The Israeli Software Industry
This chapter argues that the software industry in Israel evolved as a second IT industry following the successful development of the hardware sector. The main competitive advantage that enabled the development of the local software industry was Israel's R&D capabilities, which are diffused throughout the innovation system with their source being the strong academic research apparatus. The chapter also argues that it was the conscious aim of the Israeli state to develop exactly such an industry, and shows that at critical times the state, through the OCS, started catalytic programs to spurred private technological entrepreneurship.
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