Start-Up Nation - The Story of Israel's Economic Miracle Part 9

1. The information in this pa.s.sage is largely drawn from an interview with s.h.i.+mon Peres, president of Israel, December 2008; and interviews with Shai Aga.s.si, founder and CEO of Better Place, March 2008 and March 2009.

2. Shai Aga.s.si's blog, "Tom Friedman's Column," July 26, 2008, http://shaiaga.s.si.typepad.com/.

3. The information about Better Place is largely drawn from interviews with Shai Aga.s.si.

4. Daniel Roth, "Driven: Shai Aga.s.si's Audacious Plan to Put Electric Cars on the Road," Wired, Wired, vol. 16, no. 9 (August 18, 2008). vol. 16, no. 9 (August 18, 2008).

5. Haim Handwerker, "U.S. Entrepreneur Makes Aliyah Seeking 'Next Big Invention,' " Haaretz, Haaretz, August 28, 2008. August 28, 2008.

6. Israel Venture Capital Research Center, www.ivc-online.com.

7. Authors' calculations based on venture capital data from Dow Jones, VentureSource.

8. Dow Jones, VentureSource.

9. Donna Rosenthal, The Israelis: Ordinary People in an Extraordinary Land The Israelis: Ordinary People in an Extraordinary Land (New York: Free Press, 2005), p. 111. (New York: Free Press, 2005), p. 111.

10. Standard of living comparative data from www.gapminder.com.

11. Mark Twain, The Innocents Abroad: or, The New Pilgrims' Progress The Innocents Abroad: or, The New Pilgrims' Progress (Hartford: American Publis.h.i.+ng Company, 1870), p. 488. (Hartford: American Publis.h.i.+ng Company, 1870), p. 488.

12. Interviews with Gidi Grinstein, founder and president, Reut Inst.i.tute, May and August 2008.

13. Interview with Eric Schmidt, chairman and CEO, Google, June 2009; Maayan Cohen and Reuters, "Microsoft CEO, in Herzliya: Our Company Almost as Israeli as American," Haaretz Haaretz, May 21, 2008.

14. "The Global 2000," Forbes.com, March 29, 2007; http://www.forbes.com/lists/2007/18/biz_07forbes2000_The-Global-2000_Ind Name.html; and "Recent International Mergers and Acquisitions," http://www.investinisrael.gov.il/NR/exeres/F0FA7315-4D4A-4FD CA2FA-AE5BF294B3C2.htm; and Augusto Lopez-Claros and Irene Mia, "Israel: Factors in the Emergence of an ICT Powerhouse," http://www.investinisrael.gov.il/NR/rdonlyres/61BD95A0-898B-4F48-A795-5886 B1C4F08C/0/israelcompleteweb.pdf, p. 8. Among the top fifty software and technology companies of the two thousand largest public companies listed on Forbes, almost half have acquired Israeli companies or have opened an R&D center in Israel.

15. Paul Smith, senior vice president of Philips Medical, quoted in Invest in Israel, "Life Sciences in Israel: Inspiration, Invention, Innovation" (Israel Ministry of Industry, Trade and Labor, Investment Promotion Center, 2006).

16. Interviews with Gary Shainberg, vice president for technology and innovation, British Telecom, May and August 2008.

17. Interview with Jessica Sch.e.l.l, vice president, NBC Universal, Inc., April and June 2008.

18. David McWilliams, "We're All Israelis Now," April 25, 2004, http://www.davidmcwilliams.ie/2004/04/25/were-all-israelis-now.

19. Background interview with senior eBay executive.

20. Curtis R. Carlson, CEO of Stanford Research Inst.i.tute International, in "We Are All Innovators Now," Economist Intelligence Unit Economist Intelligence Unit, October 17, 2007.

21. John Kao, Innovation Nation: How America Is Losing Its Innovation Edge, Why It Matters and What We Can Do to Get It Back Innovation Nation: How America Is Losing Its Innovation Edge, Why It Matters and What We Can Do to Get It Back (New York: Free Press, 2007), p. 3. (New York: Free Press, 2007), p. 3.

22. Robert M. Solow, "Growth Theory and After," n.o.bel Prize lecture, December 8, 1987, http://n.o.belprize.org/n.o.bel_prizes/economics/laureates/1987/solow-lecture.html.

23. Interview with Carl Schramm, president of the Kauffman Foundation, March 2009.

24. Paths to Prosperity: Promoting Entrepreneurs.h.i.+p in the Twenty-first Century Paths to Prosperity: Promoting Entrepreneurs.h.i.+p in the Twenty-first Century, Monitor Company, January 2009.

