What makes Israel a country with just over 7 million population, limited resources and surrounded by challenges, achieve such feats in economic prosperity?

On the other hand, countries like India and China with over 1 billion population pale in comparison.

You'll be amazed how seemingly simple facts can be profound.

I am not much of a reader. But I found it hard to put down this book. While the subject of economics generally does not catch people's interest, the book makes it very interesting like a story, with facts and figures.

If you were mostly up-to-date with the news in the past, you will be able to recollect a lot of news/events that occurred in the past and associate them with the untold stories & incidents from behind the scene. Akin to watching the 'making of the movie' after watching the movie itself.

Today when the US is going through tough economic times, there is a lot that can be learned from this book. The very model of entrepreneurship that built the US has been perfected by this tiny nation. Perhaps US could take a cue or two from Israel's success story in resuscitating it's economy.

A very simple/lucid but profoundly inspiring and thought provoking book. One can read it over and over ... plenty to learn from it.

Almost exactly a year ago, my phone rang. "Hi, this is Dan Senor. I am writing a book about the impact of the military on the economy of Israel. I was told that as part of my research, I needed to talk with you. Is this a good time for a conversation?" And so began my involvement with the watershed book, "Start-up Nation: The Story of Israel's Economic Miracle."

Dan Senor was told to contact me - not because I know anything about the Israeli economy - but because I have strong opinions about how American military veterans are impacting - and will in the future impact - the U.S. economy. Senor and his collaborator, Saul Singer, have written a book that I now consider a "must read" for anyone who has an interest in innovation and entrepreneurship. By almost any reasonable metric, the Israeli economy has emerged as the most innovative in the world. This book explains the complex reasons behind this unlikely success story.

Using carefully reasoned argument and convincing case studies, Senor and Singer tell a compelling story about the unique qualities that allow Israeli Defense Forces (IDF) veterans to perform at a very high level in the business world. Some of the factors that they describe in detail involve the process by which promising Israeli high school students are selected and trained for elite military units, the unique sense of camaraderie that develops within those units and perpetuates through years of military reserve service, the willingness to challenge authority, and the sense of urgency that is part of every day life in Israel.

Early in the book, the authors compare these characteristics with the U.S. military:

"Former West Point professor Fred Kagan concedes that Americans can learn something from the Israelis. 'I don't think it's healthy for a commander to be constantly worrying if is subordinates will go over his head, like they do in the IDF,' he told us. 'On the other hand, the U.S. military could benefit from some kind of 360-degree evaluation during the promotion board process for officers. Right now in our system the incentives are all one-sided. To get promoted, and officer just has to please more senior officers. the junior guys get no input,'" (Page 53)

A culture that embraces an assiduous commitment to thoroughly debriefing every aspect of performance is a hallmark of Israeli business culture that has its roots in the shared IDF experience of many Israeli entrepreneurs:

"Israeli air force pilot Yuval Dotan is also a graduate of Harvard Business School. When if comes to 'Apollo vs. Columbia,' he believes that had NASA stuck to its exploratory roots, foam strikes would have been identified and seriously debated at the daily 'debrief.' In Israel's elite military units, each day is an experiment. And each day ends with a grueling session whereby everyone in the unit - of all ranks - sits down to deconstruct the day, no matter what else is happening on the battlefield or around the world. 'The debrief is as important as the drill or the live battle,' he told us. Each flight exercise, simulation, and real operation is treated like laboratory work 'to be examined and reexamined [is subjected to] rich - and heated - debate. That's how we are trained'" (Pages 93-94)

Leave it to me to see evidence of Renaissance Men at work and "intersectional thinking" in operation in the way in which Israeli entrepreneurs conduct themselves. Here is one such example:

"I was working on a creative project with an art graduate from Bezalel. He looked the part - long hair, an earring, in shorts and flip-flops. Suddenly a technological problem erupted. I was ready to call the techies to fix it. But the Bezalel student dropped his graphic work and began solving the problem like he was a trained engineer. I asked him where he learned to do this. It turns out he was also a fighter pilot in the air force. This art student? A fighter pilot? It's like all these worlds come colliding here -- or collaborating - depending on how you look at it." (Page 183)

The authors compare the performance of the Israeli educational system, which encouraging vigorous questioning to that of neighboring Arab countries, where rote memorization is the model
for teaching:

"This emphasis on standardization has shaped an education policy that defines success by measuring inputs rather than outcomes. For example, according to a study produced by the Persian Gulf offices of McKinsey & Company, Arab governments have been consumed with the number of teachers and investments in infrastructure - buildings and now computers - in hopes of improving their students' performance. But the results of the recent Trends in International Mathematics and Science Study ranked Saudi students forty-third out of forty-five." (Page 213)

Israeli focus on outcomes versus the Arab world's emphasis on inputs reminds me of a recent conversation with my friend, USN Vice Admiral (Ret.) Wally Massenburg. While he headed up Naval Aviation, he pushed a paradigm shift within the naval community to begin measuring outcomes rather than inputs, and the result were dramatic. At the end of his career, he had transformed a very tradition-bound part of the U.S. Navy into an entity no known as "Naval Aviation Enterprises."

I have not touched with any detail on the results of my conversation with Dan Senor. He was gracious enough to include several quotations from that interview in one of the book'ss chapter. Those quotation will be the subject of a separate upcoming Blog post.

I have been recommending this book to anyone who will listen. If you have any stake in leading innovation in any form, you will find challenge and inspiration in the pages of this book and in the practices it describe among Israeli start-up companies.

Enjoy.

