Despite being a small country with a population about the same as London, it has occupied the headlines for as long as I can remember. Driving between meetings is a lesson in both history and geopolitics, Nazareth on the left, the Syrian border just over the hills ahead and the West Bank fence across the field.
Economy drive
Driven by innovation, the economy is thriving. The number of start-up companies is second only to the US, in part because spending on research and development as a percentage of GDP is greater than anywhere else in the world. Education is taken seriously and intellect celebrated, particularly when it has practical applications.
Visiting a handful of companies in a few days is hardly adequate, but a few themes emerged. I was told it is two-to-three times quicker to develop new ideas and bring them to the commercial world than in the US. It is also cheaper, costing up to 50% less.
Government influence is important, with the Office of the Chief Scientist prepared to invest at an early stage, along with a highly developed infrastructure of venture capitalists and incubators. A further benefit is the way in which military service, compulsory for all 18-year-olds, is implemented.
The Talpiot programme skims off the academic elite to develop new technologies for the army, which means that when they emerge at 21, with experience of the real world and a first degree, many go on to apply these skills to the business sector.
A few highlights of what I saw and heard make the point. In the pharmaceutical/biotechnology sphere, I visited a company that uses computer algorithms, not to trade the market but to identify undiscovered targets for drug development.
I also met a chip engineer working on an eye implant that will bring sight to the blind, powered by an infrared source in a fairly ordinary looking pair of glasses. This is not science fiction but less than a year away from clinical trials.
Then a bioengineer that has worked out how to manufacturer spider-web silk that is as strong as comic book fans have long known. The uses of a material with these extraordinary properties are endless, from tyres to providing the scaffolding for tissue implants.
Finally, I met with a com- pany that is working on plant sensors that not only improve yields by automatically feeding and watering crops at the right time but also provide early diagnosis of disease, based on a library of symptoms.
Small country, big returns
Just like small companies, small countries are a good place to look for outperformance. Commercial partnerships with major companies based in all parts of the world, particularly in the US and Europe, are common.
