mapping the israeli high tech industry project: ifise work package 7 arie sadovski
DESCRIPTION
Mapping the Israeli high tech industry Project: IFISE Work package 7 Arie Sadovski. Methodology. Database from a commercially available source Eight hundreds companies were contacted in two cycles Companies: estb. 1993 or later and hdqtrs in Israel - PowerPoint PPT PresentationTRANSCRIPT
![Page 1: Mapping the Israeli high tech industry Project: IFISE Work package 7 Arie Sadovski](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815072550346895dbe6e3a/html5/thumbnails/1.jpg)
Mapping the Israeli high tech industry
Project: IFISE
Work package 7
Arie Sadovski
![Page 2: Mapping the Israeli high tech industry Project: IFISE Work package 7 Arie Sadovski](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815072550346895dbe6e3a/html5/thumbnails/2.jpg)
Methodology
• Database from a commercially available source• Eight hundreds companies were contacted in
two cycles• Companies: estb. 1993 or later and hdqtrs in
Israel • Received 143 qualified, filled-in questionnaires• Each company was contacted at least two times; in most cases three times: 1st call to identify the
founders, then interview via fax/email and follow-up
![Page 3: Mapping the Israeli high tech industry Project: IFISE Work package 7 Arie Sadovski](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815072550346895dbe6e3a/html5/thumbnails/3.jpg)
The companies
![Page 4: Mapping the Israeli high tech industry Project: IFISE Work package 7 Arie Sadovski](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815072550346895dbe6e3a/html5/thumbnails/4.jpg)
Major industrial sectors•Communication (hardware) and electronic components•Software for internet•Software for other applications•Electronic medical instruments and devices•Software for telecommunication (ex internet)•Biotechnology (excluding pharmaceuticals)•Computer (hardware) semiconductor devices and electronic components•Optical instruments and materials (including optical communication items)
![Page 5: Mapping the Israeli high tech industry Project: IFISE Work package 7 Arie Sadovski](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815072550346895dbe6e3a/html5/thumbnails/5.jpg)
Industrial sectors
0% 5% 10% 15% 20% 25%
Communication&comp.
SW-internet
SW-Other application
Medical instruments
SW-telecom.
Biotechnology (ex.pharma)
Computers&comp.
Computers&comp.
Industrial eng. &autom.
New materials
Internet sites
Internet services
Precision instruments
Other
Pharma
![Page 6: Mapping the Israeli high tech industry Project: IFISE Work package 7 Arie Sadovski](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815072550346895dbe6e3a/html5/thumbnails/6.jpg)
Number of employees
• The average number is 36
• 80% of the firms have < 50
• 15% of the companies have < 10
• Mean employees' number having formal academic degrees is 23.4
• on the average at least 65% of the employees have academic degrees
![Page 7: Mapping the Israeli high tech industry Project: IFISE Work package 7 Arie Sadovski](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815072550346895dbe6e3a/html5/thumbnails/7.jpg)
Companies’ age
Companies
Age # %
1 year 29 20
2-3 years 54 38
4-5 years 31 22
6+ years 29 20
Total resp 143 100 Mean 3.5
![Page 8: Mapping the Israeli high tech industry Project: IFISE Work package 7 Arie Sadovski](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815072550346895dbe6e3a/html5/thumbnails/8.jpg)
Number of employees*
Employees companies %
1-5 9 7 6-9 20 1510-19 46 3420-49 33 2550-99 18 13100-249 7 5250+ 3 2Total 136 100 Mean 35.6* From data base
![Page 9: Mapping the Israeli high tech industry Project: IFISE Work package 7 Arie Sadovski](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815072550346895dbe6e3a/html5/thumbnails/9.jpg)
Product development phases
# %Research and development 21 15Technological demonstration 6 4Prototype 12 9ß site 17 12Initial sales 43 31Sales 41 29Total respondents 140 100
![Page 10: Mapping the Israeli high tech industry Project: IFISE Work package 7 Arie Sadovski](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815072550346895dbe6e3a/html5/thumbnails/10.jpg)
Proportion of R&D expenditures to income*
R&D Expend # % 0-10% 9 1111-20% 11 1421-30% 5 631-50% 9 1151-70% 12 1571-100% 31 38101+% 4 5Total 81 100Mean 74% * Approx., year 2000
![Page 11: Mapping the Israeli high tech industry Project: IFISE Work package 7 Arie Sadovski](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815072550346895dbe6e3a/html5/thumbnails/11.jpg)
The founders
![Page 12: Mapping the Israeli high tech industry Project: IFISE Work package 7 Arie Sadovski](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815072550346895dbe6e3a/html5/thumbnails/12.jpg)
Number of founders per company
Founders # %
1 22 15
2 57 40
3 42 30
4 15 11
5+ 6 4
Total 142 100
![Page 13: Mapping the Israeli high tech industry Project: IFISE Work package 7 Arie Sadovski](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815072550346895dbe6e3a/html5/thumbnails/13.jpg)
Founders’ formal schooling