Al

I work in the Israeli hi-tech, and many things mentioned in the book were familiar to me but I still did not appreciate the magnitude of Israeli achievement. Dan Senor and Saul Singer set the record straight. About time! I knew the 8088 assembler, and had read books on the design of the OS/2 operating system, but I did not know that the 8088 chip was designed in Haifa and the 386 in Jerusalem and that the whole world's production of the 386 chip during the Gulf War in 1991 depended on Israelis staying on schedule - even when missiles were falling on them. But I could relate to how it must have felt. Only last year in January 2009 we continued discussing work in the safe room while the sirens warning of an imminent hit from Grad rockets launched some 40km away in Gaza continued to scream.

The book manages to explain well the confluence of factors that made the Israeli hi tech miracle possible - the informality of the Israeli society, the questioning of authority, the role of the elite army units, the Israeli chutzpah, the commonality of purpose and the Jewish drive for excellence. The authors in my opinion are somewhat downplaying the Jewish factor which is understandable since the point they are trying to make is that many of the experiences are transferable to other societies. Perhaps. But on the other hand many of the ingredients, the chutzpah, the common purpose, the questioning of authority are also a product of Jewish history and Judaism. If we compare the Jewish vs. Muslim Nobel laureates per capita contribution in the area of Chemistry, Physics, Medicine and Economics (the Peace and Literature are too politicized to be useful), we get the following: There are 150 Jewish Nobel laureates out of 13.3 million Jews and there are 2 Muslim laureates out of 1.5 billion Muslims. So the ratio is (150 /13300000)/ (2/1500000000) = 8458 - between 3 and 4 orders of magnitude. The book quotes that between 1980 and 2000, Egyptians registered 77 patents in the U.S. Saudis registered 171. Israelis registered 7,652. Since the population of Egypt is 78 million and Israel's is 7.2 we get a ratio of (7652/ 7200000)/(77/78000000) = 1151- three orders of magnitude. In other words, the Jewish excellence in achievement in not a small factor of the Israeli miracle.

Chapter 14 is titled "Threats to the Economic Miracle" and it does discuss the Iranian threat. In my opinion, not enough. Bernard Lewis, the foremost western scholar on Islam believes that the Iran cannot be deterred. He wrote: "In this context, mutual assured destruction, the deterrent that worked so well during the Cold War, would have no meaning. At the end of time, there will be general destruction anyway. What will matter will be the final destination of the dead--hell for the infidels, and heaven for the believers. For people with this mindset, MAD is not a constraint; it is an inducement."
Somehow Bernard Lewis's opinion is either not well know or is disregarded.

I believe that US companies Intel, Microsoft and all others who have crucial R&D facilities in Israel could be more outspoken about the importance of their Israeli offices and the threat they are under. It could be that they believe that the ingenuity, innovation and chutzpah they've witnessed through the years will be used once again by Israel to neutralize the Iranian threat helping both Israel and the US at the same time. I sincerely hope so too since this Administration still believes it is possible to negotiate with Ahmadinejad and does not take Bernard Lewis seriously.

How Does A Small Nation Become An Economic Whiz-Bang Like Israel?

Kinda helps when the US taxpayer subsides $8 billion in direct annual payments, several billion in annual loan guarantees (which don't get paid back and isn't readily published), and deals that allow technology transfers on an unprecedented scale for a foreign power.

Now provide this economic help to a nation of only 5 million people. You get the picture.

Israel is a great country, wonderful people and I hope they prosper even more than they currently are doing and finally get some peace, but I do get a bit annoyed with a ra-ra book like this not mentioning the role of the US taxpayer in making Israel a success story.

The author needs to award the USA more credit, and I didn't really like the slams against other nations -- unnecessary in my opinion.

This book provides a direct factual account of Israel's extraordinary entrepreneurial activities. In an absorbing probing yet quite entertaining manner this work explores the unique Israeli mindset and environment that facilitates their unique startup culture. Extremely well researched, well written, authoritative, a must read.

I can understand, going over the top to write about your own country (mission-critical teams, companies live and die by israeli teams (yeah right!!)). But at the same time, bashing other countries such as china and India, telling how they are the back offices and just menial work being done there, is something i really do not approve of. India and china has very highly rated universities and it's students among the world's best. There are some revolutionary inventions done. Microsoft has may times said how Indian IIT students are the critical group resposible for MSFT's success. There's Vinod Dham who invented intel pentium, vinod khosla, shabber bhatia(invented the present e-mail system), so on and so forth.

I know you guys wouldn't mention any of other countries but atleast don't show other countries in a low light just to show your greatness, it looks so cheap and i've lost all respect for you guys. Every country has it's own greatness and I'm sure, India and China are much better in comparision.

reading this book will change how you look at life and makes you realise anything is possible .....just read and learn from the people of a small nation whos been in battel for thier existance since the begining of time .....and now yet again they found anoter way to gain worlds attention and admiration .....Bravo Israel....may one day there will be peace

Israel is the world's techno-nation. At the start of 2009, more than 60 Israeli companies were listed on the Nasdaq, more than those of any other foreign country. This amazing economic has occurred in the face of war. Also during the six years following the bursting of the tech bubble in 2000, Israel suffered from terrorist attacks and second Lebanese war, and yet, the share of the global venture capital market did doubled to 30 percent.

What more amazin is hat there are more new innovative ideas that coming out of Israel than there are out in the Silicon Valley right now!!!

What I liked in "Start-Up Nation" book is that the authors tell real stories of entrepreneurial success, such as Shai Agassi and his electric-automobile technology idea that now in the process of creating in isreal and Europ.

It is not easy to discover why Israel, a country of just 7.1 million people has managed to become the first technology nation. But tHIS book is defenetly know how to present and shine a spotlight on Isreal success.

Mirit

I immensely enjoyed the "Start Up Nation" over the years I have worked closely with many of the key names in the book....I found the book to be factual and very enjoyable....and the research was quite good....I recommend this book everyone who has a passion and is driven towards success.

I do wonder why the original cast members and contributors to Israel as "Start Up nation" were not mentioned.

