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Tel Aviv Innovation System

In: Successful Innovation Systems

Author

Listed:
  • Ido Garbi

    (IGPT Innovation)

  • Ludovit Garzik

    (Austrian Council for Research and Technology Development, Innovationorbit)

Abstract

The Tel Aviv ecosystem is one of the most vibrant innovation ecosystems in the world. It is fast, dynamic, direct, and—most of all—extraordinarily successful. This chapter dives into some of the elements that make it so successful, as well as the lessons one can take from Tel Aviv and implement in other ecosystems. Even though the Tel Aviv ecosystem relies almost entirely on private capital, the market picture is quite different when the scope is limited to seed-level venture capital. The Israeli government has managed to attract foreign capital into the ecosystem through a combination of financial incentives, lax labor laws, and a policy of keeping its regulatory power away from the innovation markets. That governance style was not a product of design, but rather of necessity. Culturally, Tel Aviv’s emphasis is on abstract thinking throughout life and its no-barrier culture has assisted in making this ecosystem into a software powerhouse. A SWOT analysis of the ecosystem provides key factors in a format easily comparable with other surveyed ecosystems. This analysis is expected to be valuable to ecosystem designers, investors looking to expand their reach, and entrepreneurs looking for the ideal ecosystem for their enterprise.

Suggested Citation

Handle: RePEc:spr:fuobcp:978-3-030-80639-2_16
DOI: 10.1007/978-3-030-80639-2_16
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