# %
Non academic 11 8
Vocational Engineers 8 6
B.Sc. /B.A 73 51
M.Sc. /M.A 63 44
Ph.D. 67 47
Military courses 15 10
![Page 14: Mapping the Israeli high tech industry Project: IFISE Work package 7 Arie Sadovski](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815072550346895dbe6e3a/html5/thumbnails/14.jpg)
Founders’ professional training disciplines
# %
Engineering 64 45
MBA 24 17
Exact / Computer Science 77 54
Management/Economic 21 15
Life Science 26 18
![Page 15: Mapping the Israeli high tech industry Project: IFISE Work package 7 Arie Sadovski](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815072550346895dbe6e3a/html5/thumbnails/15.jpg)
Founders' age groups distribution
Age # %
24-33 74 24
34- 43 83 26
44-53 104 33
54-65 47 15
66+ 6 2
Total 314 100
![Page 16: Mapping the Israeli high tech industry Project: IFISE Work package 7 Arie Sadovski](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815072550346895dbe6e3a/html5/thumbnails/16.jpg)
Women founders
Per company Companies
1 13
2 1
4 1
![Page 17: Mapping the Israeli high tech industry Project: IFISE Work package 7 Arie Sadovski](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815072550346895dbe6e3a/html5/thumbnails/17.jpg)
Changes in the founders' position
# %
Yes, all of them are still in the lead 94 67
No, part of them are in the lead 30 21
No, none of them are in the lead 16 11
Total respondents 140 100
![Page 18: Mapping the Israeli high tech industry Project: IFISE Work package 7 Arie Sadovski](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815072550346895dbe6e3a/html5/thumbnails/18.jpg)
The entrepreneurial
environment and background
![Page 19: Mapping the Israeli high tech industry Project: IFISE Work package 7 Arie Sadovski](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815072550346895dbe6e3a/html5/thumbnails/19.jpg)
The geographical birth place of the new technology
# %
Israel 128 90
Abroad 12 8.5
Both 2 1.4
Total respondents 142 100
![Page 20: Mapping the Israeli high tech industry Project: IFISE Work package 7 Arie Sadovski](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815072550346895dbe6e3a/html5/thumbnails/20.jpg)
The working environment in which the new technology was borne
# %
Academic institution 23 20
High Tech industry 73 62
Academic + High Tech 4 3
Low Tech industry 18 15
Total respondents 118 100
![Page 21: Mapping the Israeli high tech industry Project: IFISE Work package 7 Arie Sadovski](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815072550346895dbe6e3a/html5/thumbnails/21.jpg)
Previous occupation of the founders
# %
Unemployed 2 1
Students 9 6
Academia, Research Institute 24 17
Industry 108 76
Total respondents 143 100
![Page 22: Mapping the Israeli high tech industry Project: IFISE Work package 7 Arie Sadovski](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815072550346895dbe6e3a/html5/thumbnails/22.jpg)
Founders’ previous industrial positions
# %
R&D Manager 78 55
Staff 31 22
Production Manager 10 7
Staff 1 1
Marketing /sales Manager 33 23
Staff 6 4
Total responses 159
![Page 23: Mapping the Israeli high tech industry Project: IFISE Work package 7 Arie Sadovski](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815072550346895dbe6e3a/html5/thumbnails/23.jpg)
Fund raising patterns
![Page 24: Mapping the Israeli high tech industry Project: IFISE Work package 7 Arie Sadovski](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815072550346895dbe6e3a/html5/thumbnails/24.jpg)
Number of rounds used for fund raising
Rounds Companies %
1 48 39
2 29 24
3 24 20
4 15 12
5 6 5
Respondents 122 100
![Page 25: Mapping the Israeli high tech industry Project: IFISE Work package 7 Arie Sadovski](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815072550346895dbe6e3a/html5/thumbnails/25.jpg)
Sums raised in the different rounds
Sums raised Seed 1st 2nd<150K 26 8 6151-600K 37 14 82-3M 30 48 403+ 8 29 46Total 100 100 100
![Page 26: Mapping the Israeli high tech industry Project: IFISE Work package 7 Arie Sadovski](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815072550346895dbe6e3a/html5/thumbnails/26.jpg)
Sums raised in the different rounds
Fund raising patterns
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
<50K <150K <300K <600K <1M 1-2M 2-3M 3-5M 5+M
Co
mp
anie
s
Seed capital
Round 1
Round 2
![Page 27: Mapping the Israeli high tech industry Project: IFISE Work package 7 Arie Sadovski](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815072550346895dbe6e3a/html5/thumbnails/27.jpg)
Non-government financial sources
for new start ups * Number Percent
Self 39 27Family and friends 19 13Private investors (Business Angels) 76
53Private incubator 7 5V.C 74 52Bank loan 17 12Stock exchange; IPO 8 6Investment Company 14 10Strategic investor in Israel 14 10Strategic investor abroad 13 9Other source 10 7
*Multiple responses per company were given. N=143
![Page 28: Mapping the Israeli high tech industry Project: IFISE Work package 7 Arie Sadovski](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815072550346895dbe6e3a/html5/thumbnails/28.jpg)
