Why Israel is a Tech Capital of the World

This video is sponsored by Skillshare. The first 500 to use the link in the description
get two months free. You, the brave, daredevil you are, open Google
Maps, throw your mouse into the air, and land here. There are palm trees, lots of 20-somethings
talking into their AirPods, and everywhere you look, a familiar logo: Apple, Amazon,
Intel, Yahoo, Microsoft, Google. All within a few blocks of each other. Where are you? Your first guess might be San Jose, maybe
Palo Alto, or Mountain View. That is, unless you noticed the lack of Teslas,
or smell of Hummus, or, the title of this video. This is Silicon Wadi, a cluster of cities
in Israel with one of the highest concentrations of tech companies and startups on Earth. It’s home to Waze, Wix, SodaStream, and
Fiverr, files more patents per capita than all but 4 countries, and is ranked the 4th
most startup friendly nation overall, behind only Canada, the UK, and the U.S. The difference is, those countries aren’t
next door to the Syrian Civil War. 30 members of the UN still don’t recognize
the existence of Israel, including most of its neighbors. In fact, any evidence of traveling there,
on any passport, prevents you from visiting eight of those countries. Because of this, Israeli customs stamps not
your passport but a separate piece of paper. But despite all of this, Despite the constant
threat of terrorism, Despite being only slightly bigger than Fiji and having just two and a
half percent the population of the U.S., Israel creates some of the most successful tech companies
and entrepreneurs in the world. Why? As one of the very important world leaders
who consult my channel for advice, you want to know how to start your very own Silicon
Valley. Well, you’re in luck. The recipe is actually quite simple: First, buy some ping-pong tables, throw down
a couple of bean bags, and, within minutes, a cavalcade of Soylent-drinking, smartwatch-wearing
CS-grads will assemble at your door. Even better, why not build some apartments,
a grocery store, and, while you’re at it, a pharmacy. Then they’ll never leave! Work-life what? Just kidding! Mostly. More than a few countries and cities have
tried charming tech companies with tax breaks, grants, free 21-foot cacti, and other totally
normal things, but almost as many have failed. On the other side of the Arabian Peninsula,
Dubai built what it calls “Free Zones”, areas with special incentives to attract certain
types of companies, like Biotech firms, movie studios, and tech companies. At first glance, Dubai Internet City looks
like a great success. And, to some degree, that’s true. It convinced Microsoft, Cisco, IBM, HP, and
Canon to invest millions of dollars in the middle of the desert, at a time when the future
of Dubai was much more uncertain. But having beautiful buildings with famous
logos on them is not the same as creating an environment of innovation. You’ll find plenty of the former in the
Cayman Islands, but it’s not exactly the first place that comes to mind when you think
“cutting-edge research”. Meanwhile, Silicon Valley is, despite its
very high cost of doing business. In other words, tax breaks may bring companies,
but not necessarily innovation. Corporations come to Dubai largely for its
promise of no income or corporate tax for 50-years, but often only for marketing, support,
and sales, while hiring most of their engineers in the U.S., India, and Israel. So, what do those countries have that others
don’t? There are three basic ingredients to a successful
tech scene. The first is Talent. One of the best predictors of which is, unsurprisingly,
education. In the words of Scott Galloway, “Find the
universities that are gaining the most traction in engineering or STEM and you’re going
to find an ecosystem that can produce a unicorn.” Basically, put a bunch of smart, ambitious
people in a small, contained space, sprinkle-in some idealism, ideas will collide and good
things will happen. At the level of a nation, universities are
about proximity, and hey, if you also learn something along the way, that’s a bonus! Which is great news for Israel, one of the
most educated countries in the world. About 47% of those over 25 have a college
diploma. The Hebrew University of Jerusalem, Tel-Aviv
University, and the Israel Institute of Technology are all globally competitive schools. And because the country is just so small,
and its population so highly-concentrated in just a few regions, it has the same fertile
ground for entrepreneurship as a college campus, at a much larger scale. About 92% of Israelis live in urban areas,
almost entirely in the Northern half of the country. Startups, therefore, are surrounded by their
customers, business partners, and competitors. The other aspect of Talent that’s often
overlooked, but just as important, is demographics. Not just how big a population is, but also
what it’s like. For example, it’s misleading to say only
that Japan has 126 million people and Ethiopia, 98. What those raw numbers hide are their age
and background, which can either act as a free economic multiplier or a bleak and costly
undoing. Japan’s population may be large, but it
takes an unfortunate shape – far too many old people for not enough young. Unless millions of Japanese suddenly change
their mind and start having children tomorrow, the land of the rising sun will slowly set,
as Africa grows into the next major consumer market. Now, Israel’s growth is not quite so dramatic,
but it is growing, which is more than you can say about the future of most developed
countries, including all of Europe, the U.S., Canada, Australia, and China. The problem is not that Japan doesn’t have
