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Government policies towards Israel's high-tech powerhouse

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  • Wonglimpiyarat, Jarunee

Abstract

Israel's Silicon Wadi is second only to US Silicon Valley in terms of business start-ups. The government policies play an important role in promoting innovation and driving the country towards a high-tech powerhouse. In this study the analyses, carried out through the lens of cluster and national innovation system (NIS), have shown that the thriving high-tech clusters are the result of government-led policies in creating the venture capital (VC) industry with the impacts of Yozma program. Importantly, the government financing did not crowd out but crowd in private investments. Israel presents an interesting case of the most successful Silicon Valley-style economy. The lessons of Israel in successfully climbing the technological ladder to become a high-tech powerhouse would be useful for other countries to learn how to promote high-tech clusters.

Suggested Citation

  • Wonglimpiyarat, Jarunee, 2016. "Government policies towards Israel's high-tech powerhouse," Technovation, Elsevier, vol. 52, pages 18-27.
    • Handle: RePEc:eee:techno:v:52-53:y:2016:i::p:18-27
    DOI: 10.1016/j.technovation.2016.02.001
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    2. Maximilian Benner, 2019. "Industrial Policy in the EU and Its Neighbourhood: Learning from Policy Experimentation," Economies, MDPI, vol. 7(2), pages 1-22, May.
    3. Shi, Huihong & Mu, Congming & Yang, Jinqiang & Huang, Wenli, 2021. "A Sino-US comparative analysis of the hi-tech entrepreneurial model," Economic Modelling, Elsevier, vol. 94(C), pages 953-966.
    4. Bonnín Roca, Jaime & Vaishnav, Parth & Morgan, Granger M. & Fuchs, Erica & Mendonça, Joana, 2021. "Technology Forgiveness: Why emerging technologies differ in their resilience to institutional instability," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    5. Grimsby, Gjermund, 2018. "Partly risky, partly solid – Performance study of public innovation loans," Research Policy, Elsevier, vol. 47(7), pages 1344-1365.
    6. Ramya Ravi & Manthan D. Janodia, 2022. "University-Industry Technology Transfer in India: a Plausible Model Based on Success Stories from the USA, Japan, and Israel," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(2), pages 1692-1713, June.
    7. Benner, Maximilian & Bieringer, Lukas & Knaupp, Matthias & Wittemaier, Jana & Wruck, Adrian, 2016. "Towards a Smart Specialization Strategy for Haifa, Israel," MPRA Paper 73299, University Library of Munich, Germany.
    8. Bonnín Roca, Jaime & Vaishnav, Parth & Morgan, M.Granger & Mendonça, Joana & Fuchs, Erica, 2017. "When risks cannot be seen: Regulating uncertainty in emerging technologies," Research Policy, Elsevier, vol. 46(7), pages 1215-1233.
    9. Rolando Vaz, 2023. "Firm growth in the Portuguese footwear industry: the location dilemma," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 70(2), pages 407-427, April.
    10. Maximilian Benner, 2023. "Making spatial evolution work for all? A framework for inclusive path development," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 16(3), pages 445-462.
    11. Amaral, Afonso & Morgan, M. Granger & Mendonça, Joana & Fuchs, Erica R.H., 2023. "National core competencies and dynamic capabilities in times of crisis: Adaptive regulation of new entrants in advanced technology markets," Research Policy, Elsevier, vol. 52(4).

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