Start-Up Nation - The Story of Israel's Economic Miracle Part 10

3. Amnon Barzilai, "A Deep, Dark, Secret Love Affair," http://www.israelforum.com/board/archive/index.php/t-6321.html.

4. Mindef Singapore, "Speech by Prime Minister Goh Chok Tong at the 35 Years of National Service Commemoration Dinner," September 7, 2007.

5. BBC News, "Singapore Elder Statesman," July 5, 2000, http://news.bbc.co.uk/2/hi/programmes/from_our_own_correspondent/820234 .stm; retrieved November 2008.

6. Quoted in James Flanigan, "Israeli Companies Seek Global Profile," New York Times New York Times, May 20, 2009.

7. Interview with Laurent Haug, founder and CEO, Lift Conference, May 2009.

8. Interview with Tal Riesenfeld, founder and vice president of marketing, EyeView, December 2008.

9. The information from this pa.s.sage is largely taken from Michael A. Roberto, Amy C. Edmondson, and Richard M. J. Bohmer, "Columbia's Final Mission," Harvard Business School Case Study, 2006; Charles Murray and Catherine Bly c.o.x, Apollo Apollo (Birkittsville, Md.: South Mountain Books, 2004); Jim Lovell and Jeffrey Kluger, (Birkittsville, Md.: South Mountain Books, 2004); Jim Lovell and Jeffrey Kluger, Apollo 13 Apollo 13 (New York: Mariner Books, 2006); and Gene Kranz, (New York: Mariner Books, 2006); and Gene Kranz, Failure Is Not an Option: Mission Control from Mercury to Apollo 13 and Beyond Failure Is Not an Option: Mission Control from Mercury to Apollo 13 and Beyond (New York: Berkley, 2009). (New York: Berkley, 2009).

10. Michael Useem, The Leaders.h.i.+p Moment: Nine True Stories of Triumph and Disaster and Their Lessons for Us All The Leaders.h.i.+p Moment: Nine True Stories of Triumph and Disaster and Their Lessons for Us All (New York: Three Rivers, 1998), p. 81. (New York: Three Rivers, 1998), p. 81.

11. Roberta Wohlstetter quoted in Michael A. Roberto, Richard M. J. Bohmer, and Amy C. Edmondson, "Facing Ambiguous Threats," Harvard Business Review Harvard Business Review, November 2006.

12. Interview with Yuval Dotan (fict.i.tious name), IAF fighter pilot, May 2008.

13. Interview with Edward Luttwak.

14. Interview with Eliot A. Cohen, director of the Strategic Studies Program, Paul H. Nitze School of Advanced International Studies, Johns Hopkins University, January 2009.

15. Lieutenant Colonel Paul Yingling quoted in Thomas E. Ricks, "A Brave Lieutenant Colonel Speaks Out: Why Most of Our Generals Are Dinosaurs," Foreign Policy Foreign Policy, January 1, 2009, http://ricks.foreignpolicy.com/posts/2009/01/22/a_brave_colonel_speaks_out_why_most_of_our_ generals_are_dinosaurs.

16. Lieutenant Colonel Paul Yingling (United States Army), "A Failure in Generals.h.i.+p," Armed Forces Journal Armed Forces Journal, 2007, http://www.armed forcesjournal.com/2007/05/2635198.

17. Interview with Eliot Cohen.

18. Giora Eiland, "The IDF: Addressing the Failures of the Second Lebanon War," in The Middle East Strategic Balance 20072008, edited by Mark A. h.e.l.ler (Tel Aviv: Inst.i.tute for National Security Studies, 2008).

