Israel: A Leader in Business Innovation



all right a new book looks at how Israel has managed to become a leader in business innovation joining us now is dancing you are he is co-author of startup nation the story of Israel's economic miracle a senior fellow for Middle Eastern Studies that at the Council on Foreign Relations Dan it's good to see you hey Joe could be with you good congratulations on the book and just give us how quickly I used to read cliff notes can you do a cliff notes on what's in the book sure yeah real quick what's fascinating to us Israel and the Middle East got a lot of coverage but one side of the story that gets very little coverage is that Israel is the fastest-growing one of the most dynamic entrepreneurial and innovation based economies on the planet that barely got hit by the global economic crisis in 2008 more Israeli companies on NASDAQ than all of Europe combined than all of India China Korea Japan combined more global venture capital each year of going into Israel on a per capita basis in the United States two and a half times more in the United States 30 times more than Europe even in 2008 when when the global economy was melting down and so this sparked our curiosity how these Raley's pulled it off in the least likely of places surrounded by enemies in a state of war since its founding no oil no access to regional capital or regional markets and what can we in the West learn from it at a time that we are trying to reboot our own innovation economy and get real productivity gains not credit bubble economic gains and and so we tried to look at the factors that have driven the Israelis and is there anything that driven their success and is there anything prescriptive for us yeah we know about I scar and Becky knows about I scar from this car yeah from pufferty that was one of the greatest managed companies and innovators he had he had ever seen Mattel is the biggest generic company damn but what did you find out what drives the innovation what's different what aren't what are we not doing here with so much more opportunity and security look we go through eight factors in the book let me just quickly focus on two or three of them one is our the Israel's immigration and assimilation policies these Raley's have very innovative policies and how they bend over backwards to bring people to their country from around the world Israeli Prime Minister's run for office talking about how many prints they're gonna get into the country they don't few immigration is a burden and they they have some very innovative policies for assimilating them civilian research and development they spend more as a percentage of their economy on R&D than any country in the world and they have them some very innovative ways for how they actually make that R&D funding matter it's not just about spending it's about how you make it matter to the startups and the companies using it and the role of the military Joel Joe is like amazing these young 18 year olds go into the military when they finish high school male sir for three years female sir for two years they get the most incredible leadership and entrepreneurial experience in the battlefield and the entire economy knows how to read a military resume investors CEOs of companies when these guys come out of the military they know how to integrate them in their battlefield experience into the economy and the u.s. does not know how to do that and we look at how we could better integrate our soldiers and Marines serving in places like Iraq and Afghanistan coming back with incredible experience and getting them to work we don't know how to do that today hey damn real quickly is part of this because of the size I mean Israel's a nation about the size of New Jersey you've got that issue you've got the fact that it's such a young country they're still looking for immigrants to come in is there a tipping point where all of that changes I don't think so I mean I think what is driving it is this sense of resilience it's sort of a national ethos more than anything about survival about I mean I you know startups these entrepreneurs were in Israel we're taking unbelievable pay cuts working next to nothing during the global meltdown because venture capital is drying up and they just wouldn't give up I think in a way that their peers were giving up around the world during wartime they stay open that you mentioned Buffett in his car I mean that's an amazing story Katusha rockets were flying right near the factories of the is car headquarters as Buffett was making his decision about whether or not to go through with the deal the CEO of his car called Buffett and said Warren I want you to know we interview them we interview a number of these interesting characters and it's through their eyes that we that we talk you know tell these stories he called Buffett and said Warren I want you to know for our customers there will be no war and what he meant to say is for his customers around the world we won't be late on one single shipment no matter what we do no matter what are blowing up it is this sense of no matter what you throw at us the Israelis argue we will survive and I think it's that ethos of survivability that we really try to explore and dig into and explain and see how some of that could be trans transferred here that is the key dr dandy is the israeli government pro-business pro free-market Pro capitalism do you see do you see us actually not heading that way but maybe heading in the opposite direction it's funny I feel that the US government and the Israeli government are moving in opposite directions the u.s. the Israeli government was was founded in pseudo I would say neo socialist roots and the government meddled and the economy was in terrible shape for much of the country's life and it's really only in the last 10 or 15 years particularly early 2000s when Prime Minister Netanyahu who was then finance Minister Netanyahu engaged in a number of number of reforms and privatizations that loosened up the economy and was a big factor and and he's obviously committed to moving more and more in that direction the u.s. is moving in the opposite direction alright and that's troubling it so we're not hitting that way we're actually hitting the opposite that that's not good anyway because the innovation is is really that I mean we need it it's ever it's like you know on everyone's top five things that that companies need to go forward right absolutely I mean if we can cultivate a culture of entrepreneurship and innovation among our young people the way the Israelis do and that is one of the big areas of emphasis that we talked about in the book is how do they teach young people about taking ownership about responsibility about being a manager about being an entrepreneur about how to make decisions every day with imperfect information how to deal with ambiguity it is amazing the emphasis we interviewed you know the CEOs of Google we interview the CEOs of eBay senior executives from Cisco Cisco has bought nine companies in Israel and they're looking to buy more we interviewed the senior leadership of Intel and they all say you take the average Israeli 25 year old when they finish the military experience and they finish the university experience you take that 25 year old and put him or her up against their peers anywhere else in the world every single day of the week they would hire the Israeli because their capacity to manage and lead at young age and deal with real problems and have real perspective is unlike anything in the world dan thank you and we hope to see you again soon good luck good luck with the book thanks guys good to be with you

