Sign up now to receive our regular news briefs.

From Startup Nation to Scale Up Nation

April 24, 2012 1:43 pm 0 comments

Microsoft Israel Research and Development Center. Photo: Microsoft.

Most are accustomed to calling Israel a “start-up nation,” following the 2009 book by Dan Senor and Saul Singer titled as such. Jonathan Medved, however, is focused on the possibility of a “scale-up” nation.

“The next step is to scale up from start-ups to big global companies…to grow Israel’s companies is by focusing on solving big global problems,” says Medved, CEO of mobile software platform provider Vringo, Inc.

Medved—one of Israel’s leading serial entrepreneurs and venture capitalists, who made aliyah in the 1990s and now lives in Jerusalem—spoke to the Israel Business Forum at a gathering high above Times Square in New York City earlier this month.

In Israel, he says, “The culture of risk, of immigrants, of informality, the discipline of the army, even tolerance for failure, creates an unprecedented, unequaled atmosphere. The world is starting to understand that Israel is the place to come to—outside of Silicon Valley—for technical start-ups.” Israel provides a “dense” center for innovation, according to Medved, who called the country “start-up central.”

Medved’s story is iconic in the world of high tech. Starting by working out of a garage in Jerusalem, this entrepreneur has co-founded more than 60 Israeli high-tech firms. He writes about Israeli technological developments and is a member of the board of Israel21c.  He speaks about Israel’s technological and economic contributions to America and the world in venues as diverse as AIPAC (American Israel Public Affairs Committee), CUFI (Christians United For Israel), and numerous industry conferences.

Noting “this bedrock of warmth and support” and “unshakable” alliance between Israel and America, Medved says the two nations are “incredibly productive and dynamic countries that lead the world in innovation and in technology.”

Medved says that when people are asked about how often they touch Israeli technology, some scratch their heads and say, “I don’t do much with Israeli technology.”

Wrong, says the Vringo CEO.

“Each and every one of us is touching Israeli technology every single day, dozens of times—in computers, instant messages, cell phones, voice mail, flash memory,” Medved says. “Israeli innovation is making the world we live in exciting and dynamic and changing reality… This great alliance between [America and Israel] doesn’t get enough attention. That’s what I am talking about tonight.”

“There is no single major American high tech company—whether it’s Cisco or Broadcom or Microsoft or Google or anybody—who doesn’t do just enormous work in Israel,” he continues. “Samsung, the Korean operation, is now in Israel focused on sourcing Israeli technology.”

Innovation starts early in the lives of Israelis, as the Israel Defense Forces (IDF) instills values of competition and selectivity. “Our kids start competing before the end of high school—not to get into an Ivy League school but to get into, excuse the phrase, an Ivy League unit,” says Medved. After such special programs, “they’re ready for bear,” he says.

“Our army is very entrepreneurial—very much part of our strategic thinking,” Medved says.

Israel is creating jobs in America, Medved explains, citing companies such as Given Imaging in Georgia, Amdocs in Missouri and Netafim and Bright Source in California. Medved says virtually no American high-tech company is without an Israeli component. Microsoft just opened two new Israeli facilities, in Tel Aviv and Ra’anana.

The next step for Israel, Medved reiterates, is to “go from start-up nation to the scale-up nation.”

“Companies of size are being built In Israel,” he says. “I think it’s a great thing that we are selling these companies. [Sales] serve as a conduit for future purchases on the international market.

Medved notes that Israeli-developed products are appearing in unexpected places. Zoran chips, for example, are in virtually every consumer electronics product, and more Americans are taking medication produced by Teva Pharmaceuticals than that of any other producer in the country. He also highlights “unrivaled” Israeli water technology, including the reverse osmosis process invented at Ben-Gurion University.

“By 2014,” says Medved, “all drinking water in Israel will come from the sea.”

Medved admits, however, that “there are storm clouds” and problems to solve, such as the education dilemma in Israel—increasing numbers of students but no increase in faculty, underfunded universities, and a continuing brain drain among the most crucial.

JointMedia News Service asked Medved about investors’ reactions to political upheaval in the Middle East, as well as the impact of the possibilities of war or terrorist activity in Israel and nearby. He suggests that investors are discounting these risks.

“In technology, most investors are not thinking about it,” he says. “What’s crazy is that Israelis live with this…it’s weird, though Israel is perceived as unsafe, tourism numbers are through the roof. We have to do what we have to do to build the country. Investment builds psychological resilience.”

“It’s a great time in Israel,” he concludes. “Tourism is booming, the economic crisis appears past.”

The Algemeiner is the fastest growing Jewish newspaper in America.  Your one stop source for all news, commentary and analysis from Israel and Jewish communities around the world. Be sure to like us on Facebook and follow us on Twitter.

Leave a Reply

Please note: comments may be published in the Algemeiner print edition. Comments written in all caps will be deleted.


Current day month ye@r *

More...