19. Quote identified from interview with Carl Schramm, March 2009.

20. William J. Baumol, Robert E. Litan, and Carl J. Schramm, Good Capitalism, Bad Capitalism, and the Economics of Growth and Prosperity Good Capitalism, Bad Capitalism, and the Economics of Growth and Prosperity (New Haven: Yale University Press, 2007); and Carl Schramm, "Economic Fluidity: A Crucial Dimension of Economic Freedom," in 2008 Index of Economic Freedom, edited by Kim R. Holmes, Edwin J. Feulner, and Mary Anastasia O'Grady (Was.h.i.+ngton, D.C.: Heritage Foundation, 2008), p. 17. (New Haven: Yale University Press, 2007); and Carl Schramm, "Economic Fluidity: A Crucial Dimension of Economic Freedom," in 2008 Index of Economic Freedom, edited by Kim R. Holmes, Edwin J. Feulner, and Mary Anastasia O'Grady (Was.h.i.+ngton, D.C.: Heritage Foundation, 2008), p. 17.

CHAPTER 6. 6. An Industrial Policy That Worked An Industrial Policy That Worked 1. Central Bureau of Statistics (Israel), "Gross Domestic Product and Uses of Resources, in the Years 19501995," in Statistical Abstract of Israel 2008 Statistical Abstract of Israel 2008, no. 59, table 14.1, http://www.cbs.gov.il/reader/shnaton/templ_shnaton_e .html?num_tab=st14_01x&CYear=2008.

2. Howard M. Sacher, A History of Israel: From the Rise of Zionism to Our Time A History of Israel: From the Rise of Zionism to Our Time, 2nd ed. (New York: Knopf, 1996), p. 30.

3. "Yishuv," in Encyclopedia Judaica Encyclopedia Judaica, 2nd ed., vol. 10, p. 489.

4. Quoted in Time/CBS News, People of the Century: One Hundred Men and Women Who Shaped the Last Hundred Years People of the Century: One Hundred Men and Women Who Shaped the Last Hundred Years (New York: Simon & Schuster, 1999), p. 128. (New York: Simon & Schuster, 1999), p. 128.

5. Leon Wieseltier, "Brothers and Keepers: Black Jews and the Meaning of Zionism," New Republic New Republic, February 11, 1985.

6. Quoted in Meirav Arlosoroff, "Once Politicians Died Poor," Haaretz, June 8, 2008.

7. Daniel Gavron, The Kibbutz: Awakening from Utopia The Kibbutz: Awakening from Utopia (Lanham, Md.: Rowman & Littlefield, 2000), p 1. (Lanham, Md.: Rowman & Littlefield, 2000), p 1.

8. Bruno Bettelheim, The Children of the Dream: Communal Child-Rearing and American Education The Children of the Dream: Communal Child-Rearing and American Education (New York: Simon & Schuster, 2001), pp. 1517. (New York: Simon & Schuster, 2001), pp. 1517.

9. Alon Tal, Pollution in a Promised Land: An Environmental History of Israel Pollution in a Promised Land: An Environmental History of Israel (Berkeley: University of California Press, 2002), p. 219. (Berkeley: University of California Press, 2002), p. 219.

10. Alon Tal, "National Report of Israel, Years 20032005, to the United Nations Convention to Combat Desertification (UNCCD)," July 2006, http://www.unccd.int/cop/reports/otheraffected/national/2006/israel-eng.pdf.

11. Dina Kraft, "From Far Beneath the Israeli Desert, Water Sustains a Fertile Enterprise," New York Times New York Times, January 2, 2007.

12. Information for this pa.s.sage comes from Web sites of the Weizmann Inst.i.tute, Yatir Forest Research Group, http://www.weizman.ac.il/ESER/People/Yakir/YATIR/Yatir.htm, and the Keren Kayemeth LeIsrael/Jewish National Fund, http://www.kkl.org.il/kkl/english/main_subject/globalwarming/israeli%20research%20has%20worldwide%20implications.x.

13. Reut Inst.i.tute, "Generating a Socio-economic Leapfrog," February 14, 2008, http://reut-inst.i.tute.org/data/uploads/PDFVer/20080218%20-%20%20Hausman%27s%20main%20issues-%20 English.pdf.

14. Reut Inst.i.tute, "Israel 15 Vision," http://www.reut-inst.i.tute.org/event.aspx?EventId=6.

15. Information in this pa.s.sage is from Yakir Plessner, The Political Economy of Israel: From Ideology to Stagnation The Political Economy of Israel: From Ideology to Stagnation (Albany: State University of New York Press, 1994), pp. 1131. (Albany: State University of New York Press, 1994), pp. 1131.

