Israel. Those three short syllables alone are enough to reverberate through the hearts and souls of historians, politicians, theologians and layman alike. But for many entrepreneurs, investors and venture capitalists, mention of the Jewish state brings a wealth of fond feelings. Dominant in nearly every industry, this shining democracy in the Middle East has its hands in a myriad of global movements and is kneading the dough of humanitarianism throughout the world. Plagued by terrorism, anti-Semitism and diplomatic doldrums since its birth, Israel has freed itself from the constraints of adversity, emerging as a leader in the global economy with no plans of slowing down.
Beyond clichés of conflict and controversy, Israel has a wildly diverse population demographically. It is a technologically advanced market economy with a strong admiration for innovation as well as for the entrepreneurial spirit. A hybrid of tremendous zeal and ambition exists in Israel – which many attribute to the country's infancy – that seems to drive the relatively new nation forward to noteworthy achievement.
One example of someone charmed by this spirit is David G. Furth, Ph.D., Collections Manager at the Smithsonian Institution in Washington D.C. For Furth, this enthusiasm for the entrepreneurial spirit enabled him to utilize some of Israel's valuable resources, but also to give back to the country that provided him with a multitude of possibilities.
Following an encounter with a recently retired general in the Israel Defense Forces, Furth – intrigued by the prospects that opened up to him – migrated to Israel. After volunteering on a nature reserve in the Dead Sea coast oasis called Ein Gedi, he was hooked. "My experiences at the Dead Sea are what really attracted me to Israel," he said with a smile. Furth soon forged a bond with Israel that strengthened as his career continued to move forward over time. Close contact with Israeli scientists opened new doors as Furth became a post-doctoral fellow and Entomological Consultant at the Hebrew University of Jerusalem.
Furth soon began working on multiple projects when Israeli government agencies, research institutes and conservation organizations sought him out for his strong knowledge of collections management, including restoration and storage for the bulk of the 5 million entomological specimens that will soon be housed in The Steinhardt National Collections of Natural History building. This Tel Aviv University-based mega-complex will be part of the largest center in Israel for biodiversity research, conservation and education.
But as an American in foreign territory, Furth had his fair share of challenges. "Sure there are the politics involved, maybe even some bureaucracy. (In the beginning) I had no knowledge of the language but many people spoke English," he said. Although Furth and his colleagues shared a common interest in the disciplines of biological science, culturally speaking, he was at a loss. Israelis, who many people say are calloused from years of war and conflict, offer up a little more "chutzpah" than their American counterparts. "I was immersed and isolated at the same time – but I soon integrated," Furth told “The Suit.” “One issue is getting the staff to work together as a team,” he said, adding, "But it's natural; that would be true no matter where you are."
For Furth, scientific fieldwork in Israel came about because of its abundant biodiversity, especially in comparison to other, much larger, countries in the region. Home to 140 butterfly species, 112 varieties of Acridoidea (superfamily of grasshoppers), and to countless other unique life forms, Israel is a hotbed for just the type of research that Furth – an entomological pioneer – passionately pursues.
However, biodiversity is not the only thing separating Israel from much larger countries throughout the region and across the globe. This sliver of a country has more companies listed on NASDAQ than the entire continent of Europe. It also boasts the largest number of innovative engineers and the highest level of spending on research and development in the world. In turn, Israel has been applying this concentration of inventive, creative talent toward the solution of national and international problems.
Israel's isolation, especially in relation to its frequently hostile neighbors, has provided the country's numerous thinkers and researchers with a secluded platform for testing ideas while keeping intellectual property within its borders. Dubbed the "Silicon Wadi," Israel is second in global influence only to its Californian counterpart. Digital giants such as Motorola, Intel, Microsoft, IBM, Google, Hewlett-Packard and Apple – which is opening its third R&D center in Israel's Central District – have close to 20,000 employees combined in strategic technology development centers throughout the area.
But advanced high-tech inventiveness is not limited to the bustling beach towns and metropolitan areas on Israel's coastal plain. The Negev, Israel's vast southern desert which makes up 60% of the country, is home to the majority of the county's solar-energy industry. Recent innovations include to creating hydrogen-based fuels by using the sun's energy to split molecules of water. Scientists also concentrate on putting common materials such as rust to work rather than exotic elements like rare earth.
It is no secret that, on the energy front, Israel is heavily reliant on foreign oil, with its gas prices ranking third highest in the world at an average price of 9 USD per gallon. For years, Israel preached the need for energy independence and – in what may be its biggest advancement – this pipe-dream may actually become a reality. In mid-2010, press releases shocked the world with reports that a large concentration of natural gas worth almost a quarter trillion dollars was found in the Mediterranean's Levant basin off the port of Haifa. Even as Israel pursues alternative energy sources, this find could prove to be an economic game-changer. Parties such as the EU, U.S., Lebanon, and Cyprus are looking to purchase from Israel's energy reserves, which some say may be able to supply the country's own demands for close to 150 years.
