STATE OF ISRAEL Ministry of Industry Trade and Labor | Foreign Trade Administration | Investment Promotion Center 1
WaterThe Israeli Experience
The National Water Program
Country ID
Maps: Wikipedia
Main Cities: Jerusalem, Tel-Aviv, Haifa, Be’er Sheva
GDP: $161.8 Billion (2007)
Population: ~ 7.0 millions
Area: 22,000 sqkm
Main Economic Indicators
21,00019,90018,70018,000GDP/Capita (Current Prices)
70.6530,46429,04427,289GDP/Capita (based on purchasing power parity)
70.6562.657.952.8Exports (goods & services, B$)
73.761.757.552.3Imports ($ billion)
3.4-0.12.41.2Inflation (CPI, %)
7.58.4910.4Unemployment (%)
5.35.25.35.2GDP Growth Rate (%)
161.8
2007
142131.2123.6GDP (current prices, B$)
200620052004
Sources: Bank of Israel, Ministry of Finance, International Monetary Fund
Israel’s Competitive Edge –IMD World Report 2007
Country Rank ����
BUSINESS EXPENDITURE ON R&D
TOTAL EXPENDITURE ON R&DAS A PRECENTAGE OF GDP
AVAILABILITY OF QUALIFIED ENGINEERS
VENTURE CAPITAL AVAILABILITY
INFORMATION TECHNOLOGY SKILLS
2nd
Sweden
Sweden
Singapore
Israel
Israel
3rd
Finland
Finland
India
Denmark
Korea
4th
Japan
Japan
Iceland
Source: IMD World Competitiveness Yearbook - 2007
1st
Israel
Israel
Israel
U.S.A
Iceland
FLEXABILITY & ADAPTABILITY OF THE WORKFORCE Ireland Israel
Singapore
Iceland
HIGHER EDUCATION ACHIEVEMENTS
Hong Kong
Canada Japan Singapore Israel
Netherlands
Israel Ranks 21 Out of 125 Countries
Israel’s Competitive Edge –WEF Report 2006-2007
Source: WEF – The Global Competitiveness Report 2006 – 2007
“Israel does spectacularly well on those indicators that capture technology innovation, education, human capitaland this accounts for the very rapid movement of the Israeli Economy .”
(Augusto Lopez-Claros, Chief Economist, World Economic Forum, December 2006)
Country Rank ����
AVAILABILITY OF SCIENTISTS AND ENGINEERS
VENTURE CAPITAL AVAILABILITY
JUDICIAL INDEPENDENCE
TECHNOLOGICAL READINESS
QUALITY OF RESEARCH ORGANIZATIONS
2nd
Japan
Israel
Netherlands
Singapore
U.S.A
3rd
Finland
Netherlands
Israel
Israel
U.K
4th
India
Finland
New Zealand
Iceland
Israel
1st
Israel
U.S.A
Germany
Sweden
Switzerland
Israel Ranks 17 Out of 125 Countries
Foreign Companies Invested in Israel - Some Examples
US
• Microsoft
• Epix
• AOL Time Warner
• Intel
• IBM
• Perrigo
• Cisco Systems
• GE Healthcare
• Lucent
• 3Com
• Hewlett Packard
• Stryker
• Motorola
• Sun Microsystems
• Johnson & Johnson
• Dentsply
• Kodak
Europe
• British Telecom
• SAP
• Philips Medical
• Alcatel
• Siemens
• Cable & Wireless
• Deutsche Telekom
• Telecom Italia
• Generali
• Nestle
• L’Oreal
• Danone
• Unilever
• Vilmorin
• Veolia
• Ferring
• MERCK Serono
Asia
• Sony
• Toyo Ink
• Fuji
• Honda
• Sumitomo Trading
• Nomura
• Samsung Electronics
• Daewoo
• LG Group
• Hyundai
• Acer Computers
• Macronix
• Winbond
• Hutchison Telecomm
• Scigen
• Jain Irrigation
• Sun Pharmaceutical
Israel Hi-Tech Cluster
GlobalHi-tech
Companies
Availability ofTechnical People &
ManagementExpertise
ExistingTechnology
Infrastructure
Experienced2nd time
entrepreneurs
University ComputerScience Students
Foreign Technology
Firms
Incubators
Defense
CorporateR&D
LeadingAcademic
Institutions & Research
CorporateSpin-Offs
Seasoned VC Community
Government Support
EntrepreneurialCulture
Immigration
Source: IVA
“Soft” Infrastructure
“Solid” Infrastructure
NASDAQ Non US listed companies-Selected countries
0
10
20
30
40
50
60
70
80
Israel
Canada
Caym
an Islands
Berm
udaUnited K
ingdom
Australia
Hong K
ongJapan
Netherlands
Marshall Islands
FranceSingapore
Source: NASDAQ (2007) Analysis Invest in Israel
Israeli Breakthroughs –Selected Examples
� “Netafim” was the first to introduce low volume irrigation –
impacting irrigation practices around the world
� Given Imaging – First ingestible video camera used to view
the small intestine and diagnose disorders
� Intel’s Centrino and Pentium 4 microprocessors
� M System’s Disk on Key and Disk on Chip flash memory
� GE Healthcare’s portable cardiac ultrasound system
� The Phillips Brilliance CT Scanner
� IP Telephony invented by founders of Vocal Tec
� AOL Instant Messenger ICQ
� Zip compression technology
