Hi-Tech in Israel
Israeli industry lived a deep overhaul in the 1990s. Originally based on food, agricultural, plastic and textile industries, it moved progressively towards electronics and electro-optics, software, medical equipment, pharmaceutical products and biotechnologies. This transformation was mainly due to the development of the military industry and the transfer of its technology towards the civilian, joint to the immigration of an ex-soviet population with high academic level. These changes have been set in motion by the Office of the Chief Scientist of the Ministry of Industry and Trade (OCS) based on the 1985 law for the encouragement of industrial R&D. Its budget increased from 136 millions dollars in 1990 to 428 in 1999, and has been distributed on average in 1999 as follows: 40% for medical equipment, 29% for telecommunications and software, 22% for electronics and electro-optics, 3% for chemistry and biotechnology.
The OCS gave the Israeli industrial R&D an international dimension and paved the way for bilateral funds with the United States, Canada, and lately Singapore and the UK, as well as collaboration agreements with Europe: Eureka, and bilaterals with the Netherlands, France, Portugal and Spain. In 1996, Israel was the first non European country to participate in the 4th Framework Program for R&D of the European Union. Thus, the MATIMOP, the Israeli center for industrial R&D, reinforced its synergies with its European equivalents, as the French ANVAR, the Dutch SENTER, the Portuguese INICT and the Spanish CDTI.
Electronics
The Israeli electronic industry, including telecommunications, advanced software, medical electronics, defense systems, emerged in the last decade. Exports of electronic material and communication (+ 138% increase in 2000 over 1999), and of medical and scientific instrumentation (+34%), spearheads of the Israeli economy. They represented 31% of goods exported in the 2000.
Israel is a global leader in the micro-electronics, electro-optics and semiconductors sectors. The Israeli firms are especially interested in digital signaling chips (Intel Israel, Digital Processor Israel), microprocessors and components testing (Motorola Israel) and high speed communication and data transmission, as well as low cost satellite communications.
Software
The software industry occupies an essential place in Israeli industrial production and exports, especially in the electronics and telecommunications sectors. The computer sector constitutes one of the fastest growing area, with total sales exceeding 10 billions $ or more than 30% of the Israeli exports. These results are the fruit of a particularly effective teaching network (universities + army) from which emanate a nucleus of mathematicians, programmers, analysts and remarkably formed system designers. As a result, 15% of software in the world is prepared in Israel in 2000.
The Israeli software industry, mainly relying on SMEs, has increased its activity by focusing on niches such as compression, artificial intelligence, neurons networks, CAO. Israeli firms are also competitive in educational software, especially GILAT Communications’ telecommunication. Israel is a world leader in fiber optics, integrated circuits inspection, thermal systems for night vision and robotics.
Medical Technologies and Biotechnology
Medical doctors constitute 1.1% of the Israeli population, the highest rate in the world. The Israeli medical technology industry is one of the biggest successes for technological growth, innovation and profits. The presence of sophisticated industries in electronics, computer science and precision engineering, permitted to successfully develop a competitive industry on an international scale in the domain of medical outfit. Israel specializes in the sectors of high-level medical diagnosis, scanners, electrocardiograms, and general equipment for hospitals.
The Israeli pharmaceutical industry also achieves a high standard: the American Food & Drug Administration (FDA) even permitted to perform its approval tests in Israel. On the other hand, many Israeli specialists appear among the first-rank world specialists in the domains of immunology, cancerology and genetic engineering (Weizmann Institut). The Israeli research on Alzheimer, Parkinsons and other central nervous systems diseases, produced important results. Besides, Israel is one of the rare countries that created a biotechnical industry already producing ratified medicines such as the interferon – beta by Interpharm, the growth hormone by Biotechnology General, or the fast AIDS diagnosis kits and hepatitis by Orgenics.
Environmental technologies
The mastery of waters and the exploitation of solar energy constitute the two main realizations of Israel concerning ecology. Two technological solutions based on Israeli expertise concerning filtering have been developed in order to guarantee the optimal use of the hydraulic reserves of the country: the use of non-drinkable brackish waters and the recycling of urban vestigial waters for irrigation. Israel is also the country that exploits the more solar energy, with 3% of the solar energy consumption through sensors and water heater in the world.
Several other ecological techniques have been developed in Israel: the use of hydrocarbons-ingesting bacteria, the sowing of the clouds to accelerate rains, or the use of natural predators instead of chemicals. Finally, some companies such as Israel Aircraft Industries and Elbits realized an air pollution detector using laser.
See also the website of the Israeli Ministry of Foreign Affairs.
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