working-aged people. Even as its population shrinks, there will
long be millions and millions of workers. But they’ll be busy caring for their parents,
not inventing the next big thing. Israel, meanwhile, has enough people to care
for the old and young, with plenty left over. It also has some extra help: immigration. The Law of Return allows any Jew, their spouse,
children, grandchildren, and even their non-Jewish spouse to come to Israel and receive citizenship. There are even scholarships to cover your
expenses while you learn Hebrew. The result of all this is that there are 140
scientists, technicians, and engineers for every 10,000 Israeli employees, compared to
just 85 in the U.S. The second, much-simpler ingredient is Capital. Starting a business is expensive, and someone
needs to write the checks. The good news is that the only thing Silicon
Valley hates more than affordable housing is missing out. Investors pour money into companies whose
only skill is improving the rate at which they can flush hundred dollar bills down the
toilet simply because they don’t want the feeling of having lost an opportunity. (Cough) SoftBank. Once word gets out that somewhere, like Israel,
is good at producing high-value startups, finding investors became exponentially easier. The more checks are written, the more venture
capital firms pay attention. Israel’s government got the ball rolling
in the ’90s with big incentives for anyone willing to come invest in the country. Today, 4.5% of its total GDP is spent on Research
& Development, which is just barely less than first place South Korea. Now, producing lots of smart, young graduates
and giving them bundles of cash is cool and all unless they take those skills and that
capital to California, giving Americans the jobs and tax dollars. The third ingredient is, therefore, a High
Standard of Living. Israelis have to want to stay in the country. It’s a fun fact for South Africa that Elon
Musk grew up there, but not much use because Tesla and SpaceX are American companies. And this is harder than it sounds. On one hand, entrepreneurs and employees care
about healthcare, crime, public transit, and so on. But, it’s a balance. Because, as salaries rise, companies are less
drawn to the lower cost of hiring an Israeli engineer – currently $73 thousand over, say,
a Californian – 114 thousand. Salaries are so high in the San Francisco
Bay Area, for example, that, if you’re feeling particularly cheap, you might just buy a $20
million private jet to save money, so you can hire employees in less-expensive Houston
and fly them over for the workday. Israel has to be attractive enough for people
but not so expensive that businesses look elsewhere. Together, these three ingredients go a long
way towards making Israel one of the tech capitals of the world. But there’s also another, harder to measure,
but, no less real, factor to consider: culture. If you graduate from Stanford with a degree
in Computer Science on Friday, there’s a very real chance you could walk into a Facebook
or a Microsoft on Monday and start making $100+ thousand dollars a year. Or you could spend your days begging for money
with the possibility of losing a lot only to end up back at square one. When the vast majority of new companies fail,
starting one is a huge risk, especially considering how lucrative the alternative. It takes a certain kind of personality that’s
willing to fail – and do so very publicly. In many Asian countries, the culture of saving
face makes entrepreneurship unthinkable for many. The reputational damage of failure is simply
too great. In Israel, however, a spirit of Chutzpah – roughly,
audacity or bravery – has just the opposite effect. The author of the book Start-up Nation writes
“Somewhere along the way – either at home, in school, or in the army – Israelis learn
that assertiveness is the norm, reticence something that risks your being left behind.” Israel is one of a handful of countries that
requires long military service for everyone – 3 years for men and 2 for women. During their service, Israelis learn skills
that apply to the workplace, make lifelong friends and business partners, and are reminded
that their country can’t be complacent. Ultimately, Israel proves that there is no
single factor to economic success. It has high rates of education, lots of government
investment, and, especially considering its geography, an impressive standard of living. But it isn’t ranked number one in any of
those categories. Instead, a combination of all these things,
along with factors like American foreign aid, allow the country to prosper. It also shows that top-down, government policies
are only so effective at encouraging entrepreneurship. Countries can hand out money left and right,
but innovation occurs at the level of the individual – his or her ability to take risks,
start new projects, and learn new things. If that sounds like you, let me recommend
these videos on Skillshare. This one is taught by Guy Kawasaki, the guy
responsible for marketing Apple’s revolutionary 1984 Macintosh. In short, bite-sized videos, he answers business
questions like How to ask for money from investors, how to pitch your idea, and why you should
network. If you already have a business idea in mind,
there are also lots of specific lessons. The head of production at Anchor, for example,
has this class on how to start a podcast. Whatever you want to learn – how to draw,
take better photos, make YouTube videos, Skillshare probably has it. Better yet – for you, it’s free, for two
months. Just be one of the first 500 people to use
the link in the description.