The following remarkable indidviduals Eli Hurvitz, Uzia Galil, Efi Arazi, Fred Adler, Dan Tolkowski, Stef Wethheim, Harvey Krueger were the original pioneers of "Start Up Nation" and made it possible for all the other people in the book to move foward.....these people were the Steve Jobs and Bill Gates of Israel.

I would like to see a Prequel or Sequel written to "Start Up Nation"; talking about the true pioneers that led up to the "Start up Nation".....with all that said the book was excellent and I commend the writers on their efforts and committments to entrpreneurship in Israel.

Mel Klein
President
Stewart/Laurence Associates
Executive Search and Selection

The book is good read , it remind me Soviet propaganda from the 1950, when similiar authors made accounts in this global INN without innkeeper. The authors if they served in military have rather different experience from US marines or those whom Churchill seen as "Rum and Buggers " in his army times.I too. On p.96 is described unbelievable selfbelief in action - and missing beingness. Also comments in strict selection of super supers , and one has to ask ,where ,into what Holywood or yeshiva are deposited those who do not qualify among heroes? Where is that human refuse , what every society produce ? P. 97 -600 soldiers killed 400 Hezbolah - q.what for ? they after 120 years did not find common tongue?Why to be so pride for? p 129 - Israel will become one of top 15 wealthiest nations 2020. One has to see Kongo people slaving for Israely firms and see that it will be great achievement.Miserry of those unknown.P. 130 The true fact all others have to share responsibility as for many today. "For many Jews , there literally was no place to go. " It is ours as well theirs common heritage. For them because they did not want to stay.They do to Palestinians something very similar. And it is not easy to acknowledge.P.210 what would destroy Israel is peace, not just time without arms , but peace of minds and motives to be, It would be over night, und it would probably destroy lot of us with them. As good will perstroika did USSR.P.213 why not grant conmmon wealth citizenship to arabs? Everybody can do it or try it. Conclusion with Shimon Peres is moderate , amputated some parts of story.But book is about the enterpreunership what substitute statehood for identity, while having staff on payroll. The mishmash of who are you and what are they -the rest of mankind -consumers - waits to be said. At the end as well as @ the begining , Israeli or Jews are on this planetary spaceship as well with us , as we with them .And even when someone from either side would like to be alone or have it all for themselves, it is better for all that it is not showa alternative. Book is nice read as I said similar books was in 50ties public libraries full.What is amputated in that success story is enslaved Palestinians who plaster Israeli componds while exIDFs supervise them with M 16. And it is not Gulag or Birkenau ,it is Israel beyond the technologic inovation NASDAQ success today. It makes me woried about copyright for truth , who has it ?

In the past few decades, the tiny nation of Israel (7.05 million population) has become a powerhouse of technical innovation. Just sixty years old, surrounded by sworn enemies, harassed around the globe by left-wingers, Israel itself is largely bereft of natural resources. It depends on the entrepreneurial will and skills of its people and their talents in engineering, technology and other professions.

Authors Senor and Singer attempt to tell the story of Israel's current thriving economy in a direct manner, but to get there they must first tell of the nation's roots in socialism, explain how the military threats and economic boycotts arrayed against the nation have, paradoxically, strengthened the country. Then there is the story of immigrants: Israel is largely a nation of immigrants ranging from illiterate Ethiopians to sophisticated Soviet émigrés with advanced degrees.

The authors handle the explanation of the history well, interweaving it with the story of the present. Especially important is the confluence of the technology explosion, the trend toward globalization, Israel's own educational and military establishments and the influx of Soviet Jews.

Intel was the first major tech company to establish itself in Israel. Its success and the technology revolution set off a wave of entrepreneurial activity in Israel, aided by the influx of venture capital.

Overall, the story is absolutely fascinating. From 1980 through 2000, Israel registered 7,652 patents. Surrounding nations who are either avowed enemies or exist in cease fire status don't fare nearly as well. During the same period Saudi Arabia registered 181 patents; Egypt, 77; Kuwait, 52; UAE, 32; Syria, 20 and Jordan, 15. While Israel has one of the most highly educated populations in the world, the surrounding nations have some of the highest illiteracy rates on the globe. None of this augurs well for a peace that would allow Israel to devote less of its budget and energy to military defense.

Finally, the authors address the specter of a nuclear armed Iran. Personally I think the authors take too sanguine a view of the threat posed by Iran and the Obama administration's increasingly hostile attitude.

The authors are definitely high on Israel's prospects and sometimes the book sounds like a sophisticated Chamber of Commerce brochure. But they don't try to conceal their enthusiasm. The book is well researched with comprehensive footnotes and bibliography.

On the whole, the book is inspiring. Israel, despite many obstacles (many of them of its own making) has prospered on the cutting edge of technology and globalization. It is a living demonstration of the value of education, free trade and capitalism. If only more people would set aside their hatreds, the world would be a far better place.

Jerry

WORTH A READ AND A RE-READ! FIND OUT WHY THIS LITTLE COUNTRY, SURROUNDED BY ENEMIES HAS THE ABILITY TO BE ABLE TO CREATE MORE START-UP BUSINESSES THAN ANY OTHER COUNTRY. THEIR PEOPLE ARE SMART, CREATIVE, ABLE TO THINK OUTSIDE OF THE BOX AND MORE.

EXTREMELY INFORMATIVE AND VERY EASY READING.....IT CERTAIN LY WOULD BE A BENEFIT FOR SOME OUR U.S.A. ARMED FORCES TOP BRASS TO BE READING THIS BOOK.......EDWARD C ADLEMAN, VOORHEES,NJ

Really enjoyed the book, it was a fast read while on vacation. Well written and great information with specific cases that I enjoyed learning about.

