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...

  • Arts and Culture Middle East Larry King Asks Saudi Arabian Fan If Taking Pictures With Jews Is Permitted

    Larry King Asks Saudi Arabian Fan If Taking Pictures With Jews Is Permitted

    Jewish former CNN host Larry King asked a Saudi Arabian fan if taking pictures with Jews is allowed in his country, before agreeing to pose for a photo with the man, The New York Times reported on Wednesday. The world-famous interviewer was leaving the Ritz Carlton hotel in Washington, D.C. with a New York Times reporter when a “dark-skinned man” approached and asked to take a picture with him, according to the publication. Whereupon, King asked the fan where he was from. When the man said Saudi […]

    Read more →
  • Europe Sports Britain’s Lord Sugar Says Synagogues Will Be Empty With Yom Kippur Matchup of Jewish-Supported Soccer Teams

    Britain’s Lord Sugar Says Synagogues Will Be Empty With Yom Kippur Matchup of Jewish-Supported Soccer Teams

    British-Jewish business tycoon Lord Alan Sugar joked on Wednesday that London synagogues will likely be empty during Yom Kippur with congregants fleeing to watch the match-up of two leading English soccer teams known for having hordes of Jewish fans. “Spurs V Arsenal cup game drawn on most important Jewish festival,” Lord Sugar pointed out on Twitter. “Both teams have loads of Jewish fans. Conclusion Synagogues will be empty.” North London rivals Tottenham Hotspur and Arsenal FC will go head-to-head in the Capital One Cup third-round […]

    Read more →
  • Arts and Culture US & Canada Jewish Men Pass Jimmy Kimmel Social Experiment, Rescuing ‘Spongebob’ in Distress (VIDEO)

    Jewish Men Pass Jimmy Kimmel Social Experiment, Rescuing ‘Spongebob’ in Distress (VIDEO)

    Two Jewish men were the only unwitting participants in a social experiment conducted by Jimmy Kimmel, for his popular TV show. As part of a candid-camera-like sketch featured Monday night on Jimmy Kimmel Live, the host devised different street scenes to observe human behavior — in particular, to see how long it would take people walking down California’s bustling Hollywood Boulevard to notice and interact with others in distress. One scene involved a man in a Spongebob Squarepants costume who had “fallen down” on the sidewalk and needed help […]

    Read more →
  • Education US & Canada International Jewish Organization Blasts Israeli-Born Star Natalie Portman for Comments on Holocaust Education

    International Jewish Organization Blasts Israeli-Born Star Natalie Portman for Comments on Holocaust Education

    A major Jewish organization rebuked actress Natalie Portman on Monday for saying in a recent interview that Jews put too much emphasis on teaching about the Holocaust relative to other genocides. The Israeli-born movie star told the U.K.’s Independent that the Jewish community needs to examine how much focus it puts on Holocaust education over other issues. She said she was shocked when she learned that a genocide was taking place in Rwanda while she was in school learning only about the horrors of the […]

    Read more →
  • Arts and Culture Israel Book Draws Parallels Between Holocaust and Palestinian Nakba, Sparks Outrage

    Book Draws Parallels Between Holocaust and Palestinian Nakba, Sparks Outrage

    JNS.org – A new book that draws parallels between the Holocaust and the Palestinian Nakba (the Arabic term for the displacement of Palestinian refugees during Israel’s War of Independence) has sparked outrage ahead of an official book launch, to be hosted by the Van Leer Jerusalem Institute on Sept. 7. The Zionist organization Im Tirtzu wrote a letter to the institute demanding that it cancel an event it planned in honor of the book’s authors, under the title The Holocaust and […]

    Read more →
  • Education US & Canada Natalie Portman Says Holocaust Education Shouldn’t be Used for ‘Fearmongering’

    Natalie Portman Says Holocaust Education Shouldn’t be Used for ‘Fearmongering’

    Famed actress Natalie Portman warned on Friday against the use of Holocaust education to evoke fear and paranoia. In an interview with the U.K. Independent she added that the trauma should make Jews more empathetic to others who have also experienced hatred. “Sometimes it can be subverted to fearmongering and like ‘Another Holocaust is going to happen,’” the Israeli-American star said. “We need to, of course, be aware that hatred exists, antisemitism exists against all sorts of people, not in the same way. I […]

    Read more →
  • Book Reviews Commentary A Righteous Gentile Navigates the Sharkpool of Washington’s Middle East Correspondents (REVIEW)

    A Righteous Gentile Navigates the Sharkpool of Washington’s Middle East Correspondents (REVIEW)

    The Tribalist, by Louis Marano, is ostensibly a work of fiction but at its core a kind of love song by a gentile journalist for the State of Israel, and especially its secular Zionist core. (Because of the relentless attacks by left-wing polemicists on Israel’s allegedly “messianic” fringe, it’s often forgotten that most of Israel’s founders and all its leaders have been secular Zionists.) The author, the product of an Italian-American family in Buffalo, served two tours of duty in […]

    Read more →
  • Food Jewish Identity Rugelach Roundtable: Does Beloved Pastry Need Dairy to Taste Good?

    Rugelach Roundtable: Does Beloved Pastry Need Dairy to Taste Good?

    JNS.org – Rugelach (singular: rugala) are a beloved traditional Jewish pastry, with a quirky history to boot, but they often present a kosher conundrum. Though parve rugelach are often a preferred dessert after a meat meal for those observing kosher laws (which stipulate a waiting period between eating meat and dairy), some of today’s most popular rugelach are known for their dairy fillings. Pastry chef Paula Shoyer—author of the books “The Kosher Baker: Over 160 Dairy-free Recipes from Traditional to Trendy” and […]

    Read more →