What’s So Exciting About Israeli High-Tech?

I don’t know what image pops into your mind when you hear people talk about Israel as a high-tech nirvana, but the truth is there’s not a whole lot to see. Unless tall, sleek buildings and endless low-rise R&D centers pump your adrenaline, Israel’s tech industry doesn’t offer a whole lot of amazing visual stimuli.

But when you realize what the Israeli technology sector creates – well, that’s an altogether different story.

Israeli scientists invented the cell phone, the latest Pentium microprocessors that power your laptop computer, the flash drive that you probably have in your pocket right now, not to mention thousands of medical, agricultural and energy-saving innovations that have changed the way people around the world live.

That’s why Microsoft, Motorola, Cisco, Oracle, Intel, and so many other global technology leaders invest billions in Israeli research, development and production facilities – it improves their bottom line. When Warren Buffett – probably the world’s most savvy investor – made his first investment in a non-US company, it was an Israeli manufacturer of high-tech blades for industry. He paid $4 billion for 80% of one of Israel’s best-run companies, Iscar, and he’s gone on record saying it was a smart investment that convinced him to find more opportunities in Israel.

During a quick 2008 visit to Israel where he inaugurated a giant new R&D facility, Microsoft CEO Steve Ballmer said, “Microsoft is almost as much an Israeli company as it is an American company.” You can be sure he wouldn’t say that about any other country.

You may think of Israel as the land of miracles. Today, it’s a nonstop source of innovation that can truly be described as an ongoing series of miracles. That’s the subject of a new book, Start-up Nation: The Story of Israel’s Economic Miracle, by Dan Senor and Saul Singer. Check out the book, or click below to see an interview with one of the authors.

When you get to Israel, you might not see the full extent of the economic miracle right away. But when you meet Israelis, ask them about it. You’re sure to hear an amazing story.