09 INTERNATIONAL TECH HUB | BDO LLP
ISRAEL
WHERE ARE THE KEY TECH HUBS LOCATED? While other countries that offer strong benefits for international tech companies have clusters and hubs widely dispersed around their territory, in Israel everything is very concentrated and condensed. The country is no more than about three hour’s drive, end to end. While there are indeed specific areas focused on tech, it’s worth remembering that all these are within a hour or two’s drive of each other, so from a global perspective the whole country could be seen as one big tech hub. The main tech activity takes place in two sites, each about 50 km from Tel Aviv – one to the north, and one to the south. Tel Aviv and its suburbs have historically always been the centre of Israel’s tech activity, and it all happens here within an area of about a couple of dozen square kilometres. Because of the country’s limited footprint and the critical importance of tech and startup culture to the country, the state has also in the last couple of years begun developing some new areas, such as in Jerusalem, Haifa, Kiryat Gat and the Yokneam area. The government is keen to encourage investment and expansion into these areas, and there are tax incentives and grants available for businesses that move into and employ people in these areas.
Tomer Nitzan, Presiding Officer, US-Israel Desk, MBA Tomer has worked extensively with international companies, and is an expert in resolving cross-border business challenges around culture, set-up and access to funds and markets. The US-Israel desk he runs is a joint venture between BDO Israel and BDO USA.
Yaniv Cohen, Partner, Head of the Technology & Global Cluster, CPA
Yaniv specialises in providing consulting and accounting services to a broad range of high-tech industries, from start-up companies to mature international and publicly quoted companies
OVERVIEW Israel offers tech investors and internationalising businesses a thriving culture of entrepreneurial innovation, serviced by a uniquely talented pool of homegrown specialists. WHAT ARE THE BENEFITS OF ISRAEL AS A PLACE TO EXPAND INTO? Israel is sometimes called ‘Startup Nation’ and it’s not hard to see why. With a population of around 8.5million, it boasts the highest number of startups per capita, at around startup for every 1400 people. In such a concentrated, entrepreneurial culture, it’s very easy to make connections and find help because the networks are very strong and there’s a high degree of connection between businesses and communities. With few natural resources, limited agriculture and a relatively small labour force, tech is of overwhelming importance to the Jewish economy. Some 40% of GDP and a similar percentage of exports flow from tech. As a result, the state is highly focused on developing Israel’s capabilities still further, and attracting investment from international companies. These companies, in their turn, benefit from the extraordinary pool of home-grown tech talent (strengthened by its links to the military) and the vibrantly innovative culture. Many global players come here to develop their next innovation: you could see Israel as the sandbox of the international tech scene.
ISRAEL OFFERS TECH INVESTORS AND INTERNATIONALISING BUSINESSES A THRIVING CULTURE OF ENTREPRENEURIAL INNOVATION
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