"In many countries in the developing world, and especially in countries like China and India, the governments do a lot to encourage knowledge-intensive industries, because they understand that these are their main growth engines. Says Shlomo Gerdman, chairman of the Ra'anana conference that is going to be held next week
"The growth engine of Israel's economy is in danger, not only venture capital investors are changing their tastes. In many countries in the developing world, and especially in countries like China and India, the governments do a lot to encourage knowledge-intensive industries, because they understand that these are their main growth engines. There is no reason for us not to adopt a similar strategy in Israel in order to secure our future," said Shlomo Gerdman, chairman of the Ra'anana conference, in light of publications that venture capital investments in China surpassed venture capital investments in Israel for the first time. "We must advance and carry out a multi-year plan, which will deal with the essential issues for the knowledge-rich industries in Israel, with the aim of planning the future and anticipating a cure for Mecca," said Gerdman.
From an examination by members of the Ra'anana conference on the national high-tech policy that will be held on June 24, it appears that venture capital investments in China exceeded the amount of investments in Israel already in 2005, while in 2007 venture capital investments in China stood at 3.3 billion dollars - twice as much as capital investments The risk in Israel, and 50% more than the investments in China in 2006. In Israel, on the other hand, the increase between 2006 and 2007 was minor, amounting to only 8%.
These data indicate a change in trend, according to which venture capital investors are flocking to China and other countries in the East, which represent business potential for them. In 2002, venture capital investments in China were only 500 million dollars compared to 650 billion dollars in Israel, and within five years the investments in China increased XNUMX% and reached twice as much as the investments in Israel.
In China and India alone, about 800 engineers are added every year, compared to Israel, where only 8,000 engineers are trained each year. Unlike Israel, the governments also invest a lot of money in the development of their advanced industries, building communication infrastructures, transportation, buildings and more.
Gordman noted that "global developments pose challenges and endanger the success and prosperity of the Israeli high-tech industry, which constitutes 50% of Israel's total exports, as the main source of its continued growth. Today, Israel's situation is deteriorating compared to many countries in Eastern Europe and Asia, which make sure to invest a lot of resources to encourage their high-tech industries and build an educated and skilled workforce."
"I am very afraid that if we do not act today, the industry will be damaged within a few years, and then it will be too late to repair the damage. Without long-term planning - this can be a cry for generations. In order to change the situation, we call for the formulation of a national plan, which will be formulated jointly by representatives of the industry and the government, and which will guarantee that the hi-tech industries in Israel will continue to flourish even in five and 10 years," said Gerdman.
As part of the Ra'anana conference, there will be discussions on issues shaping the Israeli hi-tech industry, including technologies, education, funding sources and brain drain. Among the participants in Knam will be Shay Agassi, CEO of Better Place; Ruth Alon, co-director Pitango Fund; Aharon Beit Halami, director of the Eurofund fund; Dr. Shuki Gleitman, director of the Platinum Fund; Shlomo Gerdman, CEO of ISG; Chairman of the Ra'anana Conference, Dan Wilensky - Chairman of Applied Materials and former CEO of the BIRD Fund; Yehuda Zispal, president of Red Bint and chairman of the Electronics Industries Association; Dr. Giora Yaron, chairman of Accent; Yossi Sela, co-director of the Gemini Fund; Maxine Fassberg, CEO of Intel Israel; Dr. Miki Roda, Vice President for Growth Projects
BMW; and others.
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An interesting interview conducted with Dr. Erez Cohen from the Ariel University Center, about the bursting of the high-tech bubble:
http://actv.haifa.ac.il/programs/Item.aspx?it=1539
Error:
The point is that technological advancement is an absolute matter and not a relative one.
If the Indians pass us, we can, of course, say that it is not wise because they are more numerous and have more resources, but it will not change the fact that we have lost the primacy.
If we invest less than India invests we will lose preeminence. It's that simple.
Since the global economy every sane person buys only the finest products among those offered by all the countries of the world, no one will buy our products.
I don't think I understand something.
China and India have more high-tech workers than citizens in the State of Israel, and yet they only invest twice as much money there... and is that a bad thing?