Harvard professor Paul Gompers is leading a research project analyzing the factors behind Israel’s strong startup and high-tech ecosystem, which has contributed around 70% of the country’s per-capita economic growth over the past 35 years. The study aims to identify the key drivers of this success and assess how they can support Israel’s future development.
Gompers notes that Israel’s achievements are rooted in unique historical and cultural conditions, including a high share of immigrants, a strong willingness to take risks, tolerance for failure, and a strong focus on education.
Key challenges include a shortage of skilled talent, high tech salaries, and low participation of ultra-Orthodox and Arab Israelis in the tech workforce. He also highlights concerns about brain drain linked to political uncertainty and stresses the importance of regulatory stability and judicial independence for maintaining investor confidence.
The research further points to Israel’s reliance on foreign venture capital and underscores the role of multinational companies such as Intel and Google in strengthening the country’s high-tech ecosystem.
Read the full article on CTech here.