16. Ibid., p. 288.

17. David Rosenberg, "Inflation-the Rise and Fall," Ministry of Foreign Affairs Web site, January 2001, http://www.mfa.gov.il.

18. CNNMoney.com, "Best Places to Do Business in the Wired World," http://money.cnn.com/galleries/2007/biz2/0708/gallery.roadwarriorsspecial.biz2/11.html.

19. Orna Yefet, "McDonalds," Yediot Ahronot Yediot Ahronot, October 29, 2006.

CHAPTER 7. 7. Immigration: The Google Guys Challenge Immigration: The Google Guys Challenge 1. Interview with Shlomo Molla, member of Knesset, Kadima Party, March 2009.

2. This covert rescue effort was aided by the Central Intelligence Agency, local mercenaries, and even Sudanese security officials. It was kept a secret largely for political reasons-in order to s.h.i.+eld Sudan from any blowback from the Arab countries that would criticize the government for ostensibly aiding Israel. When the story of the airlift broke prematurely, the Arab countries pressured Sudan to stop the airlift, which it did. This left one thousand Ethiopian Jews stranded until U.S.-led Operation Joshua evacuated them to Israel a few months later.

3. Leon Wieseltier, "Brothers and Keepers: Black Jews and the Meaning of Zionism."

4. Joel Brinkley, "Ethiopian Jews and Israelis Exult as Airlift Is Completed," New York Times New York Times, May 26, 1991.

5. David A. Vise and Mark Malseed, The Google Story The Google Story (New York: Delacorte, 2005), p. 15. (New York: Delacorte, 2005), p. 15.

6. Interview with Natan Sharansky, chairman and distinguished fellow, Adelson Inst.i.tute for Strategic Studies, Shalem Center, and founder of Yisrael B'Aliya, May 2008.

7. Interview with David McWilliams, Irish economist and author of The Pope's Children The Pope's Children, March 2009.

8. Interview with Erel Margalit, founder of Jerusalem Venture Partners (JVP), May 2008.

9. Interview with Reuven Aga.s.si, December 2008.

10. While the new law was already rigid, the U.S. State Department directed consular officers overseas to become even stricter in their application of the "public charge" provision of immigration law. A public charge is someone unable to support himself or his family. At the beginning of the Great Depression, in response to a public outcry for tougher immigration laws, overseas consuls were told to expand the interpretation of the "public charge clause" to prohibit admission to immigrants who just might become public charges. The designation became a completely speculative process.

11. David Wyman, Paper Walls: America and the Refugee Crisis, 19381941 Paper Walls: America and the Refugee Crisis, 19381941 (New York: Pantheon, 1985), p. x. (New York: Pantheon, 1985), p. x.

12. Some scholars now believe that the lack of a safe haven for Jews seeking to leave Germany and other soon-to-be-occupied n.a.z.i territories became an important factor in n.a.z.i plans to exterminate the Jewish population of Europe. "The overall picture clearly shows that the original [n.a.z.i] policy was to force the Jews to leave," says David Wyman. "The s.h.i.+ft to extermination came only after the emigration method had failed, a failure in large part due to lack of countries open to refugees." From Wyman, Paper Walls: America and the Refugee Crisis, 19381941 Paper Walls: America and the Refugee Crisis, 19381941 (New York: Pantheon, 1985), p. 35. (New York: Pantheon, 1985), p. 35.

13. In 1939, the British government created a ceiling of 10,000 Jewish immigrants per year into Palestine, with an additional allotment of 25,000 possible entries. It is true that in 1945, President Harry Truman requested a U.S. government investigation of treatment of Jewish displaced persons, many of whom were in facilities overseen by the U.S. Army. "The resulting report chronicled shocking mistreatment of the already abused refugees and recommended that the gates of Palestine be opened wide for resettlement," writes Leonard Dinnerstein in America and the Survivors of the Holocaust America and the Survivors of the Holocaust (New York: Columbia University Press, 1986). After several unsuccessful attempts to persuade Great Britain to admit the Jews into Palestine, Truman asked Congress to pa.s.s a law to bring a number of these refugees to the States. (New York: Columbia University Press, 1986). After several unsuccessful attempts to persuade Great Britain to admit the Jews into Palestine, Truman asked Congress to pa.s.s a law to bring a number of these refugees to the States.

