The Israeli Cleantech

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The Israeli Cleantech By Israel Drori,
Shmuel Ellis, Mali Nevo Faculty of management
Tel Aviv University
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Basic data

• There are currently 419 cleantech companies
  operating in Israel.
• These companies comprise just over 10 of the
  total of Israeli High-tech companies
  (approximately 4,015 companies in total).
• The Israeli cleantech sector produced in 2008 an
  estimated total of products and services worth
  between 2 and 2.5 Billion US , which constitute
  between 0.8 and 1 of the total global cleantech
  market.

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Five key aspects of the Israeli cleantech sector

• Overall growth
• Sub-sectors within the cleantech industry
• Evolutionary stages of Israeli cleantech
  companies
• Company size
• Ownership, Capital raised and Annual revenues

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1. Overall growth
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Cleantech companies in Israel by year of
establishment
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Cleantech companies in Israel by year of
establishment
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2 Sub-sectors within the cleantech industry
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Sub-sectors within the cleantech industry
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3. Evolutionary Stages of Israeli cleantech
companies
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• Evolutionary stages
• Seed stage
• Research and Development (RD) stage
• Initial Revenue stage
• Revenue Growth

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4. Company size
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Company size
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5. Ownership, Capital raised and Annual revenues
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Average capital raised by cleantech companies by
sub-sector (in millions of US), 2007-2008
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Average revenue in 2008 of cleantech companies by
sub-sector (in millions of US )
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The Israeli Cleantech Study

• To propose a complementary, genealogical
  approach to the traditional clusters approach of
  industrial sectors evolution
• To explore genesis events and environmental
  characteristics that shape the entrepreneurial
  culture and strategy of the cleantech industry
  along time?
• To investigate how and why cleantech firms in the
  different sub sectors (energy, water,
  agriculture, environment, material) evolve?
• To study the origin of different founding
  models of the Israeli cleantech firms, and their
  relations with existing clusters

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Genealogy

1. Genealogy is a record of descent or linage of a
   group from its ancestors to the recent
   generation.
2. Each genealogy is originated from founding
   parents which started the entire genealogy.
3. The progenies birth origin is diverse.
4. It reflects the degree of association and
   proximity within a network of relationships along
   time, characterized by path dependent
   relationships among firms along a lineage system.
   
5. The evolutionary trajectory of organizational
   genealogy is influenced by its member affinity,
   mainly parent-progenies relations (Phillips,
   2000 2005).

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Example of Genealogy, ITC sector ( RAD- Founded
1981)
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The Israeli Cleantech sample
121 companies from 419 28.87
174 entrepreneurs from 721 24.13
Average entrepreneurs par company 1.43
Max number of entrepreneurs 5
Min number of entrepreneurs 1
s.t 0.8
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Networks of cleantech sub-sectors
Energy
Agriculture
Water
Environment
Materials
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Origins of founders
IDF
Cleantech
Energy Industry
Biotech
Hi tech
Academy
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Origins of founders
Hi tech
Materials
Academy
Agriculture
Environment
Energy
Water
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Entrepreneurs percentage Sector
47 27.01 Hi tech
46 26.44 Academy
12 6.90 Biotech
11 6.32 Energy Industry
9 5.17 IDF
8 4.60 Cleantech
5 2.87 Agriculture
5 2.87 Israeli defense industries
5 2.87 Vanture Capital
4 2.30 Engineering
3 1.72 Banking
3 1.72 Medical devices
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Entrepreneurs percentage Sector
2 1.15 Counselling
2 1.15 Environmental Services industry
2 1.15 Government
2 1.15 Investment
1 0.57 Architecture Planning industry
1 0.57 Food industry
1 0.57 Law
1 0.57 Low tech
1 0.57 media
1 0.57 Municipal
1 0.57 Outsourcing industry
1 0.57 Shipping
174 100 sum