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100 thoughts on “Why Israel is a Tech Capital of the World

  1. Wealth Inequality between the arabs and jews is pretty horrific. Also between the Ethiopian Jews and White Jews. Classic racism.

  2. So we, in Russia, have all 3
    Talent (from free education)
    Capital and QOL from oil (sopposedly)
    And service by requirement in army (but only 1 year only for man), like you show at 10:00

    Why arent we called "tech capital"?

  3. As an Israeli,
    I have to say that the want to live in the country is not very high. Everything is expensive and every year or so you have an intense month of war/battle. Most people want to move away, if they had the chance I'm sure they will take it. So I'm not sure how accurate the video is in saying that the third attribute, a high standard of living is applicable here.

  4. Because Israel isn't loaded up with brainwashing and terrorism like most morons that live around Israel's region.. that's why

  5. Israel invest ao much in tech to produce and sell defence systems, espionage technology as well as grow international trade business to force countries to accept their ethnic cleansing for free stolen land and tax incentives.

  6. Globalism would fail without America's infrastructure. Now they are using technology that couldn't be developed outside of the US to destroy the freedom that created it.


  8. US gives tons of free money to Israel for no reason at all besides the political rulers of US. Who happens to be a tiny minority but has the same ethnic background as Israelis. Can't say JQ on youtube or you'll get banned.

  9. If our country was an apartheid state with relentless expansion drive of illegal settlements in Palestinian territories, we could be a tech capital as well 🙂

  10. So nobody is going to talk about Israel's wrong doings and forced occupation of Palestine ??? wow what have become of this world.

  11. You Europeans in Israel PRETENDING to be jewish to STEAL all arab oil for 1000 years is Not Semitic nor Jewish…
    "Wolf in lambs attire*…
    Snake from bowels of hell itself
    *Mass murderer : Children of Satan himself*…
    God promises money to Satan because he is a FOOL who bought material in this life for Eternal Molten Helll… A real Fool !!!

  12. You know there were plans for there to be a Jewish settlement in North West Australia during the 30's and 40's. Got canned due to the government not wanting an 'alien' colony' being established. Crap, the area today is still virtually uninhabited.

  13. Coming from a Jew who speaks Hebrew, I would recommend the word “ruach”, which means strength or spirit, instead of the word chutzpah. Great video though!

  14. Israel is the tech capital of the world but yet they need American money. #endlesswars #jewish #neocons #noamericanlivesforisrael #therewillbeREVOLUTION #ExpellTheJews

  15. The video starts out with a map with the outline of Seattle and then moves to talking about the greater Tel Aviv area. Tech is now more widespread over the rest of the country such as Beersheva and Jerusalem, but hey its a small country so why make a fuss? You noticed that we don't have a lot of Teslas on our streets and that also means we don't have so much money in our bank accounts either. US aid money disappeared 10 years ago and what remains is military aid money of which 75% must be spent in the US. Israeli startups moving to New York and Boston make a much bigger splash in the US economy than US military aid does in Israel. You need to get a better grip on your data and how the bigger picture shapes up. You are correct that our neighbors present a much bigger challenge that just money in aid. Aid money isn't everything and US politicians need to put aside the idea that throwing its weight around is the answer to how other nations make policy. The dollar just isn't that powerful now – how big is student debt? You need to solve that problem and a bunch other problems before you think about how you can pressure other countries on anything. So forget foreign aid and think more constructively.

  16. That's not how it happened ,Yet you throw off on Japanese People… Maybe call up Ol Epstein's People if they are not dead lately.

  17. Amazing what you can do with some stolen land, imported European know-how, cheap indigenous labour and BILLIONS of dollars each year in welfare from the beleaguered American taxpayer. Israel is like a lazy welfare queen bragging to you about their new leather couch.

