Start-Up Nation - The Story of Israel's Economic Miracle Part 11

12. Ibid.

13. Interview with Orna Berry.

14. Yossi Sela, managing partner, Gemini Venture Funds, http://www.gemini.co.il/?p=TeamMember&CategoryID=161&MemberId=197.

15. Interview with Erel Margalit.

16. David McWilliams, "Ireland Inc. Gets Innovated," Sunday Business Post On-Line Sunday Business Post On-Line, December 21, 2008, http://www.sbpost.ie/post/pages/p/story.aspx-qqqt=DAVID+McWilliams-qqqs=commentanda.n.a.lysis-qqqid=38312-qqqx=1.asp; retrieved January 2009.

17. Interview with Tal Keinan, cofounder of KCPS, May and December 2008.

18. Interview with Ron Dermer, former economic attache, Emba.s.sy of Israel in United States, and senior adviser to Prime Minister Benjamin Netanyahu, September 2008.

19. Interview with Benjamin Netanyahu, prime minister of Israel, December 2008.

CHAPTER 11 11. Betrayal and Opportunity.

Epigraph: Quoted in Julie Ball, "Israel's Booming Hi-Tech Industry," BBC News BBC News, October 6, 2008, http://news.bbc.co.uk/2/hi/business/7654780.stm; retrieved January 2009.

1. John Kao, Innovation Nation Innovation Nation (New York: Free Press, 2007). (New York: Free Press, 2007).

2. Michael Bar-Zohar, Shimon Peres: The Biography Shimon Peres: The Biography (New York: Random House, 2007). p. 223. Also Reuters, "Peres Biography: Israel, France Had Secret Pact to Produce Nuclear Weapons," May 30, 2007. (New York: Random House, 2007). p. 223. Also Reuters, "Peres Biography: Israel, France Had Secret Pact to Produce Nuclear Weapons," May 30, 2007.

3. Michael M. Laskier, "Israel and Algeria amid French Colonialism and the Arab-Israeli Conflict, 19541978," Israel Studies Israel Studies, June 2, 2001, pp. 132, http://muse.jhu.edu/journals/israel_studies/v006/6.2laskier.html; retrieved September 2008.

4. De Gaulle quoted in Alexis Berg and Dominique Vidal, "De Gaulle's Lonely Predictions," Le Monde Diplomatique Le Monde Diplomatique, June 2007, http://monde diplo.com/2007/06/10degaulle; retrieved September, 2008.

5. Quoted in Berg and Vidal, "De Gaulle's Lonely Predictions."

6. "Israel's Fugitive Flotilla," Time Time, January 12, 1970, http://www.time.com/time/magazine/article/0,9171,942140,00.html.

7. Stewart Wilson, Combat Aircraft Since 1945 Combat Aircraft Since 1945 (Fyshwick, Australia: Aeros.p.a.ce Publications, 2000), p. 77. (Fyshwick, Australia: Aeros.p.a.ce Publications, 2000), p. 77.

8. Ruud Deurenberg, "Israel Aircraft Industries and Lavi," Jewish Virtual Library Jewish Virtual Library, January 26, 2009, http://www.jewishvirtuallibrary.org/jsource/Society_&_Culture/lavi.html.

9. James P. DeLoughry, "The United States and the Lavi," Airpower Journal Airpower Journal vol. 4, no. 3 (1990), pp. 3444, vol. 4, no. 3 (1990), pp. 3444, http://www.fas.org/man/dod-101/sys/ac/row/3fal90.htm.

10. Interview with Yossi Gross, director and cofounder of TransPharma Medical, and founder of many medical-device start-ups, December 2008.

CHAPTER 12 12. From Nose Cones to Geysers.

1. Interview with Doug Wood, head of creative affairs, Animation Lab, May 2008.

2. Interview with Yuval Dotan (fict.i.tious name), December 2008.

3. Manuel Trajtenberg and Gil Shiff, "Identification and Mobility of Israeli Patenting Inventors," Discussion Paper No. 5-2008, Pinchas Sapir Center for Development, Tel Aviv University, April 2008.

