Why The World’s Largest Tech Companies All Want A Piece Of The Israeli PieOct. 11, 2015
They all want a piece of the Israeli pie: Microsoft, Google, Apple – dozens of large, multinational companies have chosen to establish offices and R&D centers in the Startup Nation. Why did they all pick Israel and what exactly are they doing here?
It’s a little known fact that two thirds of all R&D employees in Israel are employed by foreign companies such as HP and Microsoft, according Israel’s Central Bureau of Statistics. Currently, there are 250 R&D centers of foreign high-tech companies in Israel, according to IVC Research Center. The heavy presence of multinationals in Silicon Wadi clearly affects the local economy; consider this: Intel Israel is responsible for almost a tenth of Israel’s overall exports!
Some of the most active companies locally include international technology giants such as Intel and IBM, which set up shop in Israel in the early 70’s and have grown exponentially to employ thousands of local employees. Some of these companies’ latest technologies are being developed in Israel, for example: several components of IBM’s highly praised Watson (its artificially intelligent computer), or Intel’s super-fast Core 6 processors.
Thanks to multinational R&D centers, Israel is now a patent powerhouse. Over the past year, the number of Israeli patents filed in the US jumped 21 percent, making it the third-largest patent filer per capita, according to a study by Israeli business data firm BdiCoface. Only Japan and Taiwan outranked Israel. According to BdiCoface, between 2009 and 2013, IBM produced the most patents in Israel (674), followed by Intel (435), Marvell (281), SanDisk (261) and HP (197).
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