Israels Electronics and Software Industries

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IsraelsElectronics andSoftware Industries
Uri Har, Director General, IAEI
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ISRAEL IN A GLANCE - 2004
Population
6.75 M
Households 1.8 M
Urban Population 91.5
Area - grand total 22,145 sq.
km GDP US
115.0 B
GDP Per Capita US 17.0 K
Fixed line Telephone Subs
3.2M Mobile
6.5M (96 penetration)
Internet Users 2M (ADSL 1M)
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THE ELECTRONIC INDUSTRIES IN ISRAEL
Beginning 1967 - after Military Embargo
Following the Six Day War Pattern of
Growth Maintenance Subcontracting Build
to Print Build to Specifications
Own RD Civilian Equipment Spin-off from
Defense Products Technologies Multinationals R
D Center Production  
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World Electronics Software Industries Growth
Rate over the period 1970 2004 Source
DECISION ETUDES CONSEIL - FRANCE

Yearly Global Change
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Israeli Electronics Software Industries Growth
Rate over the period 1984 2004 vs. Global
Industries

Yearly Israeli Change
Yearly Global Change
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ISRAEL ELECTRONICS SOFTWARE INDUSTRIES SALES
EXPORT (M)
15,800
15,500
14,750
13,170
13,040
11,530
10,380
9,980
7,800
6,840
6,000
DOMESTIC
5,310
4,596
EXPORT
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ISRAEL ELECTRONICS SOFTWARE INDUSTRIES EMPLOYMEN
T AND MANPOWER STRUCTURE
66,300
62,000
58,800
57,200
56,200
54,800
53,400
53,500
53,400
50,500
45,000
42,700
39500
62
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ISRAEL ELECTRONICS SOFTWARE INDUSTRIES EXPORTS
BY INDUSTRY GROUP 2004 13,400 M
Medical Systems
Civilian Comm. Telecomm.
7.8
21.8
Software
22.4
16.5
14.0
17.5
Components
Defense Systems
Industrial Equipment
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ISRAEL ELECTRONICS SOFTWARE INDUSTRIES EXPORTS
BY REGION 2004 13,400 M
EUROPE
USA
35
38
5
22
ROW
ASIA
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HIGH-TECH CHARACTERISTICS IN ISRAEL
Strengths Entrepreneurial Spirit Highly
Qualified Scientists Engineers Proven
Track Record  Engines Government Support
(RD, Investment) Venture Capital Results
Strong RD New Technologies and
Applications Numerous New Start-ups
International Involvement (Acquisitions
Subsidiaries)
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Scientists Engineers per 10,000 pp
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ISRAEL OECD VC INVESTMENTSAS A SHARE OF GDP
(1998-2001)
1.3
0.7
0.55
0.3
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Expenditure on Civilian RD as a percent of the
GDP in Israel and in OECD Countries (2001)
Source CBS
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RD in Electronics and ICT as of GDP

Source IVC Research Center, VenfureOne
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START-UPS

• Main Fields of Activities
• Telecommunications
• Information Technologies
• Semiconductors for
• Medical
• Conversion of Military Technologies to Civilian
  Products.

Mobile, 3G, Broadband, Wi Fi, Internet, Data
Comm, Security

Fabless

New Applications to Reduce Health-Care Costs
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ISRAELI SOFTWARE INDUSTRY
Applications Enterprise Software
Software for
Telecom
Healthcare

Industrial Homeland Security
Education
Training Internet e-Business /
e-Commerce / e-Learning /
e-Government Multimedia Audio /
Video
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ISRAELI SOFTWARE INDUSTRY
Operations Subcontracting
Turnkey Projects
Products IT Services
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IT TECHNOLOGIES
IT Security Telecom, Internet, Data
Communications 3D Analysis Software
Chipsets Applications Medical (CT,
MRI, GI, Dents) Manufacturing
Control Broadcasting Memory Storage
Retrieval Business Technology
Optimization Telecom Billing Manufacturing
Process Management Software Quality Assurance
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Potential for Cooperation Russia - Israel
Short Distance between Countries Daily
Flights Common Culture and Language High
Level of Education Completing Added Values
How to Enhance Cooperation Much more
marketing in various ways Exchanging
Delegations
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ISRAEL MARKET CHARACTERISTICS
Small Country (6.75 million) High Average
Income Open for New Products Very Quick
Penetration of New Products No Local
Manufacturers of Consumer Items Open for
International Competition
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ISRAEL ELECTRONICS SOFTWARE INDUSTRIES FIXED -
MOBILE TELEPHONE LINES
6
,
500
99 Penetration
6
,
000
5
,
500
5
,
000
4
,
500
Subscribers (thousand)
4
,
000
3
,
500
53 Penetration
3
,
000
2
,
500
2
,
000
1
,
500
1
,
000
500
0
93
94
95
96
97
98
99
2000
03
01
02
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ISRAEL ASSOCIATION OF ELECTRONICS SOFTWARE
INDUSTRIES
Thank You