General Economy

Israel | The Netherlands

General Economy: Israel

The Israeli economy is back on an upward spiral and is growing increasingly (grown 4.3 % in 2004, up from –0.7 in 2002). This is the result of successful government reforms, powerful economic initiatives, a highly innovative workforce and a decrease in terror attacks. Since mid-2003 there has been a free-market revolution. In two years the Israeli stock market has more than doubled and long term government bond rates have been nearly halved. Foreign Investment in the first quarter of 2005 was 4.7 billion, which exceeded the total in 2002.

Israel is on the forefront of technological innovation and is known as a hi-tech powerhouse. It is one of the most important technological centers in the world. Hi-tech industries account for almost 15% of GDP. Israel has the highest rate of Research and Development investment per GDP in the world. There is a continuous expansion of groundbreaking innovations. Israel’s combination of high technology and free –market reforms is a potential for future growth. Industrial experts are on the rise in Israel. High tech exports grew from $2 billion in 2002 to 10.5 billion in 2004. Israel spends a record a of 5% GDP on R&D and has more Nasdaq companies than any other country outside North America. Israel has more U.S. registered patents than China, India and Russia combined In Israel there are more than 23 incubators and more than 735 graduated projects in 10 years.

In proportion to its population, Israel has the largest number of startup companies in the world. In absolute terms, Israel has the largest number of startup companies than any other country in the world, except the U.S. (3,500 companies mostly in hi-tech). Israel is ranked #2 in the world for venture capital funds right behind the U. S. On a per capita basis, Israel has the largest number of biotech startups.

Israel has one of the most educated workforces in the world and entrepreneurial spirit. Israel produces more scientific papers per capita than any other nation by a large margin - 109 per 10,000 people --as well as one of the highest per capita rates of patents filed. It also has the highest ratio of university degrees to the population in the world. Twenty-four per cent of Israel's workforce holds university degrees, ranking third in the industrialized world, after the United States and the Netherlands and 12 per cent hold advanced degrees.

Where Israel Excells

Data security
Computer aided education
Internet Technologies
Medical Equipment
Safety & Security

Important companies that are already investing in Israel
Microsoft, Cisco, Motorola, Intel, Siemens, Philips, Medical, IBM

2001 2002 2003 2004 2005F
Inflation 1.4/ 6.5/ -1.9/ 1.2/ 1-3/
Unemployment 9.3/10.5/ 10.9/ 10.0/ 9.1
Imports 33.3/33.1/ 34.2/ 41.1/ 45.8
($ billion)
Exports 29.0/29.3/ 31.8/ 38.5/ 43.1
($ billion)
GDP 109.5/102.7/ 109.1/ 117.2/ 121
($ billions)
DGP/ Cap 17,180/15,468/16,312/17,200/ 17.7

Groundbreaking Innovations from Israel

The cell phone, Israelis working in the Israeli branch of Motorola

Windows NT and XP operating systems: Microsoft-Israel.

Pentium MMX Chip technology, Pentium-4 microprocessor and the Centrino processor: Intel Israel

Voice mail technology: Comverse

AOL Instant Messenger ICQ: four young Israelis.

Disk on key and disk on Chip Flash Memory: M-systems

Portable Cardiac Ultrasound system: GE Healthcare Israel.

CT Scanner: Philips Brilliance

IP telephony: VocalTec.

Zip Compression technology: Technion

Ingestible video camera: Given Imaging

Non-invasive way to destroy tumors: InSightec
Image Guided Treatment

Business Links

Israel News

  • The Israeli Government's Official Website
  • The Israeli Chamber of Commerce
  • Incubators
  • Business Consulting and Trade Representation in Israel...
  • Israel in figures
  • Information Technologies for Development
  • Ministry of Industry and Trade
  • The Israeli Economy at a Glance, 2005
  • The Manufacturing Association of Israel
  • Facts About the Israeli Economy
  • Israel Association of Software Houses
  • Matimop, The Israeli Center for R&D


    General Economy: The Netherlands

    According to an article in the Dutch newspaper de Volkskrant (14 August 2001) the Netherlands is the most suitable country for the establishment of a company.
    This was presented as the outcome of a recent survey by the British research institute Economist Intelligence Unit (EIU). The Netherlands take over from the United States, who have been ranked number one for the past years.
    One of the major contributing factors to the establishment of a company in the Netherlands are favorable tax regulations for foreign investors.
    Some other factors: the Netherlands have a stable political climate, well-planned infrastructure, e.g. telecommunications, and a well-preserved liberal interpretation of free-trade amongst nations.

    Cooperation between Israel and the Netherlands
    The cooperation between the two countries can take different forms. A basic agreement on distribution for example, creates an open European market for
    Israeli products. The Dutch then act as a portal for the introduction of the product into the huge European market. Another example is joint development of new products. Israel and the Netherlands become strategic partners in order to achieve maximum results.

    Dutch-Israeli investment
    Many of Israel's largest companies have based their European operations in the Netherlands, mainly due to favorable tax regulations as was mentioned above.
    Israel imports goods such as machinery, electronic equipment, medical equipment and telecommunications equipment. Other imported products are chemicals, agricultural goods and transport equipment.
    The Netherlands imports from Israel mainly consist of chemical products, machining high technology and agricultural goods.

    Business Links

    Netherlands News

    Netherlands Trade

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