Israel Hi–Tech Industry

Michael AdmonDirector Hi-Tech Department

Hi – Tech Department

Israeli Hi – Tech Industry by Sectors:

Information & Communication Technologies

Telecommunication

Software

New Media

Electronics

Life Science Industry

Medical Device & HealthCare IT

Biotechnology & Pharmaceuticals

R&D Investments as % of GDP

Source: Central Bureau of Statistics

Hi – Tech Export ($M)

The 2009 Global Economic Crisis had a relatively small effect on the Israeli economy!

2009 2008 2007 2006 Field

4,673 4,970 3,636 3,286 Pharmaceuticals

4,014 5,071 4,916 4,370 Telecommunications

5,924 3,716 3,744 3,779 Electronics (Inc. Electro-Optics)

1,397 1,600 1,573 1,450 HealthCare Products

4,200 5,680 4,560 4,320 Software

20,208 21,037 18,429 17,205 Total

Focus on Innovation

– The Developer of IP Telephony Communication. VocalTec released the first VoIP program in 1995.

– Intel’s Centrino dual processor and Pentium 4 microprocessors conceived & developed in Intel’s Israeli R&D center

– CheckPoint leads the Firewall/Security market.

– Invented the Disk on Key, purchased by SanDisk

– Given Imaging pioneered video capsules endoscope, PillCam, and related products for GI disorders.

– Intecpharma’s Accordion Pill improves drug absorption through controlled release of the medication.

Telecommunication

Facts & Figures:

No. of Exporters – 590Export Total – $4.1 billion

Main Markets

Main Advantages: High skilled workforce

Innovative start-up companies

Vast accumulated experience in Telecom technologies

Early adapting market with high penetration rate

Highly competitive domestic market – perfect test-bed.

Flexibility to apply changes

Eu-rope33%

Asia28%

USA25%

RoW14%

InfrastructureNetwork Equipment & Systems:

• Wireless: 4G/ LTE; Wi-Max• Network Optimization• Converged Communications• Broadband, DSL• Wi-Fi / Mi-Fi• Femtocell / Picocell• InBuilding coverage• Network components• IP Infrastructure & Service Platforms• Satellite Communications

Telecom‘s Main Segments:

VASCustomer Care & Billing• Customer care & Self Customer Care• Billing• CRM & Customer Base Analysis• Churn PreventionMessaging• VM: Voice Mail; Video Mail• Text & Multimedia Messaging• IM/ E-Mail/ ChatContent• Content Delivery Platforms• Content Adaptation• Mobile Internet• Mobile TV/ IPTV

Applications• Gaming• Location Based Services (LBS)• Music• Social Networks• Mobile Advertisement

HS & DEVICES• Operating Systems• Pre-Installed Applications• Clients• Devices & Components

Telecommunication

Success Stories:

Alvarion is the leading Wi-Max & Broadband wireless systems provider to service providers. Alvarion installed base includes around 300 deployments over 150 countries.

Comverse (Founded in 1982) , originally founded in Israel, is a global leading VAS vendor. Comverse was the pioneer in Voicemail, SMS and service delivery platforms, installed in more than 500 Service providers world-wide.

Jajah – The leading provider of VoIP service connecting two mobile or fixed “traditional” lines, without downloading any software

Software Sector

Facts & Figures:

No. of Exporters – 87030% - startups14% - growth revenue > $10 million

Export Total – $4.2 billion

Main Markets:

Main Advantages: Innovative Solutions

Deep Synergy with the Israeli advanced Hi-Tech industry

High presence of multinationals with R&D Centers

Highly skilled human resource

USA40%Europe

30%

Asia20%

Africa10%

Software Sector

Main Tech. Segments:

Enterprise Software• IT Management• CRM• Management Tools

IT Security• Enterprise Perimeter• Enterprise Assets• Enterprise Networks

Storage & Data Center• Storage Software• Data Center• System Area Networks

Cloud computingIT Services

Vertical Markets: Financial

Governmental

Retail

Utilities

Software Sector

Success Stories:

Check Point – first pioneered the industry with Firewall products , developed VPN technology. Today its a wide range of software products cover all the aspects of IT security.