While Truman's bill became law in 1948, the year of Israel's founding, a group of legislators, led by Nevada senator Pat McCarran, manipulated the drafting of the bill's language so that it actually had the effect of discriminating against Eastern European Jews. Ultimately, historian Leonard Dinnerstein estimates, only about 16 percent of those issued visas as displaced persons between July 1948 and June 1952 were Jewish. "Thus McCarran's numerous tricks and ploys were effective," notes Dinnerstein. "Jews who might otherwise have chosen the United States as their place of resettlement went to Israel."

14. The doc.u.ment can be found at http://www.jewishvirtuallibrary .org/jsource/History/Dec_of_Indep.html.

15. Interview with David McWilliams, Irish economist and author of The Pope's Children The Pope's Children, March 2009.

16. This is not to suggest that there are not ethnic tensions among this very diverse country. Deep friction erupted between European Holocaust refugees and Jews from the Arab world as far back as the state's founding. Sammy Smooha, today a world-renowned sociologist at the University of Haifa, was, like Reuven Aga.s.si, an Iraqi Jewish immigrant who spent part of his childhood in a transit tent. "We were told not to speak Arabic, but we didn't know Hebrew. Everything was strange. My father went from being a railroad official in Baghdad to an unskilled n.o.body. We suffered a terrible loss of ident.i.ty. Looking back, I'd call it cultural repression. Behind their lofty ideals of 'one people,' they [the Jews of European origin] were acting superior, paternalistic." Quoted in Donna Rosenthal, The Israelis: Ordinary People in an Extraordinary Land The Israelis: Ordinary People in an Extraordinary Land (New York: Free Press, 2005), p. 116. (New York: Free Press, 2005), p. 116.

CHAPTER 8 8. The Diaspora: Stealing Airplanes.

1. Fred Vogelstein, "The Cisco Kid Rides Again," Fortune, July 26, 2004; http://money.cnn.com/magazines/fortune/fortune_archive/2004/07/26/377145/index.htm; and interview with Michael Laor, founder of Cisco Systems Development Center in Israel, February 2009.

2. Marguerite Reardon, "Cisco Router Makes Guinness World Records," July 1, 2004, CNET News CNET News, http://news.cnet.com/Cisco-router -makes-Guinness-World-Records/2100-1033_3-5254291.html?tag=nefd .top; retrieved January 2009.

3. Vogelstein, "The Cisco Kid Rides Again."

4. Marguerite Reardon, "Cisco Sees Momentum in Sales of Key Router," TechRepublic TechRepublic, December 6, 2004, http://articles.techrepublic .com.com/5100-22_11-5479086.html; and Cisco, press release, "Growth of Video Service Delivery Drives Sales of Cisco CRS-1, the World's Most Powerful Routing Platform, to Double in Nine Months," April 1, 2008, http://newsroom.cisco.com/dlls/2008/prod_040108c.html.

5. Interview with Yoav Samet, Cisco's corporate business development manager in Israel, Central/Eastern Europe, and Russia/CIS, January 2009.

6. Interview with Yoav Samet.

7. Richard Devane, "The Dynamics of Diaspora Networks: Lessons of Experience," in Diaspora Networks and the International Migration Skills Diaspora Networks and the International Migration Skills, edited by Yevgeny Kuznetsov (Was.h.i.+ngton, D.C.: World Bank Publications, 2006), pp. 5967. The quote is from p. 60.

8. Jenny Johnston, "The New Argonauts: An Interview with AnnaLee Saxenian," July 2006, GBN Global Business Network, http://thenewar gonauts.com/GBNinterview.pdf?aid=37652.

