ICT- Information and Communication Technology
Israel: IT Geographics |
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This section discusses concentrations of IT activities including technology incubators and technology parks. Israel is considered world's second (called Silicon Wadi) most important high-tech cluster after Silicon Valley in USA. Private high-tech businesses are focused in five very small clusters: Har Hotzfim and Malkah Technology Park in Jerusalem, the Rechovot/Rishon LeZion area (which includes the famous Weizmann Institute), Haifa Technology Park, Herztiliyah Pituach area. In the late 1970’s Israeli firms began t o look to US firms for funds to begin new ventures in high technology businesses. This led to a new wave of venture capital flows beginning in the late 1980’s. The venture capital industry provided enormous financial support for the Information Technology environment.
Technology Incubators
Technological incubators are support corporations that give fledgling entrepreneurs an opportunity to develop their innovative technological ideas and set up new businesses in order to commercialize them. The incubator program is governed by the Office of the Chief Scientist of the Ministry of Industry and Trade. The program supports novice entrepreneurs at the earliest stage of technological entrepreneurship and helps them implement their ideas by turning them into exportable commercial products and forming productive business ventures in Israel. Through the technological incubators, the government provides entrepreneurs with physical premises, financial resources, tools, professional guidance, and administrative assistance—so that, during their stay in the incubator, they may turn their abstract ideas into products of proven feasibility, novelty, advantages, and necessity in the international marketplace. The entrepreneurs' term of activity in the technological incubator considerably enhances their prospects of raising the financial investment they need, finding strategic partners, and eventually reach IPO. Sample list of incubator programs [37]:
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There are many similarities between the two IT clusters. They both produce a large number of IT startup firms annually. They also both attracted a large amount of venture capital and other investments funds from around the world from private investors, government and multi-national corporations alike.© Copyright 2006 Anoop Samuel. All Rights Reserved.