Start-up Nation: The Story of Israel's Economic Miracle |  | Authors: Dan Senor, Saul Singer Publisher: Twelve Category: Book
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Seller: treebeardbooks Rating: 83 reviews Sales Rank: 781
Media: Hardcover Edition: First Edition (stated) Pages: 320 Number Of Items: 1 Shipping Weight (lbs): 1.2 Dimensions (in): 9.1 x 6 x 1.2
ISBN: 044654146X Dewey Decimal Number: 330.95694 EAN: 9780446541466 ASIN: 044654146X
Publication Date: November 4, 2009 Availability: Usually ships in 1-2 business days
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Product Description START-UP NATION addresses the trillion dollar question: How is it that Israel-- a country of 7.1 million, only 60 years old, surrounded by enemies, in a constant state of war since its founding, with no natural resources-- produces more start-up companies than large, peaceful, and stable nations like Japan, China, India, Korea, Canada and the UK?
With the savvy of foreign policy insiders, Senor and Singer examine the lessons of the country's adversity-driven culture, which flattens hierarchy and elevates informality-- all backed up by government policies focused on innovation. In a world where economies as diverse as Ireland, Singapore and Dubai have tried to re-create the "Israel effect", there are entrepreneurial lessons well worth noting. As America reboots its own economy and can-do spirit, there's never been a better time to look at this remarkable and resilient nation for some impressive, surprising clues.
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Showing reviews 1-5 of 83
Israeli exceptionality in contributing to global technological progress October 25, 2009 Shalom Freedman (Jerusalem,Israel) 126 out of 141 found this review helpful
There is a growing literature which speaks of the distinctiveness of Israel and its unique contribution to global culture. I think most recently of George Gilder's outstanding 'The Israel Test'. No doubt one impulse for the creation of such books has been the worldwide campaign to delegitimize Israel, as prelude to physically destroying it. Thus the very pro- Israel books come in a way as contributions to the justification of the Jewish state, and as defense of it. What is of course distressing about this, and the need for paeans to Israeli exceptionality is the fact that Israel is the only country in the world which is required to 'justify' its existence in this way.
In any case this present book focuses on Israel's scientific and even more technological achievements. It speaks about the Israeli reaction to the Arab boycott, and the special situation of 'confinement' Israelis feel at not having normal access to neighboring countries. Israel is a very small country physically and thus many have a certain claustrophobic sense , especially those youngsters who have served in the Army. After the Army many young people adventurously use their new - found freedom.
Two forms of this are the trekking Israelis do throughout distant regions of the world, with special emphasis on South America, and the India- Nepal region, and the 'tech-ing' Israelis do in creating start-ups at a rate all out of proportion to their numbers in the world. Israelis have hooked into high- tech communications and rode on the wave of a world economy which is increasingly electronic.
The start- ups too come in part because of an encouraging government policy, which devotes a high proportion of funds to research. But they also come because Israelis are a people continually forced to find non- conventional answers to very difficult and unusual problems.
For any supporter of Israel, and I assume that this is the real audience of this book, this book will be a real pleasure. It will provide yet more evidence of how one small state manages to make real contributions to the global economy, and the scientific and technological progress of mankind.
Spectacular insights into building an entrepreneurial society November 27, 2009 Edward B. Roberts (Boston MA) 48 out of 52 found this review helpful
As a serial entrepreneur, VC and angel investor, and teacher of entrepreneurship for many years, I am enthralled by "Startup Nation". It is a fascinating story of how Israel has succeeded disproportionately to its size and certainly to its geographic situation. It teaches valuable and unique lessons about region building and industry building. The principles of the country that stimulate individual entrepreneurial behavior in the military, in agriculture, and especially in high technology are lessons for all. I have shared the book with several leaders of industry and finance who have seen it as a remarkably interesting read.
Congratulations to the authors.
Edward Roberts
Professor of Management of Technology, MIT Sloan School of Management
Founder and Chair, MIT Entrepreneurship Center
An enjoyable read November 8, 2009 Coach K (NY,NY) 50 out of 55 found this review helpful
This is an enjoyable read that highlights how Israel has come to become such a leader in high tech startups. It is quick, light reading that explores the historical and cultural aspects that lead so many Israelis to pursue entrepreneurship.
In Israel, it seems, there is a culture that embraces the questioning of authority, a flat hierarchical structure across society, and risk seeking behavior. For those who have traveled to Israel, these notions will not be unfamiliar to you. Furthermore, the book explores how the contacts made during mandatory army service serve as valuable social networking tools later on.
