Dan Vilenski

1
Government Support of the Israeli Hi Tech
Industry

• Dan Vilenski
• Former Chairman, Applied Materials Israel
• Board Member, Israel Association of Electronics
  and Software Industries

2
3 Practical Issues/Opportunities
Leading governments recognize that successful
hi-tech industry results from shared investment.

• Exploit the Golden Eggs that are developed at
  Israeli Research Academies.
• Offshore manufacturing and its impact on
  employment.
• Nanotechnology Enabling technologies that
  should maximize the Government/Academy/Industry
  triangle.

3
Issue/Opportunity 1
Turn brains into bucks  create models that
transform Israeli innovation into jobs, wealth
and exports.
How?

• Exploit the Golden Eggs that are developed at
  Israeli Research Academies.

4
Issue/Opportunity 1
Academys main objectives

• Educate and train Scientists and Engineers.
• Create new and significant scientific
  advancements through basic research.
• To be a source of knowledge and innovation for
  Israeli industry.

5
Issue/Opportunity 1
Recommended changes

• Orientation - Head of the academic business unit
  should have both academic and business
  orientation.
• Recognition - Selectively recognize industrial
  achievements by academic staff as an equivalent
  to academic achievement.
• Israeli Sabbatical - Government should recognize
  sabbaticals of qualified academic staff in the
  Israeli industry with the same tax benefit as
  overseas sabbaticals.

6
Issue/Opportunity 2
Global Impact of Offshore Employment by 2008
7
Issue/Opportunity 2
Issues and opportunities

• Israel cannot compete in manufacturing of high
  volume consumer products.
• Israel needs to develop world class manufacturing
  capabilities/jobs for competitive manufacturing
  of products created in Israel.
• Need to accelerate existing government support
  programs, like MAGNET.
• Reverse the trend of shutting down Israeli Trade
  Schools, like BASMAT.

8
Issue/Opportunity 3
Use Nanotech to Maximize National Collaboration
Why?

• Over the next 25 years, new nanotechnologies will
  drive the continued growth of many existing
  industries.
• Nanotech is an enabler for other technologies,
  and so demands an inter-disciplinary,
  collaborative approach.
• Israel is currently a world leader in academic
  research for nanotech, though it lags in
  industry.
• The cost of not building Israeli industry Israel
  sells off its leading IP in this area to foreign
  interests and misses the opportunity to grow
  Israeli jobs.

9
Issue/Opportunity 3
Nanotechnology can solve some very difficult
problems for Israel and the world

• Homeland security
• Economical energy
• Clean water
• Eradication of disease
• Efficient, economical food production
• Environment-friendly products

10
Issue/Opportunity 3
Electronics the historical market

• In 1947, when the transistor was invented, Bell
  Labs claimed it would replace the vacuum tube and
  foster a multi-billion dollar industry.
• Not everyone believed it.

11
Issue/Opportunity 3
Electronics the historical market

• Today, 59 years later, total sales for the
  semiconductor component industry is around 200
  billion, supporting a 900 billion industry.
• And still growing.

12
Issue/Opportunity 3
Example Israeli nanotech Triangle Donation
Matching model
Private Donation to the University
250 Million Budget
Matching by the University
Matching by the Israeli Government
13
Issue/Opportunity 3
Israeli Nanotech Achievements

• The MAGNET-sponsored consortium for nanomaterials
  development (Nano Functional Materials
  Consortium)
• The new Berrie Nanotechnology Institute at the
  Technion with an approved budget of 78 Million
  with clearly defined, tangible goals.
• Expecting approval of matching funds for other
  Israeli academy, that will bring the total
  available budget to nearly 250 Million dollars
  (government participation of 80 Million).
• Since 2005, we are engaged in projects that
  promote focused early-stage recognition and
  collaboration among Israeli industry, academy
  and government.

14
3 Practical Issues/Opportunities
Leading governments recognize that successful
hi-tech industry results from shared investment.

• Exploit the Golden Eggs that are developed at
  Israeli Research Academies.
• Offshore manufacturing and its impact on
  employment.
• Nanotechnology Enabling technologies should
  maximize the Government/Academy/Industry triangle.

15
Thank You.