Start-Up Nation

Start-Up Nation explains how a tiny, controversial, politically isolated country like Israel manages to be one of the world’s creative hubs with more startups, venture capital and new technology than entire continents.

Israel is in constant conflict with Palestine. In fact, this endless, religious war is what the country is most known for. And if it’s not in the news for that, it’s for something about its nuclear weapons.

But underneath the surface, Israel is probably the most innovative nation in the world.

No other country spends a bigger percentage of the money in its economy on research and development. At just 65 years old and with a population of only 8.5 million, Israel has more startups per capita than any other country: roughly one for every 2,000 Israelis (that’s over 4,000 startups in total).

Major companies love to buy Israeli startups, Cisco alone has bought nine of them so far. The country is also a major destination for venture capital, receiving twice as many investment dollars per person as even the United States – and 30 times as much as Europe or China. Lastly, over 60 Israeli companies are listed in the NASDAQ, which is more than all European companies combined.

How the hell is such a tiny country so creative and productive? For one, it lies in the nation’s culture.

When PayPal bought an Israeli company in 2008 to better deal with fraud among its payments, the Israelis openly criticized PayPal’s current practices during their first meeting with the CEO. This assertiveness, this strong confidence in standing up for your ideas, is called chutzpah in Hebrew, and it’s a typical value instilled in Israeli children.

A second factor that makes Israelis innovative is that asking questions comes second-nature to them. Most of them are religious, and throughout history, rabbis have constantly reinterpreted the meaning of the Bible – openly and in discussions. This culture of arguing and debating over what’s right has spilled over, which makes many Israelis great entrepreneurs.

Lastly, they despise hierarchical structures and formalities. For example, the Israeli army employs very few officers in senior ranks on purpose, to make sure the soldiers on lower levels take initiative and responsibility for their work.

If you want to be innovative yourself, try working on some of these traits!

Israel is a country rigged with political problems throughout all of history. Until recently, Israelis couldn’t even travel to neighboring countries. But this limitation was exactly the right one, forcing Israeli companies to think international and pursue ventures in technology, software and communication – the things that transcend all borders. Because Arab countries boycotted Israeli exports, they also couldn’t export any expensive goods, so they focused on smaller…