25. Michael Mandel, "Can America Invent Its Way Back?" BusinessWeek BusinessWeek, September 11, 2008.

CHAPTER 1 1. Persistence.

1. Information in the following section is taken from interviews with Scott Thompson, president, PayPal, October 2008 and January 2009; Meg Whitman, former president and CEO of eBay, September 2008; and Eli Barkat, chairman and cofounder, BRM Group, and seed investor in Fraud Sciences, January 2009.

2. Leo Rosten, The Joys of Yiddish The Joys of Yiddish (New York: McGraw-Hill, 1968), p. 5. (New York: McGraw-Hill, 1968), p. 5.

3. Loren Gary, "The Right Kind of Failure," Harvard Management Update Harvard Management Update, January 1, 2002.

4. Background interview with Israeli Air Force trainer, May 2008.

5. Paul Gompers, Anna Kovner, Josh Lerner, and David S. Scharfstein, "Skill vs. Luck in Entrepreneurs.h.i.+p and Venture Capital: Evidence from Serial Entrepreneurs," working paper 12592, National Bureau of Economic Research, October 2006, http://imio.haas.berkley.edu/williamsonseminar/scharfstein041207.pdf.

6. Eric Weiner, The Geography of Bliss: One Grump's Search for the Happiest Places in the World The Geography of Bliss: One Grump's Search for the Happiest Places in the World (New York: Twelve, 2008), p. 163. (New York: Twelve, 2008), p. 163.

7. Ian King, "How Israel Saved Intel," Seattle Times Seattle Times, April 9, 2007.

8. Shahar Zadok, "Intel Dedicates Fab 28 in Kiryat Gat," Globes Online Globes Online, July 1, 2008.

9. Michael S. Malone, Infinite Loop: How Apple, the World's Most Insanely Great Computer Company, Went Insane Infinite Loop: How Apple, the World's Most Insanely Great Computer Company, Went Insane (New York: Doubleday Business, 1999); quoted in "Inside Intel: The Art of Andy Grove," (New York: Doubleday Business, 1999); quoted in "Inside Intel: The Art of Andy Grove," Harvard Business School Bulletin Harvard Business School Bulletin, December 2006.

10. David Perlmutter in "Intel Beyond 2003: Looking for Its Third Act," by Robert A. Burgelman and Philip Meza, Stanford Graduate School of Business, 2003.

11. Interview with Shmuel Eden, vice president and general manager, Mobile Platforms Group, Intel, November 2008.

12. Ian King, "Intel's Israelis Make Chip to Rescue Company from Profit Plunge," Bloomberg.com, March 28, 2007.

13. Eliot A. Cohen, Supreme Command: Soldiers, Statesmen, and Leaders.h.i.+p in Wartime Supreme Command: Soldiers, Statesmen, and Leaders.h.i.+p in Wartime (New York: Free Press, 2002), p. 144. (New York: Free Press, 2002), p. 144.

14. Dov Frohman and 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), p. 7. (San Francisco: Jossey-Ba.s.s, 2008), p. 7.

15. This pa.s.sage is based on Ian King, "Intel's Israelis Make Chip to Rescue Company from Profit Plunge," Bloomberg.com, March 28, 2007.

16. "Energy Savings: The Right Hand Turn," video presentation by John Skinner, Intel Web site, http://video.intel.com/?fr_story=542de663c9824ce580001de5fba31591cd5b5cf3&rf=sitemap.

17. Interview with Shmuel Eden.

CHAPTER 2. Battlefield Entrepreneurs 2. Battlefield Entrepreneurs Epigraph: Interview with Eric Schmidt.

1. Interview with Abraham Rabinovich, historian, December 2008.

2. Azriel Lorber, Misguided Weapons: Technological Failure and Surprise on the Battlefield Misguided Weapons: Technological Failure and Surprise on the Battlefield (Dulles, Va.: Potomac Books, 2002), pp. 7680. (Dulles, Va.: Potomac Books, 2002), pp. 7680.

3. Interview with Michael Oren, senior fellow, Shalem Center, May 2008.

4. Interview with Edward Luttwak, senior a.s.sociate, Center for Strategic and International Studies, December 2008.

5. This section is based on an interview with Major Gilad Farhi, commander, Kfir infantry unit, IDF, November 2008.

6. Interview with Brigadier General Rami Ben-Ephraim, head of Personnel Division, Israeli Air Force, November 2008. The name of the pilot is fict.i.tious since the IDF does not allow publication of names of most pilots.

