The Development of the IT Industry in Israel: Maximization of R&D as an Industrial Policy
The Development of the IT Industry in Israel: Maximization of R&D as an Industrial Policy
This chapter discusses the development of the information technology (IT) industry in Israel. Israel's IT industry provides an impressive success story. In less than twenty years, the country has emerged as a key player in global IT technology, with Israeli companies pioneering many hardware and software market niches, such as voice over Internet protocol, encryption, printed circuit board inspection, antiviral protection, digital printing, and firewalls. This small country of only six million has, after the United States and Canada, the highest number of IT companies listed with NASDAQ. In 2000 Israeli IT industrial export revenues exceeded $13 billion and accounted for more than seventy-one percent of all industrial exports. The state's almost exclusive focus on the enhancement of technological cutting-edge research and development capabilities has enabled firms to develop novel products based on the latest technologies.
Keywords: Israel, information technology, economies, products, firewalls, digital printing
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