Dan Senor and Saul Singer's Start-Up Nation: The Story of Israel's Economic Miracle is well researched and a fascinating read. The book is divided into four main parts:

* The Little Nation That Could
* Seeding a Culture of Innovation
* Beginnings
* Country with a Motive

In The Little Nation That Could we learn PayPal's Scott Thompson's first impressions of a young Shvat Shaked, whose young company, Fraud Sciences, developed the most up-to-date solution to the problem of online payment scams, credit card fraud, and electronic identity theft. As we read about Fraud Sciences, its founders Shvat Shaked and Saar Wilf, their approach to problem solving and the impressions of the top executives of PayPal, Ebay and Benchmark Capital, it becomes clear that the story of technological innovations and start-up ventures in Israel is deep and unique.

I was struck by story after story that traced technological and scientific innovations to Israeli dedication, chutzpah, a culture of debate/argument and the lack of a hierarchy. One of the earliest investors in Israel was Intel, and the company credits its Israeli team with the "right turn" in thinking that led to innovations in Intel's microprocessor and the development of its Core 2 Duo chips.

In Seeding A Culture of Innovation Senor and Singer suggest that the Israeli Defense Forces (IDF) and its elite branches have helped to develop leadership, skills, and social networks: "While it's difficult to get into the top Israeli universities, the nation's equivalent of Yale, Harvard, and Princeton are the IDF's elite units. The unit in which an applicant served tells prospective employers what kind of selection process he or she navigated, what skills and relevant experience he or she may already possess." Senor and Singer describe the elite and intensive Talpiot program - its development, what it entails, its strengths, and the accomplishments of its graduates. The relative openness, importance placed on devolving authority and giving greater responsibility to lower ranks has played a significant role in developing effective and confident leaders; this has benefited Israel as a nation and as a leader in technology.

I found Seeding A Culture of Innovation fascinating. The comparisons that Senor and Singer make between the nation states of Israel and Singapore and the IDF and the US military were particularly insightful.

Beginnings covers the history of Israel's economy and the effects of government policies. The chapter is full of inspiring and impressive successes. There are examples of "the Israeli's penchant for taking problems-like the lack of water-and turning them into assets the fields of desert agriculture, drip irrigation, and desalination." Senor and Singer write about (1) Simcha Blass and his development of drip irrigation and the creation of Netafim, the global drip irrigation company and (2) about Kibbutz Mashabbe Sade in the Negev Desert where a salt water well was used for farming warm water fish like tilapia and sea bass.

In Beginnings Senor and Singer also discuss how factors like the waves of immigration, particularly skilled immigrants from the former USSR, have contributed to Israel's continued growth and development. Similarly the Jewish diaspora and "brain circulation" have played significant roles in enabling Israel and its industries to develop and flourish. While countries like my homeland suffer from the "brain drain," Senor and Singer describe brain circulation as "the phenomenon when talented people leave, settle down abroad, and then return to their home country and yet are not fully 'lost" to either place." Through example after example, Senor and Singer demonstrate how Israel has benefited from a deep diaspora network.

The stories in Start-Up Nation demonstrate a determination, tenacity and dedication that is impressive and inspiring. In the chapter The Buffett Effect, Senor and Singer share how investors like Warren Buffett have chosen to invest in Israel regardless of the violence in Israel and the many risks. Senor and Singer suggest that Warren Buffett does not discount the catastrophic risk in Israel but that Buffett does not consider the factory or the R&D facilities to be the value of his company's investment in Israel. Instead, Senor and Singer write that when Buffett bought into the company Iscar, Buffett considered the talent of the employees and management, the international base of customers and the brand to be Iscar's value. Even with the factories destroyed, Iscar, Warren Buffett's investment, would not suffer catastrophic risk.

The final section of Start-Up Nation, Country with a Motive, describes the start of Israel's defense industry, how in the medical devices and biotech sectors companies have been successful creating innovative "mashups" and "economic clusters." The concept of a cluster was developed by Michael Porter and is understood to mean "a unique model for economic development because it's based on 'geographic concentrations' of interconnected institutions - businesses, governmental agencies, universities-in a specific field." We're familiar with these economic clusters: the financial cluster in Wall Street and the biotech cluster in Boston. Citing Michael Porter, Senor and Singer emphasize the benefit that comes from "the intense concentration of people working in and talking about the same industry provides companies with better access to employees, suppliers, and specialized information. A cluster does not exist only in the workplace; it is a part of the fabric of daily life, involving interaction among peers at the local coffee shop, when picking kids up from school, and at church. Community connections become industry connections and vice versa." Israel has been successful in creating technology, biotech and medical device clusters. The development of these clusters is in sharp contrast with the absence of similar organic or self-sustaining clusters in Dubai despite the massive investments in money and talent of Dubai, Inc.

In Start-Up Nation, Dan Senor and Saul Singer give us a well researched and fascinating insight into Israel's economic miracle. It should be recommended reading for students, teachers, and implementers of public policy and economic policy.

ISBN-10: 044654146X - hardcover $26.99
Publisher: Twelve (November 4, 2009), 320 pages.
Review copy provided by the publisher.

START-UP NATION: THE STORY OF ISRAEL'S ECONOMIC MIRACLE considers how a nation of only 7.1 million and only 60 years old produces more start-up companies than larger, stable nations of the world. This focus on politics, business and culture offers insights that are key to understanding both Israel and global economic challenges and makes for a survey that will go far beyond the usual Judaic studies collection, reaching into libraries strong in business, social science, and history.

I had some idea of how innovative the Israelis are - but this book was an eye opener - what is happening in Israel is amazing and terrific - an engine for their economy and for the world at large indeed.

I was struck by how important the Israeli military experience has been for the many companies and success stories they talk about. The story about the battery powered car was illuminating indeed ... change the battery in the time it takes to fill a tank of gas ... I cannot wait to see how that experiment fares in Israel.