4. John Russell, "Compugen Transforms Its Business," Bio-ITWorld .com, October 17, 2005, http://www.bio-itworld.com/issues/2005/oct/bus-compugen?page:int=-1.

5. Interview with Ruti Alon, partner, Pitango Venture Capital, and chairperson, boards of BioControl, BrainsGate, and TransPharma Medical, December 2008.

CHAPTER 13. The Sheikh's Dilemma.

1. Interview with Michael Porter, professor of economics, Harvard Business School, March 2009.

2. Rhoula Khalaf, "Dubai's Ruler Has Big Ideas for His Little City-State," Financial Times Financial Times, May 3, 2007.

3. Michael Matley and Laura Dillon, "Dubai Strategy: Past, Present, Future," Harvard Business School, February 27, 2007, p. 3.

4. Quoted in a.s.saf Gilad, "Silicon Wadi: Who Will Internet Entrepreneurs Turn to in Crisis?" Cataclist Cataclist, September 19, 1998.

5. Saul Singer, "Superpower in Silicon Wadi," Jerusalem Post Jerusalem Post, June 19, 1998.

6. Quoted in Steve Lohr, "Like J. P. Morgan, Warren Buffett Braves a Crisis," New York Times New York Times, October 5, 2008.

7. Quoted in Eyal Marcus, "Israeli Start-ups Impress at TechCrunch50," Globes Online Globes Online, September 14, 2008.

8. James C. Collins and Jerry I. Porras, Built to Last: Successful Habits of Visionary Companies Built to Last: Successful Habits of Visionary Companies (New York: HarperCollins, 1997), pp. xix, 224. (New York: HarperCollins, 1997), pp. xix, 224.

9. Barbara W. Tuchman, Practicing History: Selected Essays Practicing History: Selected Essays (New York: Ballantine Books, 1982), quoted in Collins and Porras, Built to Last, p. xix. (New York: Ballantine Books, 1982), quoted in Collins and Porras, Built to Last, p. xix.

10. Interview with Riad al-Allawi, Jordanian entrepreneur, March 2009.

11. Fadi Ghandour, in Stefan Theil, "Teaching Entrepreneurship in the Arab World," Newsweek International Newsweek International, August 14, 2007; also available at http://www.gmfus.org/publications/article.cfm?id=332; retrieved March 2009.

12. Bernard Lewis, "Free at Last? The Arab World in the Twenty-first Century," Foreign Affairs Foreign Affairs, March/April 2009. Similar observation has been made by Samuel Huntington.

13. Quoted in Christopher M. Davidson, Dubai: The Vulnerability of Success Dubai: The Vulnerability of Success (New York: Columbia University Press, 2008), p. 166. (New York: Columbia University Press, 2008), p. 166.

14. UNDP (United Nations Development Programme), The Arab Human Development Report, 2005: Towards the Rise of Women in the Arab World The Arab Human Development Report, 2005: Towards the Rise of Women in the Arab World (New York: United Nations Publications, 2006). (New York: United Nations Publications, 2006).

15. Interview with Christopher M. Davidson, author of Dubai: The Vulnerability of Success Dubai: The Vulnerability of Success, March 2009.

16. Quoted in Fannie F. Andrews, The Holy Land Under Mandate The Holy Land Under Mandate, vol. 2 (Boston: Houghton and Mifflin, 1931), p. 4.

17. Hagit Messer-Yaron, Capitalism and the Ivory Tower Capitalism and the Ivory Tower (Tel Aviv: Ministry of Defence Publishing, 2008), p. 82. (Tel Aviv: Ministry of Defence Publishing, 2008), p. 82.

18. America-Israel Friendship League, "Facts About Israel and the U.S.," http://www.aifl.org/html/web/resource_facts.html.

19. McKinsey & Company, "Perspective on the Middle East, North Africa and South Asia (MENASA) region," July 2008. All of the data in this section comes from this study.

20. David Landes, The Wealth and Poverty of Nations The Wealth and Poverty of Nations (New York: Norton, 1999), pp. 41213. (New York: Norton, 1999), pp. 41213.

