Google Chairman, Eric Schmidt, is betting on Israel

1. Eric Schmidt, Executive Chairman and former CEO of Google: For a small country, Israel will have an oversized impact on the evolution of the next stage of the technology we all use…. We should expect much more investment in high technology in Israel, and many more startups as the next generation of the Internet unfolds…. Israel has become a high tech hub. Google has a large engineering and sales operation in Israel, whose achievements are definitely world-class…. Four things are clear about Israel as a high tech, innovation engine… its commitment to universities and science… its universal military service which is integral to this process… its technology which benefits greatly from the Internet… and its security situation may actually help as Israelis take more risks in business than other countries would…. (Haaretz, June 26, 2012).”

2. “Google Chairman Eric Schmidt says the company’s development centers in Israel are among Google’s most efficient offices in the world. Schmidt also noted that investments in Israeli start-ups are highly beneficial. Speaking at a Tel Aviv conference, Schmidt praised Israeli engineers, the country’s higher education system and the training acquired in the military. Schmidt said that the secret of innovation is trying new things. Schmidt hopes to expand his investments in Israel. ‘There are no disadvantages to investing in Israel – just advantages…. Israel has the most important high-tech center in the world after the US, he said (Israel 21C, June 19, 2012)’”

3. Chairman and outgoing CEO of Google, Eric Schmidt, is betting on Israeli companies. In the past year, his new tech-focused venture capital fund, Innovation Endeavors LLC, has invested in eight companies, four of which are Israeli. Schmidt believes in Israeli brainpower and technologies, some of which could have become leading Google products in another incarnation…. Innovation Endeavors LLC, which manages investments in start-ups out of the capital of former Google CEO Eric Schmidt, is expanding its Israeli operations. (Israel Strategist, June 20, 2011, Globes Business Daily, June 15, 2011 and May 16, 2011).

4. Eric Schmidt’s blog: “Google’s development centers in Israel are among the company’s most efficient…. Israel felt very peaceful, and very much like the Silicon Valley…. Google’s Israeli engineering and sales teams’ achievements are definitely world-class…. “The military service helps Israelis become more focused, better trained and more organized…. The country’s recent push in cyber intelligence will result in many new network security startups, in particular…. We should expect much more investment in high technology in Israel, and many more startups as the next generation of the Internet unfolds…. Many countries want to replicate the phenomenal success of Silicon Valley. Israel is one example of what it takes (Insider, Part of the Next Web Family, June 26, 2012).”

5. Eric Schmidt: “The decision to invest in Israel was one of the best that Google has ever made…. Israeli engineers are developing things, in Israel, that are being used all over the world…. Israeli high-tech workers are more mature, independent and organized in comparison to other workers…. Israel is a start-up nation (Israel Hayom, June 20, 2012).”

Straight from the Jerusalem Boardroom #248
https://bit.ly/3u29k9g

Foreign investment in Israel’s high-tech companies surged to new heights in the 1^st quarter of 2021 – $5.7bn in 172 deals – which is up 89% over the impressive 4^th quarter of 2020 and double the volume of the 1^st quarter of 2020.

2020 was the first year of surpassing $10bn in capital raised by the Israeli high-tech sector from investors in the US, Asia and Europe, who trust the maturity of Israel’s brain power. Investments in Israeli companies more than tripled in six years, reflecting the effective response by Israeli startups to the technological, medical, pharmaceutical, educational, social and digital challenges posed by Covid-19.

Israel’s economic performance in defiance of Covid-19 is presented by Dr. Adam Reuter, the Chairman and Founder of “Financial Immunities,” Israel’s largest financial-risk management firm, and the co-author of Israel – Island of Success:

Israel has led the globe in the rapid administration of Covid-19 vaccinations due to effective negotiations with Pfizer and an efficient, country-wide medical infrastructure.
Israel is the second lowest among OECD countries in the number of Covid-19 deaths per number of Covid-19 cases: 0.7% compared to the 2.3% OECD average. Israel features a young population (median age of 30 compared to the OECD’s 42) and an effective country-wide medical infrastructure, including top level HMOs and hospitals.
Israel is ranked 12^th from the bottom among the 37 OECD countries in the number of deaths per million inhabitants: 645 compared to 1,145 OECD average.
The International Monetary Fund’s 2025 GDP growth forecast for OECD countries: Israel – 4%, OECD average – 2.2%, US – 1.8%, Australia – 2.5%, Ireland – 2.6%, France and Canada – 1.7%, the UK – 1.6%, Germany – 1.2%, etc.
Israel’s 2020 GDP was reduced by 2.5%, compared to the OECD average reduction of 4.1%, South Korea – 1%, Norway – 0.8%, Australia – 2.6%, US – 3.5%, Japan – 4.8%, Germany – 5%, France – 8%, the UK – 10% reduction, etc. GDP growth was recorded in New Zealand – 2.4% and Ireland – 3.5%.
In 2020, Israel was ranked 20^th among the 37 members of the OECD in terms of GDP per capita, featuring $43,000 (GDP – $408bn), ahead of Japan, Italy and Spain, and very close behind the UK ($44,000) and France ($45,000).
Israel’s debt-to-GDP ratio increased from 60% in 2019 to 72% in 2020, compared to the OECD’s average increase from 66% to 82%. The 2020’s debt-to-GDP ratio was 266% in Japan, Italy – 161%, the US – 131%, Germany – 73%, etc.
Israel’s foreign exchange reserves-to-GDP ratio of 41% (3^rd among the OECD countries) attests to its financial stability, and Israel’s capability to raise foreign credit promptly in a cost-effective manner. Israel’s foreign exchange reserves in March 2021 – $186bn.
During the past decade, Standard and Poor (S&P) accorded Israel a positive credit rating trend, unlike the negative trend for the G-7 countries. In 2020, notwithstanding Covid-19, Israel’s credit rating (S&P) remained at AA.
Some 380 global high-tech giants operate in Israel, including Microsoft, Amazon, IBM, Intel, Cisco, Apple, Verizon, Applied Materials, Dell, HP, Kodak, Oracle, Philips, SAP, Medtronics, GM, eBay, GE, etc. Israel leads the world in the ratio of research and development investment to GDP: 4.9%. 85% of this investment comes from the business sector.

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