Business Networking in Israel
The reading of today’s financial papers may not look too encouraging. “The Economist” predicts zero growth for Israel in 2009. The Finance Minister, Bar-On, is quoted as saying: “I must honestly admit that the ability of the Israeli economy to cope with the global crisis is wide-ranging and effective. Even in the most optimistic scenario, the Israeli economy will suffer a substantial slowdown in 2009.”
So what channels are open to Israeli entrepreneurs, looking for a way out?
Last week I commented on the importance of social networking, especially in the Israeli economy. Israel is very much at the heart of the industrial revolution in communications, with software engineers often being leaders in blogging and more.
Today, I went to a working lunch, hosted by IBM, in honour of a visiting delegation from the SE Region of the American-Israel Chamber of Commerce. Based in Atlanta, Georgia, this state sees itself as the 29th largest economy in the world. And these guys were investing their time in coming to Israel. Why?
Look at the current crop of Georgians in the Holy Land. GE, UPS, Coca Cola, Panasonic all have major centres in Tel Aviv or nearby. GE have an r&d unit here, and “the real thing” is produced in Israel.
Just over 2 years ago, McKesson of Atlanta bought out a small Israeli cardiology team, Medcon, for a cool US$100m. Today, 45 Israeli companies are based in Georgia and nearby.
The IBM building is no small edifice. On the same campus are the status symbols of Alcatel, Intel and others. The Atalanta-based delegation came looking for technologies that offer reimbursement in medical care. Specifically, in a state with a large city and an enormous hinterland, they need ways to provide services, equally to all.
The room contained around 15+ Israeli start ups; medical devices, logistic operations etc. I was there in my capacity as CEO of CEPCO. We made a strong pitch, engaging the visions and concepts of the American guests.
In February 2009, Georgia will invest in hosting a medical care delegation from Israel. This economic powerblock clearly is aware of how to drive through the global recession, and meeting today was a significant step on that road.
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Greetings.
You have a very interesting blog here. I’ve read a few of the entries.
Given your economic background/interest, I was wondering if maybe you had a feel for how this downturn is going to affect Israeli high-tech and the tech sector. There hasn’t been much about it in the English language Israeli media. As someone who will be moving there in the fall with the hope of finding a tech sector job, I’m needless to say a little curious.
Elianah – thanks for your compliments
It is difficult to give a definitive response. Yes, there are lay offs. Overseas markets will shrink compared to the beginning of 2008.
And yet, a product – new or established – which offers true added value, will be snapped up by distributers and resellers. I have seen that in the past month with companies I work with.
Further, to offer anecdotal evidence, today I attended a breakfast networking group of about 100 people in Jerusalem. I left with several new technologies waiting to move ahead. And there were people looking to hire as well.