CHAPTER 14. Threats to the Economic Miracle.

1. Quoted in Joanna Chen, "The Chosen Stocks Rally," Newsweek Newsweek, March 14, 2009, http://www.newsweek.com/id/189283.

2. Amiram Cohen, "Kibbutz Industries Also Adopt Four-Day Workweek," Haaretz Haaretz, March 12, 2009, http://www.haaretz.com/hasen/spages/1070086.html.

3. Interview with Benjamin Netanyahu, prime minister of Israel, December 2008.

4. Jennifer Evans, "Best Places to Work for Postdocs 2009," The Scientist.com, The Scientist.com, vol. 23, no. 3, p. 47, vol. 23, no. 3, p. 47, http://www.the-scientist.com/bptw.

5. Interview with Dan Ben-David, Department of Economics, Tel Aviv University, June 2008.

6. Israel's overall workforce partic.i.p.ation level is 55 percent among adults, among the lowest in the West. The overall average is pulled down mainly by the extremely low workforce-partic.i.p.ation levels of two minority groups: ultra-Orthodox Jews (40 percent partic.i.p.ation) and Arab women (19 percent partic.i.p.ation). These figures are cited in the Israel 2028 Israel 2028 report, which recommends working to raise workforce partic.i.p.ation rates of ultra-Orthodox Jews and Arab women to 55 percent and 50 percent, respectively, by 2028. U.S.-Israel Science and Technology Foundation, report, which recommends working to raise workforce partic.i.p.ation rates of ultra-Orthodox Jews and Arab women to 55 percent and 50 percent, respectively, by 2028. U.S.-Israel Science and Technology Foundation, Israel 2028: Vision and Strategy for Economy and Society in a Global World Israel 2028: Vision and Strategy for Economy and Society in a Global World, edited by David Brodet (n.p.: U.S.-Israel Science and Technology Foundation, March 2008).

7. Dan Ben-David, "The Moment of Truth," Haaretz Haaretz, February 6, 2007. Also reprinted with graphs on Dan Ben-David's Web site: http://tau.ac.il/~danib/articles/MomentOfTruthEng.htm.

8. Helmi Kittani and Hanoch Marmari, "The Gla.s.s Wall," Center for Jewish-Arab Economic Development, June 15, 2006, http://www.cjaed.org.il/Index.asp?ArticleID=269&CategoryID=147&Page=1.

9. Quoted in Yoav Stern, "Study: Israeli Arab Att.i.tudes Toward Women Undergoing Change," Haaretz Haaretz, March 14, 2009, http://www.haaretz .com/hasen/spages/1008797.html.

10. U.S.-Israel Science and Technology Foundation, Israel 2028 Israel 2028, p. 39.

11. Reut Inst.i.tute, "Last Chance to Become an Economic Superpower," March 5, 2009, http://reut-inst.i.tute.org/en/Publication .aspx?PublicationId=3573.

12. Thomas Friedman speech at Reut Inst.i.tute conference, Tel Aviv, June 2008.

Conclusion: Farmers of High Tech.

1. Organisation for Economic Co-operation and Development (OECD) and European Patent Office, "Compendium of Patent Statistics," 2008, http://www.oecd.org/dataoecd/5/19/37569377.pdf.

2. Interview with Antti Vilpponen, founder, ArcticStartup, January 2009.

3. Craig L. Pearce, "Follow the Leaders," Wall Street Journal/MIT Sloan Management Review Wall Street Journal/MIT Sloan Management Review, July 7, 2008, http://sloanreview.mit.edu/business-insight/articles/2008/3/5034/follow-the-leaders/.

4. Quoted in Gallup, "Gallup Reveals the Formula for Innovation," Gallup Management Journal, May 10, 2007, http://gmj.gallup.com/content/27514/Gallup-Reveals-the-Formula-for-%20Innovation.aspx.

