able to travel the same distance in Israel than in Texas. Also, the reason people rate the education system to be really good is because collage is much cheaper (unlike U.S.A.) in Israel so more people get collage degrees. Also, (it's just a nice fact) we don't have credit cards and people are scared to invest, and most people don't know that you can use investments to buy houses and then sell them after improving it(so we aren't that smart are we?). Another thing about the education system: we learn תנך, which is our religious history. Religious schools teach more of that subject. About as being Jewish: there are two types of Jewish: urban and religious. The urbans don't care as much and the religious are those people that care a lot about being Jewish. The religious people are the ones you think about: those men in the black cloths and weird hair at the sides of their heads. So don't think of the Jewish religious people every time you hear Israel.

  9. Good then maybe they can start paying for thier own country and fighting their own wars while thier at it. Instead of pawning those things onto "stupid" goy americans.

  10. Jewish I don't hate them . They are democratic ,they have talents , enough technology to change the world .God bless Israel .

  11. all about Venezuela & other places that you live/ a bit of PAVLOV* and it could be going global !! heard* the bell react/ salivate & obey.// vote and follow the main media democracy.!!!! which now includes alternative media / global fake news and VISUAL POLITIK looks is more BS/ why is just BS, how is now global brainwashing from this block to any other? from Alex Jones to our good speaker and most global news are fake* meaning truth is now obsolete just youtube BS

  12. Because Jews are the most corrupt and greedy of the lot. There is a reason they are the least trusted and not even recognised by the rest of the world…

  13. I am an Israeli inventor who want's to make the greatest invention of all time, an invention that will change the face of the earth forever… I want to make an ocean of hummus, so that when it rains it will poor hummus all over the mountains, and then the hummus will grow all over the land and we can all have free hummus..

  14. How Did ISRAEL Become The Country of START-UPS? By stealing the land of Palestinians & kill them in the name of their divine warrant. Yes, they are assholes

  15. You made a mistake by comparing the number of israelis companies listed on Nasdaq to european ones. European companies don't need to raise capital on Nasdaq they have their own exchanges (EU > 300 million potentiel investors). Being on Nasdaq also implies US regulations so european companies have no interest of being listed there unless a they have a good reason.
    On the contrary, israelis companies need to raise capital abroad (Israel > 8 million potential investors vs EU potential investors).

  16. Attitude is definitely a major part of the success. They question and argue about everything. 3 Israelis will give you 5 different opinions. An Israeli can argue with himself about any topic. It's not aggressive arguments, it's intellectual arguments trying to get down to the source of truth. They also don't get offended easily, so being straight forward cuts down on time and bullshit. The other thing is the necessity to survive in that region. Not blessed with any natural resources (until recent gas finds) Israel had to come up with something new because relying on exporting oranges wasn't going to cut it in the long run.

  17. Thanks we have very good relationship with Israel and hope our both government buildings strong relationship on common ground. Love from India…

  18. A big misconception is that Israel is a european country.
    More 60% of jews in Israel came from Arab countries and merge with european jews.
    Actually Iraqi jews May be the most educated and successful.
    If Iraq maintained ties with its jews and Israel and went back to its pluralistic tradition, rejecting secrerianism (brought to Iraq by the Palestinians in the 1930s) Iraq willbe a paradise.

  19. Dont kill me but the Palestinians are actually lucky their neighbors are some of the smartest people in the world ///FUK-IT Matter fact I'll say it . If the Jews were not in charge the Palestinians would kill each other and destroy the land FACT!!!!!!!!!!

  20. Your videos are getting addictive. I need to get unhooked this new information fix you guys are dishing 🤔😛😮🙄😁

  21. I think the key point here has been deliberately not discussed in detail which is the key source of financing has been the aids secured through lobbying in United States. So it is no miracle or exceptional economic policy that helped them get their but merely the free flow of aid that ensured their phenomenal growth and market dominance. Give that kind of money to any third world country and you will be surprised with the results.

  22. 3rd world immigration is shit, but the Jewish immigration which has its ideological connection is not "just immigration" without a specific ideological basis and a common culture/heritage.

  23. Beutiful …we are Fathers holy land .i love so much .long live ISRAEL ❤ GOD BLESS ISRAEL 🇮🇱😇🙏.

  24. This is pretty much a lie that Israeli try to manipulate the world with – they made some inventions but mostly posing ever since. You really think that a religious country can keep acomploshing without education?
    Well I lived with them and these animals are very limited. Pretty sure they manipulate the charts because it's something that they are actually good at, lying conniving and stealing

  25. Israel is a clear and present danger to the planet.

    How Israel totally dominates cyber security and has planted high level corporate spys all over the world via their Talpiot Program run under Israeli military intelligence.

    1. How Russia China & Israel work together for the One Belt One Road Project.
    2. How Israel steals US technology and passes on to China, Russia and Iran.
    3. How this is impacting on the Middle East.
    4. I ring Homeland Security to make a complaint about Jewish Zionist spying in America – it a good one hour watch.