7. Interview with Major General (res.) Aharon Zeevi-Farkash, former head of 8200, IDF, May 2008.

8. Interview with Frederick W. Kagan, military historian and resident scholar, American Enterprise Inst.i.tute for Public Policy Research (AEI), December 2009.

9. Interview with Nathan Ron, attorney and IDF Lieutenant Colonel (res.), Ron-Festinger Law Offices, December 2008.

10. Interview with Amos Goren, venture partner, Apax, January 2009.

11. Amos Oz, speech at the Israeli Presidential Conference, Jerusalem, May 14, 2008.

12. Interview with Michael Oren.

13. Interview with Lieutenant General (res.) Moshe Yaalon, Likud member of Knesset and former chief of staff, IDF, May 2008.

CHAPTER 3. 3. The People of the Book The People of the Book.

1. Information in this section is from Patrick Symmes, "The Book," Outside Outside, August 2005; and an interview with Darya Maoz, anthropologist, June 2009; and an interview with Dorit Moralli, owner, El Lobo restaurant and guesthouse in La Paz, Bolivia, March 2009.

2. Aaron J. Sarna, Boycott and Blacklist: A History of Arab Economic Warfare Against Israel Boycott and Blacklist: A History of Arab Economic Warfare Against Israel (Totowa, N.J.: Rowman & Littlefield, 1986), appendix. (Totowa, N.J.: Rowman & Littlefield, 1986), appendix.

3. Chaim Fershtman and Neil Gandal, "The Effect of the Arab Boycott on Israel: The Automobile Market," Rand Journal of Economics Rand Journal of Economics, vol. 29, no. 1 (Spring 1998), p. 5.

4. Christopher Joyner, quoted in Aaron J. Sarna, Boycott and Blacklist: A History of Arab Economic Warfare Against Israel Boycott and Blacklist: A History of Arab Economic Warfare Against Israel, p. xiv.

5. Sarna, Boycott and Blacklist Boycott and Blacklist, pp. 5657.

6. Interview with Orna Berry, venture partner, Gemini Israel Funds, January 2009.

7. Interview with Gil Kerbs, venture capitalist and contributor to Forbes Forbes, January 2009.

8. Interview with Edward Luttwak.

9. Interview with Alex Vieux, CEO of Red Herring, May 2009.

CHAPTER 4. 4. Harvard, Princeton, and Yale Harvard, Princeton, and Yale 1. Interview with David Amir (fict.i.tious name), August 2008.

2. Interview with Gil Kerbs, venture capitalist, January 2009.

3. Interview with Gary Shainberg, vice president for technology and innovation, British Telecom, August 2008.

4. IMD World Compet.i.tiveness Yearbook IMD World Compet.i.tiveness Yearbook (Lausanne, Switzerland: IMD, 2005). (Lausanne, Switzerland: IMD, 2005).

5. Interview with Mark Gerson, executive chairman, Gerson Lehrman Group, January 2009.

6. Interview with Tal Keinan, cofounder KCPS, May 2008.

7. Interview with Yossi Vardi, angel investor, May 2008.

8. Background interview with U.S. Army recruiter, January 2009.

9. David Lipsky, Absolutely American: Four Years at West Point Absolutely American: Four Years at West Point; and interview with Lipsky in March 2009.

10. Information from this pa.s.sage is largely based on an interview with Colonel (res.) John Lowry, general manager at Harley-Davidson Motor Company, November 2008.

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

12. This experience prompted the army leaders.h.i.+p to pursue a proactive public relations campaign to bridge the civilian-military divide, which included reaching out to Rolling Stone Rolling Stone and offering access to a West Point cla.s.s. This effort culminated in David Lipsky's book and offering access to a West Point cla.s.s. This effort culminated in David Lipsky's book Absolutely American Absolutely American. This pa.s.sage is also based on author interview with General John Abizaid, May 2009.

13. Interview with Tom Brokaw, author, The Greatest Generation The Greatest Generation, April 2009.

14. Interview with Al Chase, corporate executive recruiter and founder, White Rhino Partners, February 2009.

15. Interview with Nathaniel Fick, author of One Bullet Away One Bullet Away, March 2008.

16. Interview with Brian Tice, captain (res.), U.S. Marine Corps, February 2009.

CHAPTER 5. 5. Where Order Meets Chaos Where Order Meets Chaos 1. CIA, "Field Listing-Military Service Age and Obligation,"The 2008 World Factbook.

2. Mindef Singapore, "Ministerial Statement on National Service Defaulters by Minister for Defence Teo Chee Hean," January 16, 2006.