The book also underscores why Israel is so hated around the world by so many - simply because they are very good at what they can do and do it inspite of the hatred towards their tiny nation ... Perhaps it is their will to survive and thrive that makes such amazing innovations possible - but I see Israel Envy everywhere ... and it is most unfortunate.

At times when reading the book, I wanted to jump on a plane and head there ... spend some time in the universities, the society at large - definitely a country to visit and spend a LOT of time in ...

Beyond Clusters: Review of Dan Senor & Saul Singer, Start-Up Nation: The Story of Israel's Economic Miracle (Twelve, 2009).
Ari Applbaum
December 2009

I wrote my first business plan in high school. The two-page plan (perhaps an overstatement) was promptly filed and forgotten instead of pitched to investors. The concept of offering free internet access to attract an audience for highly targeted advertising was later "stolen" by California-based NetZero, a company once valued at three billion dollars. This type of Chutzpa, a teenager's audacity to think he could reinvent the way people connect to the Internet, is not uncommon in Israel.

But why? Why does Israel produce "more start-up companies than large, peaceful and stable nations like Japan, China, India, Korea, Canada and the United Kingdom?" Why is it that "after the United States, Israel has more companies listed on the NASDAQ than any other country in the world?" These are the questions Dan Senor and Saul Singer set out to answer in their short and intriguing book.

Senor and Singer begin by asserting that the answer "it's simple - Jews are smart, so it's no surprise that Israel is innovative" will not suffice as it "obscures more than it reveals". Instead they offer a thesis based on the Cluster Theory of Harvard Business School professor Michael Porter. Porter's clusters are "geographic concentrations of interconnected companies, specialized suppliers, service providers, and associated institutions in a particular field,(1)" in Israel's case, high-tech. The closeness and interconnectedness of such institutions help foster innovation and economic growth. The authors demonstrate throughout the book how Israel serves as a cluster, if not The Cluster, of high-tech. The three main players that form this cluster, in addition to the business sector, are the Israeli government, universities, and military.

The government encourages immigration and investment in research and development. The investment is both ample (per capita, Israel spends more than any other country on civilian R&D) and smart. The authors cite for example a 16-year old, government-funding program which incentivized investors and effectively gave birth to the country's startup boom in the 1990s.

Israeli universities are world-class scientific research centers which create scientists who naturally find a home in the business sector. In 1959, with the creation of Yeda - the Weizmann Institute of Science's technology transfer company - Israeli academic institutions pioneered the practice of commercializing academic discoveries. This is a particular strength of Israeli universities today.

The unique element in the cluster might be the military. Senor and Singer explore the IDF's significant role in producing innovation. Elite intelligence and technology units train many of the next generation's entrepreneurs. Combat units empower Israelis to make split-second decisions and both assume awesome responsibilities and challenge -rather than blindly obey - their superiors. Compulsory military service is where future business relationships are made and reserve duty is where they are maintained. CEOs don't turn up their noses but seek out veterans and value their experience. The authors survey the birth of Israel Aerospace Industries (IAI) as a case study highlighting the security industry's role as a growth engine for other industries, and how security technologies often migrate into the high-tech industry.

This cross-pollination between government, academia, military and the business sector greatly contributes to Israeli innovation. But the heart and soul of the cluster is Israeli society. The interconnectedness between these institutions works primarily because of Israel's small size and close-knit society. Israeli startup veteran Yossi Vardi's statement that "everybody knows everybody" in Israel is a cliché but not without some truth. But there's more to it than size.

"The greatest contribution of the Jewish people in history is dissatisfaction," Shimon Peres tells the authors. "That's poor for politics but good for science." Peres notes that when a new shipment of the latest technologies arrives from the U.S, within five minutes Israelis are taking it apart and trying to improve. This is true throughout Israeli society. Israelis are constantly inventing and reinventing, thinking and rethinking, trying to improve themselves and everything around them. Additionally, Israelis are not afraid to fail, and most possess the right balance of personal ambition and an individualistic drive with a spirit of collaboration and sense of community. These are all critical success factors for a healthy startup culture.

Try as they may to steer clear from the "Jews are smart" theory, Senor and Singer end up recognizing that the unique conditions of Israel as a Jewish State and Israelis' unique sense of purpose that results are the core of Israel's success as a startup nation. The personal and professional journeys of Israelis Shai Agassi and David Frohman are prime examples. Had Shai Agassi stayed in California, he would have likely been appointed the next CEO of SAP, one of the most lucrative and sought-after jobs in Information Technology. But Agassi, whose story is told in great detail in the book's introduction, decided to help free Israel and the world from oil dependency. An ardent Zionist, he launched Project Better Place, the most ambitious electric vehicle project in history, and chose Israel for his pilot site.

David Frohman helped build Intel from the ground up in California. The obvious career choice for him was to stay put and benefit from Intel's growth and success, yet Frohman returned in 1974 to the Jewish State to realize the then improbable vision of turning Israel into a world leader in chip design. During the 1991 Gulf War, with missiles falling on Israeli population centers, Intel instructed Frohman to "do whatever you must do." Why did Frohman keep Intel's plants open? And why would Intel employees choose to continue showing up to work, as the authors note, "the more brazen the attacks, the larger the turnout?" Senor and Singer answer in a single word - davka, a unique Hebrew word loosely translated as to spite'. Israelis possess a sense of purpose that drives them to thrive davka in the face of security threats and adversity.