    Israel has kill switched the entire planets critical infrastructure. From banking to hospitals to power grids to the Internet of Things and Military Industrial Complex of the United States. Israel is a cyber technology juggernaut.

    Detailing how Roger Stones worked with A Wall Street sex worker to compromise targets of interest for the Israeli and Russian state intelligence apparatus.

    The Oded Yinon plan was first postulated in the 1970's as a way to "re-shape the Middle East" for the benefit of Israel.
    What it was really about is long term Soviet era strategic planning to "re-shape" the Middle East for the benefit of The Belt & Road economic development under the CFR (Communism For Rothschild) and other Round Table Groups? The East India Trading Company writ large.
    911 was meant to happen in 1992-3. The Israeli company lost the security contrat in 1988. And 911 was over ten years behind schedule along with the Belt & Road Initiative. All praise to the New York Port Authority employee who spotted war criminal Avraham Shalom Bendor and Zvi Malkin.
    Israel should be called "Soviet Israel".

    The B.I.R.D, the B.I.R.D, the B.I.R.D is the word.
    The Bi-national Industrial Research & Development foundation.
    The greatest security penetration…ever…is so funny you have to laugh. Its the only way to cope.
    This is a catstrophe for the United States and it is in full view.
    Russia got Israel to set up the Bi-national Science Foundation (B.S.F) in 1973 under Nixon and Henry Kissinger.
    The B.I.R.D was set up in 1978, around the same time they set up The Talpiot Program.
    And then they have the B.A.R.D – Bi-national Agricultural Research & Development foundation.
    Here it is…no one will talk about it. when you see Bi Bi bragging about how clever Israeli scientists are what he's really saying is his Russian immigrant scientists are very good at stealing US technology.

  26. I praise Israel for its contributions to technology. The other countries in the Middle East focus way too much on war and terrorism to bother. Instead of learning a thing or two from Israel like they should, they constantly bully their small Jewish neighbour.

  27. I have CANCER,, I am willing to accept a cure from only the following types… NUTS! People in the really matter space don't give a shit if your form any country.. any faith… any race.. any sex… the problem is the media bs selling masses that there is some truth that has ZERO to do with the real world.

  28. Israel focuses on mass patenting using loop holes in US intellectual property laws to secure a steady money flow

  29. I mean, with this political mambo jambo out their on Huawei not getting Google products, I believe Honor should be a Spinoff start up in Israel that has nothing to do with Huawei, in order to develop smartphones and let the US be up to date in 5G technology as in a way the US has no problem with Israel!

  30. Nothing truth in this vedio just hiding ugly face of Jews. Isreal formation itself illegal. With support of US only isreal development happened.zinoist are looting world .It's headquarters is Isreal. isreal world's misfortune and Jews are cause of major wars in the world. Israelies are Racist and war mongers.

  31. Knowledge transfer is essential : Jonathan Pollard & Rafi Eitan KNEW IT . Just 2 names among 1000s others

  32. Education rankings by country :
    South Korea
    Rank – 1st
    Math Score – 546
    Reading Score – 539
    Science Score – 554

  33. Finland
    Rank – 2nd
    Math Score – 541
    Reading Score – 536
    Science Score – 539
    Rank – 3rd
    Math Score – 534
    Reading Score – 524
    Science Score – 538
    New Zealand
    Rank – 4th
    Math Score – 529
    Reading Score – 521
    Science Score – 532
    Rank – 5th
    Math Score – 527
    Reading Score – 520
    Science Score – 529
    Rank – 6th
    Math Score – 526
    Reading Score – 515
    Science Score – 528
    The Netherlands
    Rank – 7th
    Math Score – 519
    Reading Score – 508
    Science Score – 527

  34. Belgium
    Rank – 8th
    Math Score – 515
    Reading Score – 506
    Science Score – 522
    Rank – 9th
    Math Score – 514
    Reading Score – 503
    Science Score – 520
    Rank – 10th
    Math Score – 513
    Reading Score – 501
    Science Score – 517
    Rank – 11th
    Math Score – 512
    Reading Score – 501
    Science Score – 514
    Rank – 12th
    Math Score – 507
    Reading Score – 500
    Science Score – 512

  35. Poland
    Rank – 12th
    Math Score – 507
    Reading Score – 500
    Science Score – 512
    Rank – 13th
    Math Score – 503
    Reading Score – 500
    Science Score – 508
    The United States
    Rank – 14th
    Math Score – 501
    Reading Score – 500
    Science Score – 508
    Rank – 15th
    Math Score – 498
    Reading Score – 497
    Science Score – 507
    Rank – 16th
    Math Score – 497
    Reading Score – 497
    Science Score – 503

  36. It's great that Israel is doing so well> Does this mean the United States can stop sending foreign aid? Since the 1970's, Israel has received more foreign aid per person than anywhere else on Earth. Israel receives more aid than all the countries of South America, the Caribbean, and Sub-Saharan Africa combined.

Leave a Reply

Your email address will not be published. Required fields are marked *