Entrepreneurial Ecosystems in Israel: The Changing Role of Government Support: A Historical Perspective

Abstract

Knowing that innovation is considered a driver for economic growth and employment, national innovation and entrepreneurial ecosystems in Germany, the UK and Israel were recently compared for a UK government agency to enhance their understanding. The role of government support was highlighted as having a significant impact on the resilience and robustness of technology infrastructures worldwide — and in Israel specifically [1]. Referred to as the ‘Start-up Nation,’ Israel and its entrepreneurial success are topics of discussion and reflection across the globe. This work, based on numerous interviews and archival research, provides insights as to how the role of the Israeli government has adapted over time to support this phenomenon. From bi-national marketing agreements to full-blown government-funded incubators and accelerators, programs and government goals have constantly changed to provide a layer of support for technology management and intelligent systems. Funding mechanisms and programing have adapted to shifting populations and target audiences. As opposed to merely summarizing history, this paper breaks events into three distinct time periods to reveal how different government programs were made available, due to changes in expectations and targets that triggered government to adapt their offerings to support changing needs. The final discussion identifies how local and national entities aim to keep pace with ever-changing needs to manage technology as well as intelligent systems to keep abreast of the increased speed of innovation. This includes the introduction of public/private support agencies intended to be more flexible and agile to meet the continuously-shifting enterprise, cluster and ecosystem needs of the country and its global outreach.