With a population of more than 8 million, a small land area, very limited natural resources and a thriving economy, Israel has a number of comparison points with Hong Kong. But where it really stands out is in its technology sector. Ester Perets-Burke, Head of the Economic and Trade Mission of the Consulate General of Israel in Hong Kong, visited the Chamber on 8 November to discuss the country’s tech-driven economy and booming start up scene, as well as giving members an overview of the history and culture.

Israel is a majority Jewish nation, but it also has a significant Muslim and Christian population. And it is culturally liberal – Tel Aviv is a well-known party destination and the city hosts a famous gay pride parade every year.

The country has enjoyed a steady GDP growth rate of around 3.4% for the past decade, and far punches above its weight in terms of globally successful technology companies. As Perets-Burke explained, the country’s small size has actually helped to drive its emergence as an innovation powerhouse. 

Tech companies in Chinese or American cities, for example, can depend on their huge domestic markets. “But Israel doesn't have a market,” she said.

This means that companies have to think global from the start. Israel does not have an auto industry, but this did not stop Mobileye from developing vision-safety technology for use in cars. In a particularly successful exit, the company was bought by Intel in 2017 for US$15 billion.

Another innovation to emerge in recent years is the Pillcam – a camera embedded in a tablet that is used to take images of the small intestine. This technology was originally developed by the Israeli Defence Force, the country’s army, which is a major developer of technology. 

The country is also a global leader in areas including drip irrigation, desalination and cybersecurity.
Some of Israel’s technology success can be attributed to government support, which has been a factor since the 1990s. But the country’s attitude and environment play an important role.

Israel is made up of people who have come from all over the world, and Perets-Burke described the population as being very “restless.” This translates into a creative and inventive culture, which also fosters an environment that encourages start-ups. The Israeli attitude is very open to trying something, failing, and trying again.

“Chutzpah” is another Israeli characteristic, and is very different to the type of attitude commonly found in Hong Kong and Asia generally. “There is something very direct about the way we communicate,” she explained.