  18. Was there ever any doubt about the brilliance of the Jewish people and the nation of Israel? Btw I know about this new drug Israeli scientists have developed recently to treat childhood leukemia and its success rate is 94% that means out of 100 patients 94 were cured and have the promise of a great and wonderful life What have Israel'a enemies given to the world? Pain heartache grief destruction hatred tears that's what Israel not only needs our protection but also our thanks Baruch bashem Israel baruch bashem

  19. Israel is smart because there are no flat-earthers and anti-vaxxers.
    no joke.
    I never saw an Israeli Pro-diseaser or a flat earther.

  20. While it is the tech capital of the world, Bitcoin is highly popular in South Africa, the silicon valley of Africa and Middle East in my opinion… Interesting: https://www.youtube.com/watch?v=7eX89pEo6bw&t=211s

  21. Very naive, ah baby. It isnt why Israel succeed..but you cant succeed to understand.. which is a loop of why they can do it all 100 fold better, faster, surer.then rest

  22. Greatest promotional video about Israel. You gotta work for their ministry of tourism bro. You're way more effective than the blabbering Israeli fools they parade on Fox News who scream Iran, Iran, Iran day in and out.

    ( 40 ) O Children of Israel, remember My favor which I have bestowed upon you and fulfill My covenant [upon you] that I will fulfill your covenant [from Me], and be afraid of [only] Me.
    ( 41 ) And believe in what I have sent down confirming that which is [already] with you, and be not the first to disbelieve in it. And do not exchange My signs for a small price, and fear [only] Me.
    ( 42 ) And do not mix the truth with falsehood or conceal the truth while you know [it].
    ( 43 ) And establish prayer and give zakah and bow with those who bow [in worship and obedience].
    ( 44 ) Do you order righteousness of the people and forget yourselves while you recite the Scripture? Then will you not reason?
    ( 45 ) And seek help through patience and prayer, and indeed, it is difficult except for the humbly submissive [to Allah]
    ( 46 ) Who are certain that they will meet their Lord and that they will return to Him.
    ( 47 ) O Children of Israel, remember My favor that I have bestowed upon you and that I preferred you over the worlds.
    ( 48 ) And fear a Day when no soul will suffice for another soul at all, nor will intercession be accepted from it, nor will compensation be taken from it, nor will they be aided.
    ( 49 ) And [recall] when We saved your forefathers from the people of Pharaoh, who afflicted you with the worst torment, slaughtering your [newborn] sons and keeping your females alive. And in that was a great trial from your Lord.
    ( 50 ) And [recall] when We parted the sea for you and saved you and drowned the people of Pharaoh while you were looking on.
    ( 51 ) And [recall] when We made an appointment with Moses for forty nights. Then you took [for worship] the calf after him, while you were wrongdoers.
    ( 52 ) Then We forgave you after that so perhaps you would be grateful.
    ( 53 ) And [recall] when We gave Moses the Scripture and criterion that perhaps you would be guided.
    ( 54 ) And [recall] when Moses said to his people, "O my people, indeed you have wronged yourselves by your taking of the calf [for worship]. So repent to your Creator and kill yourselves. That is best for [all of] you in the sight of your Creator." Then He accepted your repentance; indeed, He is the Accepting of repentance, the Merciful.
    ( 55 ) And [recall] when you said, "O Moses, we will never believe you until we see Allah outright"; so the thunderbolt took you while you were looking on.
    ( 56 ) Then We revived you after your death that perhaps you would be grateful.
    ( 57 ) And We shaded you with clouds and sent down to you manna and quails, [saying], "Eat from the good things with which We have provided you." And they wronged Us not – but they were [only] wronging themselves.
    ( 58 ) And [recall] when We said, "Enter this city and eat from it wherever you will in [ease and] abundance, and enter the gate bowing humbly and say, 'Relieve us of our burdens.' We will [then] forgive your sins for you, and We will increase the doers of good [in goodness and reward]."
    ( 59 ) But those who wronged changed [those words] to a statement other than that which had been said to them, so We sent down upon those who wronged a punishment from the sky because they were defiantly disobeying.
    ( 60 ) And [recall] when Moses prayed for water for his people, so We said, "Strike with your staff the stone." And there gushed forth from it twelve springs, and every people knew its watering place. "Eat and drink from the provision of Allah, and do not commit abuse on the earth, spreading corruption."
    ( 61 ) And [recall] when you said, "O Moses, we can never endure one [kind of] food. So call upon your Lord to bring forth for us from the earth its green herbs and its cucumbers and its garlic and its lentils and its onions." [Moses] said, "Would you exchange what is better for what is less? Go into [any] settlement and indeed, you will have what you have asked." And they were covered with humiliation and poverty and returned with anger from Allah [upon them]. That was because they [repeatedly] disbelieved in the signs of Allah and killed the prophets without right. That was because they disobeyed and were [habitually] transgressing.
    ( 62 ) Indeed, those who believed and those who were Jews or Christians or Sabeans [before Prophet Muhammad] – those [among them] who believed in Allah and the Last Day and did righteousness – will have their reward with their Lord, and no fear will there be concerning them, nor will they grieve.
    ( 63 ) And [recall] when We took your covenant, [O Children of Israel, to abide by the Torah] and We raised over you the mount, [saying], "Take what We have given you with determination and remember what is in it that perhaps you may become righteous."
    ( 64 ) Then you turned away after that. And if not for the favor of Allah upon you and His mercy, you would have been among the losers.
    ( 65 ) And you had already known about those who transgressed among you concerning the sabbath, and We said to them, "Be apes, despised."
    ( 66 ) And We made it a deterrent punishment for those who were present and those who succeeded [them] and a lesson for those who fear Allah.
    ( 67 ) And [recall] when Moses said to his people, "Indeed, Allah commands you to slaughter a cow." They said, "Do you take us in ridicule?" He said, "I seek refuge in Allah from being among the ignorant."
    ( 68 ) They said, "Call upon your Lord to make clear to us what it is." [Moses] said, "[Allah] says, 'It is a cow which is neither old nor virgin, but median between that,' so do what you are commanded."
    ( 69 ) They said, "Call upon your Lord to show us what is her color." He said, "He says, 'It is a yellow cow, bright in color – pleasing to the observers.' "
    ( 70 ) They said, "Call upon your Lord to make clear to us what it is. Indeed, [all] cows look alike to us. And indeed we, if Allah wills, will be guided."
    ( 71 ) He said, "He says, 'It is a cow neither trained to plow the earth nor to irrigate the field, one free from fault with no spot upon her.' " They said, "Now you have come with the truth." So they slaughtered her, but they could hardly do it.
    ( 72 ) And [recall] when you slew a man and disputed over it, but Allah was to bring out that which you were concealing.
    ( 73 ) So, We said, "Strike the slain man with part of it." Thus does Allah bring the dead to life, and He shows you His signs that you might reason.
    ( 74 ) Then your hearts became hardened after that, being like stones or even harder. For indeed, there are stones from which rivers burst forth, and there are some of them that split open and water comes out, and there are some of them that fall down for fear of Allah. And Allah is not unaware of what you do.

