Israeli Prime Minister Netanyahu's Google Doodle. Source: P.M. Netanyahu / Facebook.

Google Inc. Chairman Eric Schmidt on Monday told a group of Israeli entrepreneurs in Tel Aviv that their city was a very close second to Silicon Valley, Israeli business daily Globes reported on Wednesday.

“It is hard to see such things elsewhere in the world outside Silicon Valley,” Schmidt said. “Nowhere in the world is comparable, not even Boston and New York.”

The executive was in Tel Aviv, his second visit to Israel, to inaugurate the Innovation Endeavors incubator and venture capital fund, where Schmidt is a founding partner.

Globes noted that some advice he offered differed from what Israeli start-up entrepreneurs had been told.

“You should exploit the talent here and if necessary, hire an American manager to run the U.S. branch,” Schmidt said. “The Israeli CEO should stay close to the development center, because that is the most important thing.”