34 Comments

  1. Fire cracker said:

    b.s!

    June 28, 2019
    Reply
  2. Jim Trocchio said:

    just watched you on megyn show you really talk like an idiot jim sr.

    June 28, 2019
    Reply
  3. Support them - Crowdfunding for great projects said:

    Excellent video. 👑

    Eventually you wanna look at my channel too.

    June 28, 2019
    Reply
  4. Noa Verner said:

    israel invent the disc on k..! too

    June 28, 2019
    Reply
  5. Mar mAR said:

    start up nation? It's a Nazi nation which steals Palestinian lands, farms, water and arrest 13 year old kids, bomb UN schools in the West bank and never forgets to cut down olive trees. Barbarian state, I'd say! It also successfully robed the US in a big way!

    June 28, 2019
    Reply
  6. LombardMilitia said:

    The greatest gift they could give the entire world would be their coming back to where they came from: Eastern Europe or Williamsburg…

    June 28, 2019
    Reply
  7. LombardMilitia said:

    The only things you can learn from those FAKE jews is killing women and children, doing false flag operations and stealing land and resources using the yankee useful idiots in uniform… If you want to do something smart instead, start a revolution in Jordan, a REAL revolution and hang by his balls your puppet clown "king" Abdallah. That would be a nice first step.

    June 28, 2019
    Reply
  8. nir31isback said:

    Pakistan was the best ally of the US. Still don't get why the US had to humiliate its Muslim ally by killing Bin Laden

    June 28, 2019
    Reply
  9. XcXtrippyXcX said:

    Just imagine the gifts America could give us if they were able to spend less time defending Israel and less money providing ridiculous Foreign Aid to a supposedly financially self-sufficient country…

    June 28, 2019
    Reply
  10. KING AMONGST MAN said:

    Salam from Israel

    June 28, 2019
    Reply
  11. orporator said:

    Why do you have to use these impolite words?
    Can't we just have a civilized discussion you fucking dumb son of a biatch?

    June 28, 2019
    Reply
  12. Sam Adam said:

    kiss my ass ! we dont fucking need you

    June 28, 2019
    Reply
  13. Sam Adam said:

    agree with you brother ! i am one in this shit place

    June 28, 2019
    Reply
  14. Sam Adam said:

    come say that to my face ! am in israel

    June 28, 2019
    Reply
  15. Sam Adam said:

    do you really wanna know what we will give you ? we will give you more war and destruction thats what we will give you ! suck your bloody money and turn you into a starving nation 😉

    June 28, 2019
    Reply
  16. Lisa J. Peck said:

    A leader adapts, sees the opportunity in the changing circumstances, and leads.

    June 28, 2019
    Reply
  17. botchalism said:

    They are doing what any country would do that is being bulldozed and settled on. They use cheap rocket propelled grenade and rocks because they don't have the United States to spoon feed them free money and free weapons, go figure. They don't have bullet proof glass because they probably can't afford it, let alone afford decent cars.

    June 28, 2019
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  18. Shira Reinberg said:

    And what they do is perfectly innocent and fine? Have you ever heard of a jewish suicide bomber?Do you know that they have shot thousands of missiles and rockets into israel? Did you know that alot of israelis have to use bullet proof buses and bullet proof glass on their cars and absolutely no arab buses or cars need have bullet proof glass? i wonder why that is? and I don't need research, I live in israel in the west bank in a settlement surrounded by arab villages and proud of it.

    June 28, 2019
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  19. botchalism said:

    Third world "shit halls" as you so eloquently put it, actually benefit immensely from aid money since they are so impoverished. Israel on the other hand is not a poor country, so why do they need our aid? At a time when you warmongering Teabaggers are talking about cutting every program in existence, make sure you start by cutting Israel's aid, they sure as hell don't need it, and our dilapidated schools could use every cent of that 2.4 BILLION dollars.

