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From Underdogs to TigersThe Rise and Growth of the Software Industry in Brazil, China, India, Ireland, and Israel$
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Ashish Arora and Alfonso Gambardella

Print publication date: 2005

Print ISBN-13: 9780199275601

Published to Oxford Scholarship Online: September 2007

DOI: 10.1093/acprof:oso/9780199275601.001.0001

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The Israeli Software Industry

The Israeli Software Industry

Chapter:
(p.72) 4 The Israeli Software Industry
Source:
From Underdogs to Tigers
Author(s):

Dan Breznitz

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199275601.003.0004

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.

Keywords:   software exports, Silicon Valley, R&D subsidies, venture capital, Israel, startups

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