The book was exactly was I was hoping for. It is written for the layperson, and did not read like an academic journal. While most books about Israel focus on its conflict with the Palestinians, this book only brought up politics and conflict as it pertained to the subject at hand, and didn't editorialize in the process. Furthermore, the multitude of stories and vignettes made it a engaging read that held my interest for the time I sat reading it.
Where did all of Israel's innovation and entrepreneurship come from? November 22, 2009 Norman Goldman (Montreal) 23 out of 26 found this review helpful
In 2001, what started as a long discussion between Dan Senor, adjunct senior fellow for Middle East studies at the Council on Foreign Relations and Saul Singer, a columnist and former editorial editor at the Jerusalem Post, morphed into an excellent book, Start-Up Nation: The Story of Israel's Economic Miracle.
Senor had led a group of twenty-eight Harvard Business School classmates to Israel to explore Israel's economy, politics, and history. It was a time when there was considerable business opportunity in Israel but also, it was when the peace process collapsed and there was escalating insecurity. At the end of one week, many of the participants were asking, where did all of Israel's innovation and entrepreneurship come from? Senor and Singer didn't have an answer and furthermore when they tried to find some book explaining what made Israel's start-up scene so vibrant and seemingly impervious to the security situation, they came up empty-handed. Thus, they decided to write their own book that would try to answer what makes Israel so innovative and entrepreneurial?
Part of the answer to this amazing phenomenon, and as pointed out and exemplified in the book, is Israel's tight proximity of great institutions of higher learning, large companies, start-ups, and the ecosystem that connects them. The latter includes everything from suppliers, a fantastic pool of well-qualified engineers, and venture capital. In addition, and one very important element, is the important role of the military in molding future business leaders and innovators. It is the IDF that fosters a culture of chutzpah and critical, independent thinking that distinguishes the Israeli entrepreneur from their competitors. It is also the IDF's R&D funds that is pumped into the most sophisticated military hardware and software that eventually finds its way into the civilian economy, both in technologies and human resources.
Other factors include Israel's isolation or as one of its business leaders, Shai Agassi stated, by isolating Israel, its adversaries had actually created the perfect laboratory to test ideas. And when you look at the patents registered by Israel from 1980 to 2000 which numbered 7, 652 as compared to the combined total of 367 from Saudi Arabia, Egypt, Kuwait, United Arab Emirates, Syria and Jordan, you can't help being impressed. It is little wonder that technology companies and global investors such as Google, Cisco, Microsoft, Intel, eBay have entered the Israeli market discovering unique combinations of audacity, creativity and drive. As the authors mention, Israel has the highest density of start-ups in the world, "a total of 3,850 start-up, one for every 1,844 Israelis." In addition, more Israeli companies are listed on the NASDAQ exchange than all companies from the entire European continent.
However, as Senor and Singer argue, all of the above does not fully explain Israel's success. What Israel also has is "a cultural core built on a rich stew of aggressiveness and team orientation, on isolation and connectedness, and on being small and aiming big." This is something that is lacking with some of its competitors as Singapore or Korea.
Quite interesting is that the original Israeli settlers were pioneers creating a country from nothing, whose milieu was socialist and profit was a dirty word. Today's Israeli entrepreneur is likewise a pioneer and their new narrative is about creating things for the world in a variety of fields-"You're not just trading in goods, or you're not just a finance person. You are doing something for humanity. You are inventing a new drug or chip."
Apart from Israel's successes, the authors also explore why American innovation industries have not taken full advantage of the entrepreneurial talent of the U.S. military training and experience, why the Arab world is having difficulty in fostering entrepreneurship, and what are the challenges that Israel faces in maintaining its brilliant economic miracle.
Very often books of this nature digress into pages crammed with all kinds of graphs and statistics that, to put it bluntly, are just plain boring. However, Senor and Singer avoid this with an entertaining prose style, bolstered by meticulous research and many first hand interviews with people in the know.
Norm Goldman, Publisher & Editor Bookpleasures
Beyond Clusters January 13, 2010 Ari Applbaum (Israel) 8 out of 8 found this review helpful
Beyond Clusters: Review of Dan Senor & Saul Singer, Start-Up Nation: The Story of Israel's Economic Miracle (Twelve, 2009).
Ari Applbaum
December 2009
I wrote my first business plan in high school. The two-page plan (perhaps an overstatement) was promptly filed and forgotten instead of pitched to investors. The concept of offering free internet access to attract an audience for highly targeted advertising was later "stolen" by California-based NetZero, a company once valued at three billion dollars. This type of Chutzpa, a teenager's audacity to think he could reinvent the way people connect to the Internet, is not uncommon in Israel.