After 242 pages of an easy and enjoyable read, one realizes that the answer to the authors' question was hiding in the book's title all along. Israel does not just produce startups, it is a startup. Israel is a young, entrepreneurially spirited, small yet fast-growing, fast-paced, nimble, impatient, risk-taking, anti-hierarchical, creative and - perhaps most importantly - successful startup. If Zionism was a daring two-page business plan (with Herzl as a starry-eyed entrepreneur knocking relentlessly on doors of European venture capitalists), then Israel is its equally unimaginable successful outcome. Today, "The new pioneering Zionist narrative is about creating things," entrepreneur Erel Margalit tells the authors. Startups are not grown in a vacuum; they need the right breeding grounds, an incubator, if you will. And what better country to serve as a startup incubator than a country that is a startup? Therein lies the author's main revelation.

Senor, a former Deputy White House Press Secretary, and Singer, a Jerusalem Post writer, and are first and foremost excellent storytellers. What makes the book a must-read are the dozens of anecdotes and case studies. The authors' two comprehensive rolodexes translate into more than 100 top-quality interviews. They spoke with senior Israeli officials such as Prime Minister Benjamin Netanyahu and President Shimon Peres, met with chief executives at Google, Cisco and Intel, and interviewed military experts, Jewish historians, and some of the key figures in Israel's venture capital and high-tech scene, including Erel Margalit, Chemi Peres, Yossi Vardi, Jon Medved and many others. The outcome is fascinating. The authors' access to industry experts also brings to light lesser known tales, such as the account of a power struggle between Intel Haifa and Intel Santa Clara, which may be the highlight of the book. Senor and Singer unveil a 2003 drama, little known outside the semiconductor industry, in which Intel Haifa managed to save the company and perhaps the entire industry from an almost certain downfall by thinking out of the box and using Israeli chutzpa to relentlessly force senior executives into a paradigm shift.

It is not clear who the target audience is for this book. First and foremost, the authors hope it will become the ultimate playbook for CEOs, a compilation of lessons American executives can learn from Israelis about innovation. Senor and Singer quote HBS Professor Jon Kao, who says that the United States is "rapidly becoming the fat, complacent, Detroit of nations." The authors repeatedly state that America has much to learn from Israeli innovation but struggle to find exportable lessons and end up focusing mostly on what is unique to Israel. Consequently, their recommendations seem forced and not completely hashed out. They derive from the Israeli experience, for example, that mandatory service - either in the military or in some sort of national service - could help foster innovation. But what would this system look like? How would this affect the deeply-rooted capitalist ethos of American society? These questions remain unanswered. Perhaps the book is meant for business students. It is certainly not academic, but Senor's HBS background and investing involvement are apparent through the use of business jargon and academic theories. It is not implausible that a chapter would be used by professors in the field of business innovation, but more than that is unlikely. Most seriously, the authors touch upon but do not offer an adequate explanation of how to take startups to the next level and create larger, viable corporations that thrive over time. Israel may have the same problems.

The book clearly tries to appeal to Zionist audiences. The Jewish authors are unabashedly Zionist and are clearly ideologically motivated. Singer dedicates the book to his brother, an officer in the IDF who was killed in Lebanon. Senor dedicates the book to his father who helped start the Weizmann Institute's pioneering solar energy research program. While the authors need not completely distance themselves from the subject matter in such a book, at times it reads like a Ministry of Foreign Affairs or an "Invest in Israel Hasbarah" (Israel advocacy) book. Their juxtaposition of Israel with Gulf States is helpful in highlighting why growth without civil liberties, creativity, and an engaged population cannot build a cluster of high-tech innovation. But the authors seemed to have too much fun with the analogy, as if to say "look what Israel can do and its Arab neighbors cannot." As a Hasbarah piece, it is indeed the long-lost, mature, sophisticated and beefy cousin of the Israel21Cs and "Israel invented the Cell Phone" burgeoning positive messaging resources, but that's the problem: by definition it isn't a Hasbarah project.

The average business student might enjoy the book as light reading, but it is not likely to be assigned as an academic textbook. CEOs might read it to learn lessons from the stories told, but it falls short of becoming "a playbook for every CEO." There is too much technological jargon for non-techies and at the same time it is probably too journalistic for industry insiders. And for those interested in innovation outside the Jewish/pro-Israel community, the book's Zionist focus might be too hard hitting.

It is impossible to understand Israel as a startup nation without examining the many components that make it so. While there is something for everyone in the book - academic, businessperson, Zionist, technologist and story lover, it is the possibly rare reader who combines all of the above who would take greatest pleasure in the book. That may imply a narrow readership - although I can think of at least one now-post high school business plan writing Israel advocate who thinks it's a must read. There may also be seven million other potential readers, Israeli entrepreneurs who fuse many interests to form an entrepreneurial spirit. But if the authors are right in asserting that all those interested in innovation could stand to benefit from following Israel's entrepreneurial model, this book may be a good place to start.

i Harvard Business School - Institute for Strategy and Competitiveness Web Site - [...].

This is a very lucid and easy read, telling the story of Israel's high tech success. As someone that grow up in Israel during the 80's, it is nice to see that Israel has managed to create a successful private industry (which barely existed beforehand), creating innovative technology companies across a myriad of fields, focusing specifically on semiconductors, lasers, software security, and the Internet. However, none of this would have been possible without one central figure -- Dov Frohman. In my opinion, Frohman is only behind Herzl and Ben-Gurion as a measure of contribution to the success of the state of Israel.

Dov was the first General Manager of Intel Israel, and the reason Intel agreed to establish an R&D center and later a fabrication base in Israel. The success of Intel Israel brought the country respectability and opened the gates for every other technology multinational to establish similar R&D centers, such as Motorola, HP, Microsoft, Applied Materials, Cisco, Google, and many others.

Israelis should be more appreciative to the invaluable contribution that Dov Frohman has made to what many hope will be Israel's economic success going forward.

I am not Jewish. But this book is staggering in its exposure of the continuing injustice which has been the lot of the Jewish people for the last several centuries, the terrible cost of ideologically imposed myopia with accompanying bad political, economic and military policies.

