(And What It Means For SC)

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November 29, 1947 UN General Assembly votes to adopt the UN Partition Plan
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The first known “Kingdom of Israel” in this location was in the 11 th century BCE),
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The majority of the world continues to question Israel’s right to exist
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Israel has a PR problem!

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Entrepreneurship is the backbone of the country
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No known natural resources
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Necessity is the mother of… INNOVATION
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Agricultural innovation
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Military innovation
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Infrastructural innovation

It’s time for your daily dose of Israeli technology….
** Slide as produced by Jonathan Medved

** Slide as produced by Jonathan Medved

** Slide as produced by Jonathan Medved

** Slide as produced by Jonathan Medved

** Slide as produced by Jonathan Medved

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Compulsory Military Service
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Global Orientation
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Progressive Immigration Policies
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Pro-active Government Policy
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Persistence
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Diaspora Community
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Mash-Ups

Highly trained and educated workforce
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What is important about military service?
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18 year olds spend at least 2-3 years serving
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Development of critical leadership skills
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Responsibility and accountability for the well being of others
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Taught to question authority for improved outcomes
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Willingness to take risks in the face of adversity
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Persistence and desire to learn from mistakes
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Development of military technology often converted to civilian uses

Highly trained and educated workforce
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Very high-quality education infrastructure
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Highest ratio of university degrees to population in the world
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Bill Gates:
The quality of education is one of the key factors that has made Israel so unique in the great companies and partners we've had...
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Warren Buffet:
If you go to the Middle-East looking for oil, you do not need to stop in
Israel. But, if you are looking for brains, for energy and for integrity, the only stop you need is in Israel.

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Progressive policy encourages immigration
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Israel is built on successful integration of cultures
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Mass immigration from former Soviet Union
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Absorbed 5+% population increase in one year
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58% were scientists, academic scholars, associate professionals and technicians ( >2x the percentage of workers in these fields)

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“Yozma” (initiative) 1993 VC policy
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Offered attractive tax incentives for foreign venture capital investments
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Promise of government to DOUBLE any investment with government funds
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VC investment rose nearly 60-fold, from $58 million to $3.3 billion (‘90-’00)
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VC-launched businesses went from 100 to 800
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Establishment of incubator system to leverage approximately
750,000 scientists, engineers, and physicians arriving from former
Soviet Union (24 incubators today)

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Government privatized the incubators
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Policy of supporting R&D
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Office of the Chief Scientist tasked with encouraging high value-added
R&D and collaboration nationally and internationally
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This year’s budget for R&D support:
NIS 1.42 billion -- approximately $375 Million

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Hi-tech center and culture of entrepreneurship
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Hundreds of multi-national companies in Israel
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Microsoft, Intel, Motorola, IBM, Google, Yahoo, etc.
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Leading VC firms operate in Israel
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Sequoia, Lightspeed, Bessemer, NVP, Battery, etc.
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Overall VC investment over $2 billion per year
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Number 1 over all of continental Europe
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Number 1 in the world on a per capita basis
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In absolute terms, 2 nd overall only to Silicon Valley

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Relative to the population, largest number of startup companies in the world
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In absolute terms, largest number second only to US
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Outside the US, largest number of NASDAQ-listed companies

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Israel: Highest R&D spending as % GDP and per capita

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South Carolina vs. Israel
South Carolina Israel
Geographic Size 32,020 sq. mi. 8,019 sq. mi.
Population 4.7 million 7.8 million
GDP $166 Billion $245 Billion
VC Investments $73 Million $2,139 Million
Compared
400%
60%
67%
3%

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Back-to-back record years:
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2010: $4.1 billion in Capital Investment and creation of over
20,000 new jobs
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2011: $5.1 billion in Capital Investment and creation of over
20,000 new jobs
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Since 2006: Over $22 billion in Capital Investment and creation of over 107,000 new jobs
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Foreign Direct Investment
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Over 72% of capital investment and 46% of jobs in 2011

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International leader in attracting Foreign Direct Investment
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Strategic location
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Good infrastructure: Roadways, Rail, and Port
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Need ongoing spending to maintain and compete
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Higher Education and Research Environment
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SmartState™ ~ 120 endowed chairs (critical need)
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Over $550 Million in research funding at our 3 major research universities
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Technical College System
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ReadySC™ workforce training program
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Apprenticeship Carolina™

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Department of Commerce Incentives – (deal dependent)
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Based on capital investment, number of jobs and wage scale etc.
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Counties can play major role in incentive package
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SCRA / SC Launch™
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Project Development Funding Grants, Start-Up Assistance
Grants, SBIR Grants, and Loan and Equity-based Investments of up to $200,000
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Support for landing parties and demonstration projects
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SC Investors—VC, Angels, Corporate Investors
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Collaborative research grant support

We need to align around innovation!
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Identify new incentives to attract innovation capital
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Tax breaks for R&D and Venture Capital investment in our state
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Enact legislation like the proposed South Carolina Angel
Investment Act of 2011
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Increase direct government grant support, if possible
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Create, stimulate and support collaboration
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Example: SC-Israel Collaboration
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Stimulate business and research partnerships between companies and universities in South Carolina and Israel as a way to generate economic development, jobs, and
investments to the benefit of all.
● www.SC-Israel.org

We need to align around innovation!
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Champion educational excellence
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Nurture innovators
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Groom exceptional leaders
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Encourage entrepreneurs of tomorrow
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Attract and/or retain highly skilled and highly educated workforce

Role of our students and workforce
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Get educated! Get networked! Stay in SC!
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Young students must identify an opportunity and gain relevant education and experience
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Seek work-based opportunities to grow experience and network in the chosen field
* Consider study abroad and internship programs – particularly in Israel!
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Network, network, network!
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Ask your state leaders to support legislation encouraging venture capital investment and/or facilitating government-
sponsored startup funding – (key drivers of innovation)
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At the end of the day:
Stay in South Carolina – our state needs you!