But why? Why does Israel produce "more start-up companies than large, peaceful and stable nations like Japan, China, India, Korea, Canada and the United Kingdom?" Why is it that "after the United States, Israel has more companies listed on the NASDAQ than any other country in the world?" These are the questions Dan Senor and Saul Singer set out to answer in their short and intriguing book.
Senor and Singer begin by asserting that the answer "it's simple - Jews are smart, so it's no surprise that Israel is innovative" will not suffice as it "obscures more than it reveals". Instead they offer a thesis based on the Cluster Theory of Harvard Business School professor Michael Porter. Porter's clusters are "geographic concentrations of interconnected companies, specialized suppliers, service providers, and associated institutions in a particular field,(1)" in Israel's case, high-tech. The closeness and interconnectedness of such institutions help foster innovation and economic growth. The authors demonstrate throughout the book how Israel serves as a cluster, if not The Cluster, of high-tech. The three main players that form this cluster, in addition to the business sector, are the Israeli government, universities, and military.
The government encourages immigration and investment in research and development. The investment is both ample (per capita, Israel spends more than any other country on civilian R&D) and smart. The authors cite for example a 16-year old, government-funding program which incentivized investors and effectively gave birth to the country's startup boom in the 1990s.
Israeli universities are world-class scientific research centers which create scientists who naturally find a home in the business sector. In 1959, with the creation of Yeda - the Weizmann Institute of Science's technology transfer company - Israeli academic institutions pioneered the practice of commercializing academic discoveries. This is a particular strength of Israeli universities today.
The unique element in the cluster might be the military. Senor and Singer explore the IDF's significant role in producing innovation. Elite intelligence and technology units train many of the next generation's entrepreneurs. Combat units empower Israelis to make split-second decisions and both assume awesome responsibilities and challenge -rather than blindly obey - their superiors. Compulsory military service is where future business relationships are made and reserve duty is where they are maintained. CEOs don't turn up their noses but seek out veterans and value their experience. The authors survey the birth of Israel Aerospace Industries (IAI) as a case study highlighting the security industry's role as a growth engine for other industries, and how security technologies often migrate into the high-tech industry.
This cross-pollination between government, academia, military and the business sector greatly contributes to Israeli innovation. But the heart and soul of the cluster is Israeli society. The interconnectedness between these institutions works primarily because of Israel's small size and close-knit society. Israeli startup veteran Yossi Vardi's statement that "everybody knows everybody" in Israel is a cliché but not without some truth. But there's more to it than size.
"The greatest contribution of the Jewish people in history is dissatisfaction," Shimon Peres tells the authors. "That's poor for politics but good for science." Peres notes that when a new shipment of the latest technologies arrives from the U.S, within five minutes Israelis are taking it apart and trying to improve. This is true throughout Israeli society. Israelis are constantly inventing and reinventing, thinking and rethinking, trying to improve themselves and everything around them. Additionally, Israelis are not afraid to fail, and most possess the right balance of personal ambition and an individualistic drive with a spirit of collaboration and sense of community. These are all critical success factors for a healthy startup culture.
Try as they may to steer clear from the "Jews are smart" theory, Senor and Singer end up recognizing that the unique conditions of Israel as a Jewish State and Israelis' unique sense of purpose that results are the core of Israel's success as a startup nation. The personal and professional journeys of Israelis Shai Agassi and David Frohman are prime examples. Had Shai Agassi stayed in California, he would have likely been appointed the next CEO of SAP, one of the most lucrative and sought-after jobs in Information Technology. But Agassi, whose story is told in great detail in the book's introduction, decided to help free Israel and the world from oil dependency. An ardent Zionist, he launched Project Better Place, the most ambitious electric vehicle project in history, and chose Israel for his pilot site.
David Frohman helped build Intel from the ground up in California. The obvious career choice for him was to stay put and benefit from Intel's growth and success, yet Frohman returned in 1974 to the Jewish State to realize the then improbable vision of turning Israel into a world leader in chip design. During the 1991 Gulf War, with missiles falling on Israeli population centers, Intel instructed Frohman to "do whatever you must do." Why did Frohman keep Intel's plants open? And why would Intel employees choose to continue showing up to work, as the authors note, "the more brazen the attacks, the larger the turnout?" Senor and Singer answer in a single word - davka, a unique Hebrew word loosely translated as to spite'. Israelis possess a sense of purpose that drives them to thrive davka in the face of security threats and adversity.