  • Blogs Features Israel Geeks Out: Science, Art and Tech Event Embodies Jewish State’s ‘DNA’

    Israel Geeks Out: Science, Art and Tech Event Embodies Jewish State’s ‘DNA’

    JNS.org – The entrance to Jerusalem’s Sacher Park was transformed from April 25-27 by a fire-breathing robotic dragon, which flailed its arms and attempted to take flight. The robot, a signature feature at Jerusalem’s first-ever “Geek Picnic,” was one of more than 150 scientific amusements available for the public to experience. This particular dragon was designed by students from Moscow’s Art Industrial Institute in conjunction with the Flacon design factory, said Anatasia Shaminer, a student who helped facilitate the display. Children […]

    Read more →
  • Book Reviews Opinion The Syrian Virgin (REVIEW)

    The Syrian Virgin (REVIEW)

    The Syrian Virgin, by Zack Love. CreateSpace, 2015. The Syrian Virgin, by Zack Love, is a very interesting novel. Equally a political and romantic thriller, at times a real page-turner, it gets you intimately involved in the dire situation in today’s Syria, as well as in the romantic entanglements of its mostly New York-based characters — whose entanglements just might determine the fate of that dire situation in Syria. Along the way it introduces a really important idea that somehow […]

    Read more →
  • Features Unpacking the Nagorno-Karabakh Conflict and Its Ripple Effect on Israel’s Region

    Unpacking the Nagorno-Karabakh Conflict and Its Ripple Effect on Israel’s Region

    JNS.org – Aside from Israel itself, those with a vested interest in the Jewish state are accustomed to tracking developments related to Middle East players such as Iran, Syria, Jordan and Egypt. But much global attention has recently focused on the Caucasus region at the Europe-Asia border, specifically on the suddenly intensified violence between Azerbaijan and Armenia in the mountainous Nagorno-Karabakh area of western Azerbaijan. The Nagorno-Karabakh conflict, while not taking place in Israel’s immediate neighborhood, does have what one scholar called […]

    Read more →
  • Blogs Features Earth Day 2016: Israel Shines in Water Technology, Recycling, Renewable Energy

    Earth Day 2016: Israel Shines in Water Technology, Recycling, Renewable Energy

    JNS.org – On Friday, April 22, 196 nations across the world mark Earth Day, the annual day dedicated to environmental protection that was enacted in 1970. Not to be forgotten on this day is Israel, which is known as the “start-up nation” for its disproportionate amount of technological innovation, including in the area of protecting the environment. For Earth Day 2016, JNS.org presents a sampling of the Jewish state’s internal achievements and global contributions in the environmental realm. Water conservation Israeli […]

    Read more →
  • Arts and Culture World New Documentary Explores Holocaust Humor, Role That Laughter Played in Death Camps

    New Documentary Explores Holocaust Humor, Role That Laughter Played in Death Camps

    Holocaust humor and the role that laughter played in the lives of Jews during World War II are the focus of a documentary that made its world premiere on Monday at the Tribeca Film Festival in New York City. In The Last Laugh, first- and second-generation survivors, as well as famous Jewish and non-Jewish comedians, discuss their thoughts on when joking about the death camps is appropriate or taboo. “Nazi humor, that’s OK. Holocaust humor, no,” Jewish comedic giant, actor and filmmaker Mel Brooks says in the film. “Anything I […]

    Read more →
  • Arts and Culture Blogs Tragedy Culminates in ‘Celebration,’ Says Israeli Author Who Lost Son to Terror

    Tragedy Culminates in ‘Celebration,’ Says Israeli Author Who Lost Son to Terror

    JNS.org – Sherri Mandell’s life was devastated on May 8, 2001, when her 13-year-old son Koby was murdered by terrorists on the outskirts of the Israeli Jewish community of Tekoa. Yet Mandell not only shares the story of her loss, but also celebrates the lessons she has learned from tragedy. Indeed, “celebrate” is this Israeli-American author’s word choice. Her second book, The Road to Resilience: From Chaos to Celebration (Toby Press), came out earlier this year. The lesson: in every celebration, there is […]

    Read more →
  • Features Opinion For Alan Gross, Cuban Prison Didn’t Harden His Heart or Weaken His Ambition

    For Alan Gross, Cuban Prison Didn’t Harden His Heart or Weaken His Ambition

    JNS.org – Alan Gross used to be nothing more to me than a tragic headline. When I started my position at this news service in July 2011, Gross had been imprisoned in Cuba since December 2009 for what that country called “crimes against the state.” Gross, a subcontractor for the United States Agency for International Development, went to Cuba to help the Jewish community there access the Internet. After his arrest, he received a trial he describes as a “B movie,” […]

    Read more →
  • Arts and Culture Features New Movie Shows How Global Economic Instability Grew From Very Local Greed

    New Movie Shows How Global Economic Instability Grew From Very Local Greed

    JNS.org – When I saw the recent Academy Award-winning film “The Big Short,” I was struck by the sheer genius of the financiers who devised the schemes and packaged the loans for resale, but it left me with unanswered questions about how the properties these loans represented were moved. “The Big Short” was largely about paper transactions, big money, and wealthy investors, and it mildly touched on the way the actual end-users — the home buyers and brokers — played into this […]

    Read more →