Nicknamed “Startup Nation”, Israel ranks first in the world in terms of the number of start-ups per citizen. In Israel, one company is started annually per 1400 people, (compare France, which has 0.112 newly started companies for the same number of inhabitants, and Germany, with 0.056 startups per 1400 inhabitants, while the corresponding figure for the UK is 0.21).

Technology companies such as Facebook, Apple, IBM and Microsoft have all chosen to establish research and development centers in Israel. Jews, who make up only 0.2 percent of the world’s population, have been awarded over 20 percent of all Nobel Prizes.
One reason for this development is the power of example, and that success is contagious. Also, Israel has a very small area, which facilitates communication. The country’s vulnerable situation and the population’s habit of facing great challenges have confirmed the saying that necessity is the mother of invention.

Israel’s culture of innovation and technological influence around the world is also connected with the country being forced to prioritize its defense industry for its survival. Military service trains leaders who are given great responsibility and have to think outside the box. Technical innovations that have been created to defend the country then reach a civilian market. Israel’s intelligence service is at the forefront of cyber-espionage, which in turn helps the development of the IT industry.
Necessity, scarcity and hardship have given Israel a survival strategy that calls for solutions that are both creative and quick. A high level of knowledge-sharing between the various actors in Israel contributes to rapid development and in-demand solutions that help global companies.
As a persecuted group, Jews have always had to work harder to reach the top. Jewish families have always emphasized education, and Jewish culture fosters critical thinking, analysis, and debate.
For nearly 2000 years of dispossession, Jews have had to read and study to practise their Judaism. Literacy prevented them from being assimilated, and literacy and economic development are linked. The exclusion of the Jews has given Jews a scepticism that can question both authorities and established “truths”.