Silicon Wadi
It spans the Israeli coastal plain, and is cited as among the reasons why the country has become known as the world's "start-up nation" (see science and technology in Israel).
[1][2] The highest concentrations of high-tech industry in the region can be found around Tel Aviv, including small clusters around the cities of Raʽanana, Petah Tikva, Herzliya, Netanya, Rehovot, and Ness Ziona.
[5] In the 1970s more commercial innovations began, many of which were based on military R&D, including: Scitex digital printing systems, which were based on fast rotation drums from fast-rotation electronic warfare systems,[5] and Elscint, which developed innovative medical imaging and became a leading force in its market.
[7][8] Slowly, the international computing industry shifted the emphasis from hardware (in which Israel had no comparative advantage) to software products (in which human capital plays a larger role).
The 1990s saw the real takeoff of high-tech industries in Israel, with international media attention increasing awareness of innovation in the country.
[5] In 1998, Mirabilis, an Israeli company that developed the ICQ instant messaging program, which revolutionized communication over the Internet,[10] was purchased by America Online (AOL) for $407 million in cash, 18 months after it was founded and having no revenues.
Over fifty Israeli companies had initial public offerings on NASDAQ and other international stock markets during that period.
[9] Due to the small size of Israel, the concentration of high-tech firms across much of the country is enough for it to be recognised as one large cluster.
Most activity is located in the densely populated areas of metropolitan Tel Aviv, Haifa (Matam), and Jerusalem (Technology Park, Malha, Har Hotzvim and JVP Media Quarter in Talpiot), and the Startup Village Ecosystem in the Yokneam area, although some secondary with additional activity include the corridor to Beer Sheba, including Kiryat Gat, and the Western Galilee.
[5] In 2006, more than 3,000 start-ups were created in Israel, a number that is only second to the U.S.[21] Newsweek Magazine has also named Tel Aviv as one of the world's top ten "Hot High-Tech Cities".
[26][27] The origins of the now thriving venture capital industry in Israel can be traced to a $100 million government initiative in 1993 named the Yozma program ("Initiative" in Hebrew); which offered attractive tax incentives to any foreign venture-capital investments in Israel and offered to double any investment with funds from the government.
[28] Israel's thriving venture capital industry has played an important role in financing and funding Silicon Wadi.
[30] The March acquisition of Israeli company Mellanox for $6.9 billion by Nvidia Corporation is a definite contender for the largest M&A deal in 2019.
[29] As of 2010, more than 35,000 Israeli personnel were employed in various research and development centers operated by multinational corporations with a presence across Israel.
In recent years, East Asian multinational corporations and investors, especially from Mainland China, have actively invested and opened up offices in Israel, including Chinese technology giants such as Alibaba, Baidu, Tencent and Kuang-Chi.