Using vignettes from economic success stories, the book documents the performance of a people who have outperformed every other nation in building an economy and creating jobs and prosperity for citizens the majority of whom were evicted penniless from their own countries while the Arab nations around them have imposed vicious trade blockades, blizzarded them with rockets and sponsored worldwide campaigns about the injustice of lands seized by Israel in an unprovoked attack to obliterate it. It documents an extraordinary litany of obstacles Israel has overcome to achieve this remarkable economic record and still outperform much less disadvantaged economies many-fold.

The book is adequate with the facts. Numbers of patents granted to Israel vs other nations, number of new companies listed on stock exchanges, numbers of new jobs created, total dollars exported per capita, etc. are irrefutable. There are useful comparisons to other countries with proactive economic development such as Singapore, Korea, and UAE.

The book, however, is not a polemic or intended to embarrass anyone, any government, religion or ideology. The authors' purpose is to identify why and how Israel has been able to achieve such literally unbelievable economic results (if you do not follow Israel closely, you will be amazed by what you learn in this book), particularly in light of the USA's current economic issues and performance in job creation. The authors' conclusions are threaded throughout the work and provide ideas for public and private policy makers; but I finished wishing they had pulled their observations together for application outside Israel although that might have taken the authors too far from the fact and objectivity which characterize the book.

I think I am an optimist; but in the end the book left me pretty melancholy about us human beings. Here is a sliver of a country with "the only receding desert", creating millions of jobs in impossible situations, integrating and employing disparate refugees from more than 100 countries at a pace and success rate unapproachable anywhere else, creating more patents and technological innovation than anywhere else in the world. The US has a problem with immigration from Latin America and the loss of jobs and a poorly performing economy. Israel's neighbors, i.e. most of the countries of the Middle East, have the same problems with very poor results, if any results at all. Is the world looking to this economic petri dish with admiration and curiosity? No, seemingly most Muslims wants their obliteration. No, the rest of the world is apparently happy to use whatever they succeed at if it can do so without offending Arab nations. No, the US Congress and President seem bent on a course in the USA's current economic difficulties similar to the book's description of what had to be undone in Israel to achieve its current economic success. Why can't we learn from Israel? Why can't the Arab nations adopt and use the leanings of these people of the same if not similar ancestry and the same God? Why can't our politicians look to countries with and without economic success for their policies? Do religion and party trump history, logic, and statistics? The book doesn't go there.

If we are to have a peaceful world, all nations will have to learn how to create and/or sustain economies which provide satisfying jobs for their citizens. This book should be in the library of anyone curious about the formula to achieve that.

Well researched and written, but almost comes across as propaganda with all of the ra-ra Israel cheerleading. The book is written as an analysis into the drivers of exceptional economic growth, but falls flat as I found the book to be dismissive of reasons behind any non-Israel country's growth. While the individual growth stories and anecdotes are intriguing, the author struggles in taking the lessons and weaving them into the overall thesis. I'd say it is more Compilation of Great Israel Business Stories than The Story of Israel's Economic Miracle.

Dan Senor and Saul Singer present some fascinating evidence as to why the Israeli economy is so successful despite having to spend such a a large percentage of GDP on defense and security and faced with an economic boycott from its neighbors. This book is worth a read as is George Gilder's, "The Israel Test." For anyone interested in actualy investing in Israeli stocks, there is a no-load mutual fund, The American Israeli Shared Values Capital Appreciation Fund, that invests in many of the companies that Dan and Saul mention. The Fund was up 43% in 2009. Hopefully this book will get people to focus on Israel as a democratic and entrpreneurial island in a sea of ignorance and intolerance. There are more aspects to Israel than history and controversy. It is a miracle and thanks to Messrs. Senor and Singer for putting together this good book.

Dan Senor and Saul Singer skillfully bring to light Israel's national ethos to explain how Israel has managed to achieve the highest density of start-ups in the world, in spite of its precarious beginnings, its small size, and its isolation from its neighbors for well-known reasons. Israel specializes in what Messrs. Senor and Singer call high-growth entrepreneurship, i.e., start-ups that reengineer entire global industries. As the authors demonstrate convincingly, the Israeli high-tech business success story lies not only in the presence of the institutional elements that underpin classic business clusters, but also, and more importantly, in the key components of its cultural core. Many Israelis display a mixture of seemingly contradictory attitudes which can be baffling to anyone unfamiliar with Israel's national ethos: simultaneously both driven and flat and both ambitious and collectivist. The IDF (Israel Defense Forces) plays a key role in inculcating specific societal norms into the young men and women who do their mandatory military service. Messrs. Senor and Singer summarize this ethos very well when they write: "it is a story not just of talent but of tenacity, of insatiable questioning of authority, of determined informality, combined with a unique attitude toward failure, teamwork, mission, risk, and cross-disciplinary creativity." To their credit, the authors do not gloss over the weaknesses of the Israeli economy such as the mixed performance of its other industries and the low Israeli workforce participation chiefly attributable to Haredim (ultra-Orthodox Jews) and Israeli Arabs. Messrs. Senor and Singer usually explain clearly what different countries such as the United States, Singapore, Finland, and the states of the Gulf Cooperation Council can learn from the Start-Up Nation. However, these countries should keep in mind that, like emulating a successful company with a distinctive corporate culture, copying "High-Tech Israel Inc." will be challenging. Just recycling bits and pieces of that model will often end in failure. To summarize, Messrs. Senor and Singer usually succeed in giving their audience an impartial view of the strengths and weaknesses of the Start-Up Nation.

the book is good.

however i noticed that the book consists of 75% of the pages and the rest are notes and references.