Israel does well with scarce or precious resources like water. Thanks to the Israeli water engineer who serendipitously ascertained the now world-famous drip irrigation tubing technology, farmers and agriculturists have successfully been able to grow 40% more produce on previously infertile Israeli land. This valuable technology has been taken as far as Australia and is being used in poverty-stricken areas throughout the continent of Africa. Triggered by Israel's need to re-use its own precious water, another technology helping the world at large includes desalinization expert Professor Yoram Oren's nano-filtration technology, currently being employed to remove toxic effluents from a heavily polluted river in India. Israeli water purification developments have impacted countries as diverse as Turkey and China. The LifeStraw, a brainchild of Israeli and Dutch innovation, is a simple handheld, low-cost water purification tool for direct drinking that can filter out waterborne bacteria. The straw has been slurped up in over 100 countries and territories including Kenya, Nigeria, Pakistan, Afghanistan, UAE and Ghana.
Ironically, Israel – ranked by Bloomberg as the 6th healthiest country on the planet – also leads the world in patents for medical equipment. Teva Pharmaceutical Industries, Ltd., Israel's drug-making giant, is the world’s largest producer of generic drugs and the U.S.'s number one supplier. In the forefront of cancer research, Israeli medical researchers developed techniques, called cryoablation, for freezing and ultimately destroying tumors found in breast cancer patients. The minimally invasive cryoablation process has already been tested in Japan and the United States, and there are plans for the revolutionary treatment's widespread use.
Where does this impetus for this innovation come from? "I think it's from having to struggle to survive – against enemies and within a context of shortage of resources," said Dr. David M. Brock, Associate Professor at the Guilford Glazer Faculty of Business and Management in Ben-Gurion University of the Negev. "As they say, 'necessity is the mother of invention'." Israel, with frequent water shortages, for instance, needed to find unconventional ways to store, clean and utilize questionable water, simply because of the scarcity of the resource.
Brock is another example of someone with expertise who was charmed by Israel. Brock, a Canadian who had lived in multiple countries including New Zealand and the United States, experienced an easy adaptability to Israel that greatly contrasted with Furth's experience. "The difference is that in Israel you feel special and welcome, with a range of institutions to help you adapt," said Brock.
When asked about how Israel was affected by the 2008-9 global market crash, Brock gave a positive report. "Israel's economy fared remarkably well, partly because the economy itself remained strong and also because Israel's institutional and regulatory systems are very advanced," he told “The Suit.” These regulatory systems – which include the implementation of a trading curb, automatic rejection of a trade price deviating more than 35% from its previous listing, and a 45-minute trade halt on company securities after publishing price-sensitive information – gives time for quotes to be disseminated, ensuring fair and orderly trading disciplines within the Tel Aviv Stock Exchange. Other policies, such as the government's lack of sympathy for assisting banks during a crisis by using public money, helps limit risky behavior in the banking industry and helps control the financial bureaucracy. In 2008-9, while much of the rest of the region was holding their collective breaths, the Tel Aviv 25 index climbed 75% and Israel enjoyed the third highest percentage of real GDP growth.
But it's not all peaches and cream. Like so many other developed countries, Israel suffers from a disproportionate concentration of wealth among its population. During recent elections, many complained that re-elected Prime Minister Benjamin Netanyahu's policies were "only good for the rich." Others complained of a growing number of homeless, agrarian and deeply religious citizens who exhibit lower levels of workforce participation and yet are predicted to have increasingly unfair levels of dependency on state-subsidized social services. With numbers just below that of the U.S., Israel's unemployment rate is nothing to write home about. Many soldiers recently discharged from Israel's mandatory military service, experience trouble finding work in Israel's cutthroat job market.
The year 2011 began with the emergence of the Arab Spring and a revolutionary wave that swept into the Middle East. Regional unrest, with the prospect of angry protesters and violent rebels charging through the streets and across the borders of countries surrounding Israel raised many diplomatic eye-brows and snapped the Israel Defense Forces to attention. But Israel wasn't immune to the rest of the Middle East's exasperation either. In mid-2011, hundreds of thousands of Israeli activists took to the streets in a protest sparked by frustration and fury. Fed up with the high cost of living, disappearance of the middle class and other pressing socio-economic issues, demonstrators voiced their criticism and in many regards, they prevailed. Shortly thereafter, Prime Minister Netanyahu formed the Trajtenberg Committee and, according to the Bank of Israel, almost two thirds of the committee's resolutions have been adopted by the government.
Perfection? Far from it. But for many, the social protests were also symbolic protests. After decades of fighting for their existence, Israel has turned into a real country with real problems to confront. No longer merely surviving – Israel is thriving.
Past the almond groves, vineyards and plentiful olive trees surrounding the country's capital in Jerusalem, an eclectic mix of business professionals, fashionistas, students and counterculturists sit in a noisy cafe by the bay in Tel Aviv. A representative mix of their country's entrepreneurs and innovators, these ambitious Israelis brainstorm and exercise their unique combination of creativity and cheeky chutzpah. Buoyed by their country's reputation and strengthened by shared adversity, Israel's energy and enthusiasm has become a shining light for other nations and one that is only getting brighter.