9. The information in this pa.s.sage is drawn from Anthony David, The Sky Is the Limit: Al Schwimmer, the Founder of the Israeli Aircraft Industry The Sky Is the Limit: Al Schwimmer, the Founder of the Israeli Aircraft Industry (Tel Aviv: Schocken Books, 2008; in Hebrew); and the interview with s.h.i.+mon Peres. Regarding the accounts of Peres and Schwimmer flying over the Arctic tundra and Schwimmer's meeting with Ben-Gurion in the United States, see also s.h.i.+mon Peres, (Tel Aviv: Schocken Books, 2008; in Hebrew); and the interview with s.h.i.+mon Peres. Regarding the accounts of Peres and Schwimmer flying over the Arctic tundra and Schwimmer's meeting with Ben-Gurion in the United States, see also s.h.i.+mon Peres, David's Sling David's Sling (New York: Random House, 1970). (New York: Random House, 1970).

CHAPTER 9 9. The Buffett Test.

1. Interview with Yoelle Maarek, former director, Google's R & D Center in Haifa, Israel, January 2009.

2. Joel Leyden, "Microsoft Bill Gates Takes Google, Terrorism War to Israel," Israel News Agency, 2006, http://www.israelnewsagency.com/microsoftgoogleisraelseo581030.html; retrieved November 2008.

3. Quote from a transcript of a doc.u.mentary film interview conducted by the American Israel Public Affairs Committee (AIPAC) in 2007, provided to the authors.

4. Dan Senor is an investor in Vringo.

5. Interview with Alice Schroeder, author of The s...o...b..ll The s...o...b..ll, 2008.

6. Uzi Rubin, "Hizballah's Rocket Campaign Against Northern Israel: A Preliminary Report," Jerusalem Issue Brief, vol. 6, no. 10 (August 31, 2006), http://www.jcpa.org/brief/brief006-10.htm.

7. Interview with Eitan Wertheimer, chairman of the board of Iscar, January 2009.

8. Dov Frohman with Robert Howard, Leaders.h.i.+p the Hard Way: Why Leaders.h.i.+p Can't Be Taught-and How You Can Learn It Anyway Leaders.h.i.+p the Hard Way: Why Leaders.h.i.+p Can't Be Taught-and How You Can Learn It Anyway (San Francisco: Jossey-Ba.s.s, 2008), pp. 116. All quotes from Frohman in this pa.s.sage come from this book. (San Francisco: Jossey-Ba.s.s, 2008), pp. 116. All quotes from Frohman in this pa.s.sage come from this book.

9. Interviews in this pa.s.sage with senior Intel executive were on background, December 2008.

10. Interview with Eitan Wertheimer.

CHAPTER 10 10. Yozma: The Match.

1. Jennifer Friedlin, "Woman on a Mission," Jerusalem Post Jerusalem Post, April 20, 1997.

2. Interview with Orna Berry, partner in Gemini Israel Funds, and chairperson of several Gemini portfolio companies, January 2009.

3. Interview with Jon Medved, CEO and board member, Vringo, May 2008.

4. Interview with Yigal Erlich, founder, chairman, and managing partner of the Yozma Group, May 2008.

5. Gil Avnimelech and Morris Tuebal, "Venture Capital Policy in Israel: A Comparative a.n.a.lysis and Lessons for Other Countries," research paper, Hebrew University School of Business Administration and School of Economics, October 2002, p. 17.

6. The information about BIRD's founding is from an interview with Ed Mlavsky, chairman and founding partner of Gemini Israel Funds, December 2008.

7. BIRD (Israel-U.S. Binational Industrial Research and Development Foundation), "BIRD Foundation to Invest $9 Million in 12 Advanced Development Projects in Life Sciences, Energy, Communications, Software and Nanotechnology," http://www.birdf.com/_Uploads/255BOG08PREng.pdf.

8. Dan Breznitz, Innovation of the State Innovation of the State (New Haven: Yale University Press, 2007), p. 60. (New Haven: Yale University Press, 2007), p. 60.

9. Ed Mlavsky in a PowerPoint slide presentation to Wharton MBA students, 2008.

10. Interview with Jon Medved.

11. Interview with Yigal Erlich.