Samuel Neaman Institute - Technion, Israel Institute of Technology, Haifa 32000, Israel Samuel Neaman Institute - Technion, Israel Institute of Technology, Haifa 32000, Israel

INNOVATION AND ENTREPRENEURSHIP BASED ECONOMY:

Lessons from Israel for Vietnam

Prof. Shlomo MaitalTechnion-Israel Institute of Technology

Dr. Tran Luong SonChair VietSoftware

Ministry of Planning & Investment

Why Vietnam and Israel are alike!

Ancient civilizations, once independent, lost it, regained it with a hard fight

Hard-working determined stubborn people

Bright creative young people

Eager to grow: Growth Mindset

Israel 1948 600,000 people$1,500 GDP pcap

2014 8,13m people$31,500 pcap

Samuel Neaman Institute - Technion, Israel Institute of Technology, Haifa 32000, Israel Samuel Neaman Institute - Technion, Israel Institute of Technology, Haifa 32000, Israel

Zoom Out (the World Economy)

Zoom In (Vietnam)

What Can Or Does Vietnam Do/MakeBetter Than AnyoneElse in the World?

68th in Global Competitiveness75th in “macroeconomic situation”85th public institutions104th property rights protection109th perceived corruption81st energy, transportation infrastructure49th labor market34th market size99th Technological readiness118th speed in adopting latest technology106th degree of business sophistication

A country is a business.

Vietnam & Israel are businesses.

What is your strategy? What is your unique value proposition?

What does each Vietnamese need to do to implement the strategy?

Factor Driven

Efficiency Driven

Innovation Driven

Vietnam: “Jump the Queue

Do AllThree …at once!

We CAN Work together!

* agrotech * cleantech * biotech

* IT/software * defense

Foster world-class elite science and technology universities

Technion, Israel Institute of Technology was established in 1912 (before Israel became an independent nation). A small university, but Technion had three Nobel Prize winners, and 4 other Nobel laureates have been associated with it. Technion has created a world-class high-tech industry through its graduates. One of every 4 graduates of Technion start their own business.

Samuel Neaman Institute - Technion, Israel Institute of Technology, Haifa 32000, Israel

Technion’s Graduates

Technion's Contribution to the Israeli Economy

Since its establishment, over 70,000 Technion graduates entered the labor market in Israel and abroad; 60,000 are still active

Cumulative Number of Graduates from Technion 1911-2011

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Incredible Facts

Samuel Neaman Institute - Technion, Israel Institute of Technology, Haifa 32000, Israel

•23% or 13.5 thousand graduates founded at least one new company (startup). • Among women it was found that about 15% of them (about one in seven) established a new company during their career.

Technion's Contribution to the Israeli Economy

Graduates' Contribution to Technological Entrepreneurship and Innovativeness in the Economy

Incredible Facts

Strategy for government intervention (Socialist Republic of Vietnam)

US software companies dominate the world market, in part because of the large investments of the defense industry in universities and infrastructure. Internet was born from the US Department of Defense's ARPANET at UCLA. Israeli investment boom began when the government established Yozma, specialized state venture capital for technology.

Samuel Neaman Institute - Technion, Israel Institute of Technology, Haifa 32000, Israel Samuel Neaman Institute - Technion, Israel Institute of Technology, Haifa 32000, Israel

GlobalizationNov. 9 1989 “Fall of the Wall”

Implications for Vietnam

“buy/sell anything/anywhere/anytimeto anyone”

In today’s globalized world

(“buy/sell anything, anywhere, to anyone, any time”)

what is “Socialism?”

Wealthy: Earn 8%, wealth doubles in 9 yrs

Middle class Little or no wealth.Poor

Make entrepreneurship viral

In Israel in 1981, Zisapel brothers founded RAD Data Communications. Chairman Yehuda Zisapel initiated a model that engineers, who left RAD to open their own company, receive advice and financial support from RAD. The result was that 128 companies were born, forming a combined 15,000 employee cluster with billions of dollars in exports for Israel.

Samuel Neaman Institute - Technion, Israel Institute of Technology, Haifa 32000, Israel

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128 startups from 1 startup (1981)

RAD

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RAD Group Today: $1.4 b. Revenues 3,500 workers

No holding company. Each company in the group operates independently, under a “common strategic umbrella”.

RAD is very big… but ‘feels very small’.

Whenever a market opportunity is identified, a new business is created. This occurred 128 times!

Samuel Neaman Institute - Technion, Israel Institute of Technology, Haifa 32000, Israel

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3n59,000

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Doing business with neighboring countries

Vietnam should pursue a strategy like Singapore. When Common Market for East Asia (AEC) gets launched in 2015 Vietnamese companies may have great business opportunities in the region, or may lose positions even at home country, depending their competitiveness. Vietnam has Opportunities in the EU, as your Prime Minister has recognized.

Geopolitics is crucial – make friends to build your markets. Be relevant. Be constructive.

Quality and effectiveness of foreign investment are important Few poor countries can meet their own needs of finance. Attracting external investment is necessary. However type of investment is no less important. Woo the FDI / foreign investorVietnam should pay attention to the quality and effectiveness of FDI projects to improve its competitiveness. Do not just look at GDP, or depend on factors such as availability of cheap labor, land, natural resources and conditions... Israel: $76 b. in FDI, 4% of GDP in 2013

Maximize value-added, leaning toward innovation and high technology

Israel has become one of the leading countries in high technology products with more market dominance, especially in information technology, defense industry. Proximity to the market is a major advantage of producing goods. Vietnam needs to maximize business opportunities and value added in the domestic market. It is not acceptable for Vietnam to lose competitiveness especially in agriculture and tourism. However, it is even more important to bring high technology (such as biotechnology, information technology) to production and business activities, together with the local advantages.

ISRAEL

GDP per capita PPP ($) = -15 + 0.572 Competitiveness, R2adj = 0.596

(9.0)

Samuel Neaman Institute - Technion, Israel Institute of Technology, Haifa 32000, Israel

AUT

DNK

FIN

FRA

DEU

IRE

NLD

SVK

SWE

TUR

UK

USA

ISR

R2 = 0.89

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0 2000 4000 6000 8000

Expenditure per student on R&D (in PPP $)

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Increasing Israel’s R&D spending per student to the level of Sweden will cost an added $375 m. yearly – but will raise GDP by $600 m. yearly!

Impact of R&D expenditure per student on per capita GDP

Higher Education Investments and Economic

Performance

Incredible Facts

Celebrate Failure!

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Samuel Neaman Institute - Technion, Israel Institute of Technology, Haifa 32000, Israel

Technion Nation:Technion’s Contribution to

Israel and the World

Amazing stories

Dr. Amit Goffer

Wheelchair to Marathon

Bible:

“Come, let us reason together”.

- Isaiah

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