    June 28, 2019
    Reply
  20. botchalism said:

    Every third world country has heinous crimes that go unpunished, regardless of whether or not they are Muslim countries. Israel on the other hand is a well off 1st world country, they have no excuse for outright GENOCIDE of Palestinian people, and they utilize cluster bombs and white phospherous which are BANNED by the Geneva convention. I've done my research, where are your sources? We both know you haven't researched shit.

    June 28, 2019
    Reply
  21. botchalism said:

    I don't need to visit a country to know it's despotic. I've had friends who have visited Israel, and they were careful not to wear any crosses or reveal the facts that they were Christians because Israelis are prejudiced against Christians. I also don't need to visit Israel to know that they have one of the strongest lobbies in America, forcing us to fight their battles and supply them with FREE military aid, FREE loans (which they often DO NOT PAY BACK), and outright BILLIONS IN FREE MONEY!

    June 28, 2019
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  22. Shira Reinberg said:

    and please look at isran and afganistan and yemen before going on about maiming childrem. They stone and throw acid on girls there for wearing pants. If they did that here, that person would be arrested in a second. In alot of arab countries they'd probably get a reward. Please do proper research before accusing israel on anything of the sort. If you had, you would have probably realized how wrong you are from the truth.

    June 28, 2019
    Reply
  23. Shira Reinberg said:

    Have you ever even been to israel? How can you accuse that kind of stuff without even having been there ? If you just go on what you read and watch whats in the leftist media, you wouldn't know anything. They screw up all the facts because they hate isareli and love a good tragic story that makes israelis look bad and the arabs like "poor victims" and why do you think they have security checkpoints? For fun? Don't you know that everybody including israelis have to go through them?

    June 28, 2019
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  24. dan livni said:

    ALL what? They owe you Jesus or you owe them one Jesus that took from them?

    June 28, 2019
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  25. dan livni said:

    All start up and innovation in Israel mostly bases on private money of Israelis and foreigners that have confidence on the Israeli entrepreneurs, professionalism and ability. The government invest on certain projects that serve its functional and administrative needs. The start up market in Israel is the less connected and less dependent on government bureaucracy. At the same time it's one of the most worthwhile and profitable in the market.

    June 28, 2019
    Reply
  26. dan livni said:

    One should look at the US military aid to Israel as a US investment that hugely profits to the US economy itself: More US military industrial manufacturing and gains, More Israeli technology, knowledge and innovations pouring into the US military and industrial units almost for free. The US gets Israel new military and scientific inventions and developments almost the size of the US aid to Israel. Which means that the US gets huge profits from her relationship with Israel.

    June 28, 2019
    Reply
  27. SEO.com said:

    Interesting..

    June 28, 2019
    Reply
  28. maskenmann said:

    JEWS OWN US ALL

    June 28, 2019
    Reply
  29. lordwin Sok said:

    History and Advertising of the book, History of Israel face of survival behind even surrounded by enemies wants to conquer and shared to the world how competitor are they in term of economical situation..brilliant Idea!

    June 28, 2019
    Reply
  30. zobielamouche1 said:

    there are so many cashflows to "israel" (holocaust industry with germany, exploitation of goyim like diamond mine workers in africa, donations of evangelical christians in usa,..), so many "raw materials" they import without paying (like goy women from eastern europe who have to work as prostitutes then,human organs from haiti,…) and so many money they take with force from the palestinians (e.g. their taxes which they retain)

    – i think we need not worry about the zionist economy

    June 28, 2019
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  31. MrVicioussss said:

    @newtype64 Their military budget is $16 billion per year. The US sends them a few billion a year. To say they "don't have a military budget" is nonsense.

    June 28, 2019
    Reply
  32. Tanblondalex said:

    Exactly, ….uprooting original Palestinians from their land and bring new (Jewish only) comers and providing them free land and huge start up financial support directly coming from the American tax payers is a true innovation.
    As for teaching young 18 y/o kids to kill brutally innocent people makes them hell of a leaders indeed.
    Try to stop American flood of money and see how much productive Israel Is

    June 28, 2019
    Reply
  33. Doriel said:

    @newtype64 also if you think its true what you say…what does israel looks 1000x better then "Palestine"(west bank and gaze strip)…you only buy weapons from russia and katyushot…and this arabs/muslims say they want to live in peace…the only thing they do is buy more weapons

    June 28, 2019
    Reply
  34. jegolden1 said:

    For all those griping about aid….Israel isn't the only country who receives it. Pakistan gets $3B in aid and China pretty much owns our economy

    June 28, 2019
    Reply

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