Singular Factors behind the Growth of Innovation in Israel

Israel is known as one of the leading countries in innovation, mostly in terms of
Research and Development (R&D) activity. We describe the growth of innovation
activity and focus on the question about the leading factors that explain the rapid
growth of innovation activity. Against the theoretical background of the rule of
comparative advantage, we find that the innovation trend in Israel was mostly
stimulated by comparative disadvantages. The explanation of the growth of innovative
activities is mostly attributed to the characteristics of the national innovation ecosystem, and to the ability to understand its functioning and to derive appropriate policy measures. Using the data of 127 countries as gathered in the Global Innovation
Index (GII), we propose a model for the explanation of the relative growth of innovation in Israel, and support it through an in-depth survey of the main leaders of innovation in the last years, from the fields of academy, industry and government.