STATE OF ISRAEL Ministry of Industry Trade and Labor | Foreign Trade Administration | Investment Promotion Center 10
Water Market – Over View
STATE OF ISRAEL Ministry of Industry Trade and Labor | Foreign Trade Administration | Investment Promotion Center 11
The Ice Is MeltingThe Ice Is Melting
1979
2004
National Geographic, 2004
GreenlandNorth Pole
Canada
Canada
Russia
Alaska ( USA)
Russia
Alaska ( USA)
North PoleGreenland
STATE OF ISRAEL Ministry of Industry Trade and Labor | Foreign Trade Administration | Investment Promotion Center 12
Over half the world’s population will face severe water shortage in the next 50 years
“The one who solves problems of water should be award 2 Noble prizes:
One for Science
Second for Peace”
J.F. Kennedy
STATE OF ISRAEL Ministry of Industry Trade and Labor | Foreign Trade Administration | Investment Promotion Center 13
A Significant and Growing Market
Global water intelligence ,GE ,Source: SAM
66--77%% 1010--1212%%
Med growth
rate segments
(utility, basic infrastructure)
High growth
rates segments
(desalination, membrane, security)
2008:-Expected growth rates 2004
77--88%%
$600-800B
$500-600B
$400-450B
$300B
Electric
Power (E)
Semi
conductor
$400B
Cellular WaterIT
$600-650B
sizes comparison: ’Global markets
Telecom
Equipment
Pharma
$200-250B
Biotech
$40B
STATE OF ISRAEL Ministry of Industry Trade and Labor | Foreign Trade Administration | Investment Promotion Center 14
Israeli experience
STATE OF ISRAEL Ministry of Industry Trade and Labor | Foreign Trade Administration | Investment Promotion Center 15
Successful track record in Innovative solutions Successful track record in Innovative solutions
Source: Mr. Assaf Barnea, London 2006
STATE OF ISRAEL Ministry of Industry Trade and Labor | Foreign Trade Administration | Investment Promotion Center 1616
National Water Carrier
Mekorot’s Water Supply System 1964
2007
STATE OF ISRAEL Ministry of Industry Trade and Labor | Foreign Trade Administration | Investment Promotion Center 17
� Culture of Water saving society awareness, education, mind set
� Accumulated experience water shortage management, integration of water sources, research
� Established local industry $1.1B export
� New water technology companies 70 start up companies, emphasis on water treatment
� Entrepreneurial natureCapital recruitment platform, reputation, knowledge and experience
Israel Water Industry –Noted Strengths
STATE OF ISRAEL Ministry of Industry Trade and Labor | Foreign Trade Administration | Investment Promotion Center 18
Water Saving Society
STATE OF ISRAEL Ministry of Industry Trade and Labor | Foreign Trade Administration | Investment Promotion Center 19
Israeli Water Technology Highlights
� The largest desalination plant in the world, located in
Ashkelon. Produces a cubic meter of water for about 60
cents.
� With 75% of the country’s water reused, Israel is the
world leader in its percentage of recycled water. (The
second largest water recycler is Spain at 12%)
� Israel’s revolutionary drip and low pressure irrigation
systems helped achieve the highest rate of water
efficiency in agriculture in the world, at 70-80%
STATE OF ISRAEL Ministry of Industry Trade and Labor | Foreign Trade Administration | Investment Promotion Center 20
Israel: Already a Fertile Source of Innovative Water Technologies
Unique Position Unique Position Unique Position
Global Leadership
Watermanagement
water reuse DesalinationDesalination Irrigation
STATE OF ISRAEL Ministry of Industry Trade and Labor | Foreign Trade Administration | Investment Promotion Center 21
Governmental Decision number 157 on 18.06.2006
Development of water technology in Israel
Israel's position as a global leader for water solutions in the water market industry depends on the recognition of the latent potential that water technology could have on the Israeli economy; and on the importance and centrality that government and private companies have in this market, in Israel and in the exporting industry. It is equally important to examine the methods and the means that different governmental offices can use to support the development of water technology, from the R&D stage to the manufacturing and exporting stages….