Non government financial sources
53%
52%
13%
12%
10%
10%
9%
7%
6%
5%
27%
Private investors
V.C
Self
Family and friends
Bank loan
Investment Company
Strategic investor in Israel
Strategic investor abroad
Other source
Stock exchange; IPO
Private incubator
![Page 29: Mapping the Israeli high tech industry Project: IFISE Work package 7 Arie Sadovski](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815072550346895dbe6e3a/html5/thumbnails/29.jpg)
Yozma VC funds as a funding source Companies*
Yozma VC funds Number Percent
Eurofund 4 15Medica 1 4Walden 4 15Gemini 3 11Nitzanim 1 4Apex 3 11Inventech 4 15Polaris 9 33Vertex 2 7Jerusalem Pacific Ventures 0 0Star 4 15
*Multiple responses per company were given. N=27
![Page 30: Mapping the Israeli high tech industry Project: IFISE Work package 7 Arie Sadovski](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815072550346895dbe6e3a/html5/thumbnails/30.jpg)
Government financial sources
Companies* Number Percent
Government Incubators 21 15R&D grant – Regular 49 34R&D grant - For start-up 5 3R&D grant - “Magnet” 7 5Bi-National programme – BIRDF 11 8Bi-National programme – Other 1 1Investment Center – Grant/capital equipment 11 8Investment Center – Income tax benefits 21 15
*Multiple responses per company were given. N=143
![Page 31: Mapping the Israeli high tech industry Project: IFISE Work package 7 Arie Sadovski](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815072550346895dbe6e3a/html5/thumbnails/31.jpg)
Incubators and Yozma programs affiliated companies-
comparison of sales and growth- rates to the otherrespondents companies
![Page 32: Mapping the Israeli high tech industry Project: IFISE Work package 7 Arie Sadovski](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815072550346895dbe6e3a/html5/thumbnails/32.jpg)
Respondents (% of total)
No
Yes
Incubators graduate
52 63 No sales
22 37 100k-1M
26 0 >1M
Sale
s , $
110 19
Total respondents
![Page 33: Mapping the Israeli high tech industry Project: IFISE Work package 7 Arie Sadovski](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815072550346895dbe6e3a/html5/thumbnails/33.jpg)
Responding companies (% of total)
No Yes Yozma supported
55 46 No sales
27 12.5 100K-1M
18
41.5 >1M Sale
s , $
105
24
Total
![Page 34: Mapping the Israeli high tech industry Project: IFISE Work package 7 Arie Sadovski](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815072550346895dbe6e3a/html5/thumbnails/34.jpg)
2000 1999 1998
No
Yes
No
Yes
No
Yes
Yozma supported
41 24 51 47 64 46 No
33 35 29 13 15 8 21-40
26 41 20 40 21 46 >41
G
row
th %
63
17
55
15
48
13
Total respond.
![Page 35: Mapping the Israeli high tech industry Project: IFISE Work package 7 Arie Sadovski](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815072550346895dbe6e3a/html5/thumbnails/35.jpg)
Difficulties encountered
![Page 36: Mapping the Israeli high tech industry Project: IFISE Work package 7 Arie Sadovski](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815072550346895dbe6e3a/html5/thumbnails/36.jpg)
The six most difficult areas and expectations for government assistance
Areas of activity - Difficulty index (mean) * Gov. assistance
Companies responding
“YES”
Fund raising - 4.2 58%Marketing - 3.8 45% Networking with strategic partners - 3.5 37% Connection with international collaborators - 3.3 49% Recruiting - 3.2 19% Connection to funding sources - 2.9 44% Protection of IPR – 2.8 32%
* The respondents were asked to rank each difficulty on a scale of 1-5.
![Page 37: Mapping the Israeli high tech industry Project: IFISE Work package 7 Arie Sadovski](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815072550346895dbe6e3a/html5/thumbnails/37.jpg)
Other areas of activity
Areas of activity - Difficulty index (mean) * Gov. assist.
• Locating the company in a building facility – 1.8 19%• Networking with suppliers – 1.9 7%• Sources for technical information - 2.0 22% • Training of personnel -1.8 26%• Advice on legal matters – 2.1 16%• Advice on management matters – 2.2 17%• Networking with experts – 2.4 7%• Information on trends in the market & tech-2.4 24%• Networking with other firms – 2.5 17%• Advice on strategic matters – 2.5 16%
![Page 38: Mapping the Israeli high tech industry Project: IFISE Work package 7 Arie Sadovski](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815072550346895dbe6e3a/html5/thumbnails/38.jpg)
The areas of higher difficulty Activities of high difficulty index
4.2
3.8
3.5
3.3
3.2
2.9
2.8
2.5
2.5
2.4
2.4
00.511.522.533.544.5
Financial support
Marketing
Networking with strategic partners
Connection with international collaborators
Accessibility to labor pool and recruitment
Connection to funding sources
Protection of IPR
Professional networking with other firms
Advice on strategic matters
Networking with professional experts individuals
Information - markets trends and tech dev
Difficulty index
![Page 39: Mapping the Israeli high tech industry Project: IFISE Work package 7 Arie Sadovski](https://reader035.vdocuments.us/reader035/viewer/2022081520/56815072550346895dbe6e3a/html5/thumbnails/39.jpg)
End