After 242 pages of an easy and enjoyable read, one realizes that the answer to the authors' question was hiding in the book's title all along. Israel does not just produce startups, it is a startup. Israel is a young, entrepreneurially spirited, small yet fast-growing, fast-paced, nimble, impatient, risk-taking, anti-hierarchical, creative and - perhaps most importantly - successful startup. If Zionism was a daring two-page business plan (with Herzl as a starry-eyed entrepreneur knocking relentlessly on doors of European venture capitalists), then Israel is its equally unimaginable successful outcome. Today, "The new pioneering Zionist narrative is about creating things," entrepreneur Erel Margalit tells the authors. Startups are not grown in a vacuum; they need the right breeding grounds, an incubator, if you will. And what better country to serve as a startup incubator than a country that is a startup? Therein lies the author's main revelation.
Senor, a former Deputy White House Press Secretary, and Singer, a Jerusalem Post writer, and are first and foremost excellent storytellers. What makes the book a must-read are the dozens of anecdotes and case studies. The authors' two comprehensive rolodexes translate into more than 100 top-quality interviews. They spoke with senior Israeli officials such as Prime Minister Benjamin Netanyahu and President Shimon Peres, met with chief executives at Google, Cisco and Intel, and interviewed military experts, Jewish historians, and some of the key figures in Israel's venture capital and high-tech scene, including Erel Margalit, Chemi Peres, Yossi Vardi, Jon Medved and many others. The outcome is fascinating. The authors' access to industry experts also brings to light lesser known tales, such as the account of a power struggle between Intel Haifa and Intel Santa Clara, which may be the highlight of the book. Senor and Singer unveil a 2003 drama, little known outside the semiconductor industry, in which Intel Haifa managed to save the company and perhaps the entire industry from an almost certain downfall by thinking out of the box and using Israeli chutzpa to relentlessly force senior executives into a paradigm shift.
It is not clear who the target audience is for this book. First and foremost, the authors hope it will become the ultimate playbook for CEOs, a compilation of lessons American executives can learn from Israelis about innovation. Senor and Singer quote HBS Professor Jon Kao, who says that the United States is "rapidly becoming the fat, complacent, Detroit of nations." The authors repeatedly state that America has much to learn from Israeli innovation but struggle to find exportable lessons and end up focusing mostly on what is unique to Israel. Consequently, their recommendations seem forced and not completely hashed out. They derive from the Israeli experience, for example, that mandatory service - either in the military or in some sort of national service - could help foster innovation. But what would this system look like? How would this affect the deeply-rooted capitalist ethos of American society? These questions remain unanswered. Perhaps the book is meant for business students. It is certainly not academic, but Senor's HBS background and investing involvement are apparent through the use of business jargon and academic theories. It is not implausible that a chapter would be used by professors in the field of business innovation, but more than that is unlikely. Most seriously, the authors touch upon but do not offer an adequate explanation of how to take startups to the next level and create larger, viable corporations that thrive over time. Israel may have the same problems.
The book clearly tries to appeal to Zionist audiences. The Jewish authors are unabashedly Zionist and are clearly ideologically motivated. Singer dedicates the book to his brother, an officer in the IDF who was killed in Lebanon. Senor dedicates the book to his father who helped start the Weizmann Institute's pioneering solar energy research program. While the authors need not completely distance themselves from the subject matter in such a book, at times it reads like a Ministry of Foreign Affairs or an "Invest in Israel Hasbarah" (Israel advocacy) book. Their juxtaposition of Israel with Gulf States is helpful in highlighting why growth without civil liberties, creativity, and an engaged population cannot build a cluster of high-tech innovation. But the authors seemed to have too much fun with the analogy, as if to say "look what Israel can do and its Arab neighbors cannot." As a Hasbarah piece, it is indeed the long-lost, mature, sophisticated and beefy cousin of the Israel21Cs and "Israel invented the Cell Phone" burgeoning positive messaging resources, but that's the problem: by definition it isn't a Hasbarah project.
The average business student might enjoy the book as light reading, but it is not likely to be assigned as an academic textbook. CEOs might read it to learn lessons from the stories told, but it falls short of becoming "a playbook for every CEO." There is too much technological jargon for non-techies and at the same time it is probably too journalistic for industry insiders. And for those interested in innovation outside the Jewish/pro-Israel community, the book's Zionist focus might be too hard hitting.
It is impossible to understand Israel as a startup nation without examining the many components that make it so. While there is something for everyone in the book - academic, businessperson, Zionist, technologist and story lover, it is the possibly rare reader who combines all of the above who would take greatest pleasure in the book. That may imply a narrow readership - although I can think of at least one now-post high school business plan writing Israel advocate who thinks it's a must read. There may also be seven million other potential readers, Israeli entrepreneurs who fuse many interests to form an entrepreneurial spirit. But if the authors are right in asserting that all those interested in innovation could stand to benefit from following Israel's entrepreneurial model, this book may be a good place to start.
i Harvard Business School - Institute for Strategy and Competitiveness Web Site - [...].
Showing reviews 1-5 of 83
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