Background –The Government Decision
STATE OF ISRAEL Ministry of Industry Trade and Labor | Foreign Trade Administration | Investment Promotion Center 22
Increasing
R&D
Activities
Encouraging
Innovation
Strengthening
Human
Capital
Penetrating
World
Market
Key Elements of the program
STATE OF ISRAEL Ministry of Industry Trade and Labor | Foreign Trade Administration | Investment Promotion Center 23
Advanced Irrigation Solutions
Market Overview:
� Israeli companies lead the global market with $900m in
sales, 40% of total international commerce
� Market has high-growth levels (10% US -60% China)
� More than 80% of Israel's irrigation production is exported
Israeli Irrigation Control:
� Irrigation control systems: home and municipal gardening
and agricultural purposes
� Advanced computerization of irrigation systems and sensors
STATE OF ISRAEL Ministry of Industry Trade and Labor | Foreign Trade Administration | Investment Promotion Center 24
Water Treatment
Israeli Water Treatment Market:
� 27% of Israeli water start-up companies are in the field of water
purification and improvement
Israeli Specialties in Water Treatment:
� ultra-violet light bulbs
� electro-magnetic sensors
� laser based analyzers
� UV light combined with bioluminescent bacteria
� Filters and membranes
Spotlight – Desalination:
� The largest seawater reverse osmosis desalination center in the
world at the lowest cost in the world
STATE OF ISRAEL Ministry of Industry Trade and Labor | Foreign Trade Administration | Investment Promotion Center 25
Flow Control
Israeli Flow Control Market:
� In 2006, valves and meters accounted for 27% ($243 million) of
the total water industry exports, while filters and pipes accounted
for 12% of exports ($108 million)
Israeli Specialties in Water Treatment:
� Control Valves
� Air Valves
� Check Valves
� Water meters
� Tailor-made valves that optimize pressure management
� Fluid control technology
� Corrosion-resistant material
� Light-weight valves
STATE OF ISRAEL Ministry of Industry Trade and Labor | Foreign Trade Administration | Investment Promotion Center 26
IDE desalination plant in Ashkelon
STATE OF ISRAEL Ministry of Industry Trade and Labor | Foreign Trade Administration | Investment Promotion Center 27
2007 Highlights
STATE OF ISRAEL Ministry of Industry Trade and Labor | Foreign Trade Administration | Investment Promotion Center 28
First Fruits
� Growth of 28% in water technology exports in 2007
R&D
� Privatization of the “Kinarot” incubator
� Water activities in Ashkelon & Sde Boker incubators
� "Katamon”- cooperation program between Academia and Industry
� Confirmation of “Magnet” program
Investments & Strategic Relations
� Technology Giants: Siemens, GE, ABB, Dow Chemicals, Jain Irrigation Systems
� Formation of V.C. for Water Technologies:
10 funds – $250 Million
STATE OF ISRAEL Ministry of Industry Trade and Labor | Foreign Trade Administration | Investment Promotion Center 29
First Fruits
International Cooperation
� Setting cooperation framework with the Ministry of Water in China
� Water Authorities: Beijing, Madrid, Melbourne, Sao Paulo & Buenos Aires
� Standardization Authorities: India, China and Taiwan
� WATEC 2007 - 2000 foreign visitors, 90 delegations from all over the world, 23 ministers and VIP’s.
� Agreement with the Water Commissionership of Mexico
STATE OF ISRAEL Ministry of Industry Trade and Labor | Foreign Trade Administration | Investment Promotion Center 30
First Fruits: International Recognition
Figaro (France): “Israel is the Silicon Valley of Water
Technology”
The Independent (S. Africa):"Israel is a world-leader in Water
Desalination”
H20 (Holland): “Israel – Silicon Valley of Water Technology"
STATE OF ISRAEL Ministry of Industry Trade and Labor | Foreign Trade Administration | Investment Promotion Center 31
First Fruits: International Recognition
Nacion (Costa Rica):“Israel is a world-leader in Water Technology”
CNBC : " Israel is a source for innovation in Water Technologies”
STATE OF ISRAEL Ministry of Industry Trade and Labor | Foreign Trade Administration | Investment Promotion Center 32
www.israelnewtech.gov.il
PHONE: +972-2-6662632
FAX: +972-2-6662638