Amdocs – founded in the 1970’s in the field of Yellow Pages communication, it was a telecommunication billing pioneer and is now a global leader in integrated telecommunication customer management software.

Retalix – since 1982, it has provided integrated enterprise-wide software solutions for the retail food industry worldwide, including supermarkets, convenience stores and restaurants.

New Media

Facts & Figures:

No. of Exporters – 1000Export Total – $2 billion

Main Markets: Europe; Asia; USA; Africa.

Main Advantages: Innovation and Creativity

High number of Start-ups

Numerous R&D Centers of foreign multinational companies

Vast knowhow experience in ICT technologies

New Media Export

Telcom

Services

Telcom

Devices

Software

Export

Main Segments:

Internet:• Applications & Services• E-Commerce & Marketing• Online Advertising• Entertainment & Video• Search • Social Networks

Broadcasting

Digital & Cable TV, IPTV, Satellite, OTT

Content Creation, Delivery & Management

Gaming

New Media

New Media

Success Stories:

ICQ (Mirabilis) – the first internet instant messaging, launched in 1996 and acquired by AOL for $407M. ICQ has opened the way for today’s social networking arena.

NDS – pioneered DRM & Conditional Access Systems which is used on most of News Corporation's digital satellite TV. NDS also supplies interactive TV applications, platforms, and development tools.

Orca Interactive – is a leading innovative provider of IPTV middleware and applications that power next-generation interactive TV. Revolutionizing the way people experience television content is based in Ra’anana, Israel, and wholly-owned byFrance Telecom SA.

Electronics

Facts & Figures:

No. of Exporters – 250Export Total – $5.9 billion

Main Markets:

Main Advantages: Innovative technology

Flexibility & Capacity to manufacture small quantities of complex nature

Important presence of multinationals

High skilled workforce for a relative low cost

Asia48%USA

26%

Eu-rope19%

Other7%

Electronics

Main Segments: Components: • Semiconductors design for: - the consumer electronic industry- the telecom industries

• Manufacturing for:- the consumer electronic industry- the telecom industries

Equipment for Electronics Industry:• Equipment for semiconductors, PV, FPD - flat panel display, PCB• Equipment for digital printing industries.

EMS – Electronic Manufacturing Services• Electronic and electro-mechanical subcontracting

Electronics

Success Stories:

M-Systems – developed the Disk on Key. Since 1989, the pioneer and patented of the personal storage solutions revolution, using USB devices with a proprietary flash memory developments.

HP Indigo Digital Press – The most advanced commercial and industrial digital printing presses, providing on demand customized printing solutions. Its main uses include general commercial printing, label, flexible packaging, folding carton and specialty printing.

Orbotech – is principally engaged in the design, development, manufacture, marketing and service of yield-enhancing and production solutions for specialized applications in the supply chain of the electronics industry. It is a world leader in PCB and Flat Panels inspection with a dominate position in the world market.

Life Science

No. of Exporters – 750Export Total – $1.37 billion

Main Markets:

Main Advantages: Advanced Scientific & Technology Transfer Organizations Spin-off of the Hi-Tech, Electronics & Defense sectors Strong entrepreneurial spirit & High skilled workforce Strong governmental R&D support Advanced HealthCare system

Facts & Figures

Medical Device & HealthCare IT: Eu-rope33%

Asia16%USA

44%

Other6%

Life Science

Main Segments: Medical Devices: • Diagnostics

• Drug delivery

• Disposable & Implantable

• Treatment: non invasive / minimally invasive / invasive

• Dental

HealthCare IT:• Management

• Decision support system

• Telemedicine Treatment.

