The development of the successful high tech sector in Israel, 1969-2009

Abstract

This article describes the events and processes that led to the development of the Israeli high tech cluster. Understanding the Israeli cluster is important because Israel is probably the most successful example of replication of the Silicon Valley model outside of North America. It explains the development of multiple factors, including sophisticated human capital, technological institutions and an open, global environment, that were crucial for building the Israeli high tech cluster. This is most important for policy makers who want to learn about the successful structuring of a high-technology innovative sector in a small, open economy.