Over the past decade or so, Israeli management has earned a deserved reputation for innovative management. With limited natural resources, the country is known as a world leader for new techs in bio and nanotech, as well as IT and telephony.

Why? Well, the country has had to think quickly in order to survive. It is part of the national pysche.

Consider the origin of the phrase “out of the box thinking”. The idea is to resolve a problem from an unexpected direction. Israelis excel at performing unusual tasks.

To illustrate the point, I recall an anecdote told to me by a former naval officer and now leading market analyst for a successful high tech company near Netanya.

Years ago, he was stationed at a UK naval port on a training mission. They received an evening off to watch TV. 2 sets were available, one to watch the Eurovision Song Contest and one permanently set on a different channel. All the graduates poured into the one room. All?

All, except a few Israelis. They let everyone settle in a crowded room, moved next door, closed the door, and promptly switched the TV station to…the Euro contest.

Some minutes later in walked one of the senior members of staff. Initially worried that they had blotted their books, they were soon reassured. He burst out laughing, and I quote: “No wonder you guys always win your wars.”

So why does Israel have a lot of successful start ups? Because in order to succeed, you need to bulldoze your way through or around the numerous and varied obstacles. Israelis possess that capability.