Multi-National Corporations and IsraelSep. 21, 2016
By Dr. Shlomo Markel, Vice President at Broadcom, and Meir Halberstam, Director of Finance & Corporate Services at Broadcom.
Israel's High-tech is famous for its huge number of small innovative startups and their great exits like Waze, acquired by Google in 2013 for $1.3 billion and others. Of course, also for being number 3 (!) with the amount of companies IPO on NASDAQ, trailing behind after the US and Canada only. Take for instance, the IPO of Mobileye, which raised $890 million at a valuation of $5.31 billion.
However, there is yet another Israeli record breaking sector in the high-tech, which is sometimes seen wrongly as “not beneficiary for Israel” in some of the public’s eyes. This is the over 250 large multinational corporations (MNCs) that have made their way to Israel to establish research and development centers. Isn't it most common to think that these BIG MNCs come to Israel to shop, eat and clear out, or alternatively, just stay in Israel to avoid taxes, but for sure not to support the local economy, or even contribute to Israel’s STEM (Science, Technology, Engineering and Math) education?
But do we really know what these companies do for the good of Israel? Companies like Intel, Broadcom, IBM, General Motors, Qualcomm, EMC. Deutsch Telekom, Apple and Google contribute tremendously to Israel’s economy and its education, in more ways than one and in many cases, much more than the so called “Israeli” companies.