“Israel is among the world leaders in the usage of Information Technology (IT) in Healthcare” (Gartner)

Life Science

Medical Device & HealthCare IT: Success Stories:

InSightec – developed the breakthrough MR-guided, focused ultrasound technology for non-invasive treatment of tumors using a combination of MRI and high- intensity focused ultrasound.

dbMotion – provides clinicians an access to the real-time, integrated clinical information. The health integrative and intelligent solution enables Healthcare Organizations and HIEs meaningfully integrate and leverage their information assets.

Deep Breeze – Vibration Response Imaging developed by Deep Breeze provides physicians with a dynamic functional image of the lung. Thousands of patients have been recorded by the VRIxp™ worldwide during clinical investigations without any single adverse event.

Life Science

No. of Exporters – 350Export Total – $4.63 billion

Main Markets:

Main Advantages: Scientific capabilities & Technological readiness

Extensive international R&D centers

Strong entrepreneurial spirit

High skilled workforce

Strong governmental R&D support

Facts & Figures

Biotechnology & Pharmaceuticals:

Asia: India, Japan, Korea, Taiwan, China.

Eu-rope17%

USA81%

Other3%

Life Science

Biotechnology: • Bioinformatics & Genomics • Drug Research & Discovery• Molecular Biology & Gene therapy• Tissue Engineering & Cell therapy• Diagnostics & Preventive kits• Antibody, Immunotherapy & Vaccines

Pharmaceuticals:• New Chemical Entity• Drug Discovery & Delivery • Natural Materials & Chemicals• Generic Drugs• Vaccines

Main Segments:

“Israel is 2nd in Europe in no. per capita of privet biotech companies’ products in pipeline” (MOITAL)

Life Science

Biotechnology & Pharmaceuticals: Success Stories: Gamida Cell – developed unique, breakthrough stem cell therapies used for treating patients with blood cancers, autoimmune illnesses and metabolic, and ischemic vascular diseases.

Kamada – engaged in development, production and marketing of specialty life-saving therapeutics, using a unique protein purification technology. Its product line consists of more than 10 injectable pharmaceutical products indicated for use in critical care illnesses and chronic home treatments.

Vaxil BioTherapeutics Ltd. develops novel, therapeutic vaccines for the treatment of cancer and key intracellular pathogens via specific manipulation and augmentation of the patient cellular immune responses.

Teva Pharmaceuticals, together with the Wiezmann Institute, developed Copaxone for Multiple Sclerosis treatment. This drug significantly improves the quality of life for MS sufferers.

Teva Pharmaceutical Industries, established in 1901 is today the world’s largest generic drug manufacturer and one of the 20 largest international pharmaceutical companies in the world!

Multinationals

Telecom

New Media

Soft Ware

Electronics

Medical Dev.

Bio & Pharma

Operate by Local Subsidiaries or Manage R&D Centers in Israel

Why Israel?

Israel is the 1st in Venture $/GDP

Israel is the 1st in No. of Engineers per Capita

Israel is the 1st in Listed Companies in NASDAQ (non-American)

Israel is the 1st in No of High-Tech Startups after the US

Israel is ranked 2nd in the quality of its higher education.

Israel is ranked 3rd in quality of scientific research and institutes.

Israel is ranked 4th in utility patents per million population.

Source: Economist Intelligence Unit 2009

IEICI

A Joint Venture Between the Israeli Government and the Private Sector, founded in 1958 as non-profit organization.

Who we are:

Out Mission: Promote Trade, Joint Ventures and Strategic Alliances between

overseas and Israeli Companies. Advance the integration of Israeli companies into the global market.

What we Can DO for You:

– strategic portal and direct link to Israeli Business. Business Matchmaking

– Government, the Diplomatic corps, & Academia. Global Networking

– rich source of information about Israeli Industry& whole range of Israeli Technologies by sectors.

Information Center

Contact DetailsIsrael Export & International Cooperation Institute29 Hamered St. Tel Aviv 68125, Israel.

Tel: +972 (3) 514 28 09Fax: +972 (3) 514 28 81

Email: miky@export.gov.il Web: www.export.gov.il

Michael AdmonDirector Hi-Tech Department