  24. CSGO Players: Insist on using the Desert Eagle (an Israeli Pistol)
    Also CSGO Players: "Israel isn't a country."
    Me: "Bruh?"

  25. Israel is the biggest terrorist country and got all of its success from stealing land, culture and lives! fuck anyone who supports israel as a country!

  26. I love and support ISRAEL. This is where my SAVIOR born and the promise land, a chosen people of THE MOST HIGH GOD, and I want to visit atleast once this HOLY LAND❤️❤️❤️🙏🏻🙏🏻🙏🏻…. BLESS YOU OH ISRAEL

  27. Jews got a country given to them and the greasy buggers oppress the native people who were there first. Lol what a kind and understanding people those Jews are said no Palestinian ever. Fucking sick . So when are north americans going to give the Aboriginal people their land back?

  28. I learned Hebrew language because, living in Quebec, French and English was not enough to get any job.
    Then Japanese, then Chinese then, finally, I got a job in Bay Area.
    Knowing these languages didn't help. C language, the Borland dialect, is what saved my life.

  29. Oh, uh And US government aid$. Duh🥴 Of course, haven't you seen the capital building!? I actually don't know this but do any Arab countries get US aid$? I know there capital building doesn't look like the White House.

  30. I like that they blame Palestine for blocking people who travel to Israel 😀 like nigga get a clue. Who controls Palestine's borders? Sure as shit not Palestine

  31. Was the b-roll of soldiers actually russian/eastern european soldiers?
    I dont see too many Israelis wearing fur-lined hats.

  32. “Israeli Jew’s TOP thief’s of US Commercial and Military Technology.”🔥💩🔥💀🔥🐍🔥💥🔥🐀🔥💥🔥🐍

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