5. Dov Frohman and Robert Howard, Leadership the Hard Way: Why Leadership Can't be Taught-and How You Can Learn It Anyway Leadership the Hard Way: Why Leadership Can't be Taught-and How You Can Learn It Anyway (San Francisco: Jossey-Ba.s.s, 2008), p. 7. (San Francisco: Jossey-Ba.s.s, 2008), p. 7.

6. Quoted in Ronald Bailey, "Post-Scarcity Prophet: Economist Paul Romer on Growth, Technological Change, and an Unlimited Human Future," Reason Online, Reason Online, December 2001, December 2001, http://www.reason.com/news/show/28243.html.

7. Ronald Bailey, "Post-Scarcity Prophet"; and Paul Romer, "Economic Growth," both in The Concise Encyclopedia of Economics The Concise Encyclopedia of Economics, edited by David R. Henderson (Indianapolis: Liberty Fund, 2007), http://www.stanford.edu/~promer/EconomicGrowth.pdf.

ABOUT THE AUTHORS.

Dan Senor, adjunct senior fellow for Middle East studies at the Council on Foreign Relations, has been involved in policy, politics, and business in the Middle East. As a senior foreign policy adviser to the U.S. government, he was one of the longest-serving civilian officials in Iraq, for which he was awarded the highest civilian honor by the Pentagon. He also served as a Pentagon adviser to Central Command in Qatar and as a foreign policy and communications adviser in the U.S. Senate. He has studied in Israel and at Harvard Business School and has traveled extensively throughout the Arab world. In his business career, he has invested in a number of Israeli and American start-ups, and today is with a New Yorkbased global investment fund. Senor's a.n.a.lytical pieces are frequently published by the adjunct senior fellow for Middle East studies at the Council on Foreign Relations, has been involved in policy, politics, and business in the Middle East. As a senior foreign policy adviser to the U.S. government, he was one of the longest-serving civilian officials in Iraq, for which he was awarded the highest civilian honor by the Pentagon. He also served as a Pentagon adviser to Central Command in Qatar and as a foreign policy and communications adviser in the U.S. Senate. He has studied in Israel and at Harvard Business School and has traveled extensively throughout the Arab world. In his business career, he has invested in a number of Israeli and American start-ups, and today is with a New Yorkbased global investment fund. Senor's a.n.a.lytical pieces are frequently published by the Wall Street Journal Wall Street Journal; he has also written for the New York Times New York Times, the Washington Post Washington Post, the Weekly Standard Weekly Standard, and Time Time. Mr. Senor lives in New York City with his wife and two sons.

Saul Singer is a columnist and former editorial page editor at the is a columnist and former editorial page editor at the Jerusalem Post Jerusalem Post. Historian Michael Oren called his book Confronting Jihad: Israel's Struggle and the World After 9/11 Confronting Jihad: Israel's Struggle and the World After 9/11 "mandatory reading for anyone, layman or expert, interested in the Middle East." He has written for the "mandatory reading for anyone, layman or expert, interested in the Middle East." He has written for the Wall Street Journal, Commentary, Moment, the New Leader, bitterlemons Wall Street Journal, Commentary, Moment, the New Leader, bitterlemons (an Israeli/Palestinian e-zine), and the (an Israeli/Palestinian e-zine), and the Washington Post's Washington Post's international blog, international blog, PostGlobal PostGlobal. Before moving to Israel in 1994, he served as an adviser in the United States Congress to the House Foreign Affairs and Senate Banking Committees. Mr. Singer lives in Jerusalem with his wife and three daughters.

You can visit the authors' website at www.startupnationbook.com.

ABOUT TWELVE.

MISSION S STATEMENTTWELVE was established in August 2005 with the objective of publishing no more than one book per month. We strive to publish the singular book, by authors who have a unique perspective and compelling authority. Works that explain our culture; that illuminate, inspire, provoke, and entertain. We seek to establish communities of conversation surrounding our books. Talented authors deserve attention not only from publishers but from readers as well. To sell the book is only the beginning of our mission. To build avid audiences of readers who are enriched by these works-that is our ultimate purpose.

For more information about forthcoming TWELVE books, you can visit us at www.twelvebooks.com.