It's quite refreshing to read a book that deals with Israel as a legitimate, normal member of the community of nations and doesn't dwell endlessly on the Palestinian-Israeli issue. Senor and Singer compare and contrast Israel to the United States, Singapore, Dubai, South Korea, and other nations and ask: Why has this tiny nation amassed such an outstanding record in high-tech, especially in the area of start-ups?

One may agree or disagree with their answers, which generally relate to Israeli "can-do" culture, the lack of hierarchy or formality in that nation, the Israeli military's history of successful improvisation in responding to difficult operational problems, and a burst of creativity immediately after the end of a period of economic stagnation. But this book does a great service in helping technologists, business people, and ordinary readers understand the secrets of Israeli success, which can be duplicated elsewhere.

It's not clear that Ben-Gurion and other founders of Israel, who were steeped in the socialist ethic, can legitimately be reinvented by Senor and Singer as capitalist icons. And the book is a bit repetitious and too long. However, it's an excellent read and a terrific new look at what makes Israel tick.

The author's seek to answer the question how the tiny country of Israel has more companies listed on NASDAQ than any country outside the U.S. The book focuses on a few key themes including the role of the military, the importance of technology, and support of the government. This timely book offers some great lessons for governments and businesses how to nurture entrepreneurship; however, as the book also explains, it's not that easy.

If you are related to the fields of entrepreneurship, development, innovation, or macro-economics I really recommend you to read the book "Israel: The Start-up Nation". The authors claim they have come up with the idea of writing this book, when in a Harvard Business School study-trip to Israel in the beginning of the millennium, they asked themselves how is that this tiny country, wedged among states with which it is unable to conduct trade (due to boycott of the Arab League), and with just over seven million people (and that has to support a defense budget that eats up to 8% of GDP, which is 4 times more the OECD average), attracts more capital from VCs that all of Europe combined... can create more tech-ventures than anywhere else in the world except for California, patents more IP in a month than Portugal or Greece (developed countries with more than 10 million people) throughout its entire economic history, has several Nobel prizes in its faculties and has the largest concentration of companies on the NASDAQ after the U.S.

I will just give you a hint, that is to forget the theory of American special friendship, because the inter-state institutional friendship plays a very limited part of the game - further, other European countries receive far much more money that Israel receives in economic aid to development from the U.S. and are unable to play on the same field.

It is an enjoyable read, that helps to debunk some myths about economic development - investing in a national pride project (in the Israeli case, the survival of the state) is more important, that investing in pure infra-structure (like highspeed trains and the likes) that end up having low to null return, specially when compared to the creation of wealthy market oriented tech economy.

START-UP NATION is a "must read." I've suggested it to several friends and purchased two copies for family members. The authors offer an introspective, detailed look at what makes Israel tick. Among their many contributions to readers' craving for a better understanding of this amazing country, the authors prompted me to conclude that American business leaders should take a page from the Israeli playbook by hiring many more of our combat veterans--men and women--to jump start U.S. companies. For far too long, corporate recruiters and in-house human resources personnel in our country have failed to fully value the talent, innovation, maturity and drive reflected in military resumes. As the numbers of U.S. Representatives and Senators with prior military experience (not to mention working media and corporate executives) continue to decline, perhaps this fact is not surprising. Nonetheless, as Israel's success demonstrates, U.S. businesses have not fully tapped the leadership expertise of our war-tested service members.

Ritch K. Eich, Ph.D.

Excellent book on the miraculous prosperity of Israel. Evidences here that Israel is a blatant sign to the world at large that the God of Jacob Is-real. Great and fun read. Also contains helpful explanations and comparisons as to why other nations' economies are not nearly as robust. But as some know - and is not mentioned here - it ultimately lies with God.

The wonders of the book were the unknown or little publized stories of creative successes, and how and why Israel has and continues to weave itself into the fabric of the worldwide economy.

Even though I am very far from being an Israeli fan, I sincerely enjoyed this book. OK, it is too much Israeli marketing&PR, but what can you say: it is legitimate. Despite the fact that I was intimidated until almost page 100 by authors' delving too much into the "goodness" of Israeli armed forces, and almost glorifying the neighbour-bashing Israeli army and air forces, I still kept reading the book which, in the end, turned out to be a very fruitful endeavour.

This is a good book. It provides a very nice vision for those who are interested in economic development, industrial policy and especially innovation/entrepreneurship policy. There are invaluable hints regarding those topics, however much they are hidden in between the lines. Nevertheless, as I said, the tips are invaluable and very teaching.

The main question I had in mind while reading the book was whether I could take home some of the experiences and lessons described in the book. Some definitely cannot be imported. They are those idiosyncratic things which are very much Israeli and Jewish-specific:

- For example the role of Jewish diaspora and the resultant "connectedness" that came with it,
- the geographical positioning of Israel, the 'culture' of Israeli jews,
- war-related chance-based motivations,
- reverse Jewish brain-drain en masse and
- the never ending US-support of Israel (though, in the book, you hardly trace any mention of this tremendously important fact, which I believe, is a major bias of the book).

There are, however, many other factors that you can take home regarding innovation and industrial policy, like:

- The importance of talent & human resources,
- critical roles of cross-training, of
- venture capital financing,
- multidisciplinary approach to business problems,
- proximity of the elements of an ecosystem,
- of sense of community membership for the success of business clusters, and
- culture of risk-taking, failure-welcoming and 'chutzpah'.
- Also very important is the book's verification of the positive and critical role of government intervention in a country's entrepreneurial push and economic development.

Those are very valuable aspects of the book.

Moreover, the book is also very enlightening for those people like me who have very little knowledge about Israel and never interested in learning about that country's inner workings. Because, while you read with a focus to find clues regarding innovation and entrepreneurial policy, you learn the history, predicaments and some aspects of the inner workings of Israel's economic system. This, I personally found very interesting; kind of buy one, get one free.

In a nutshell, even though this is a deliberate 'marketing' effort for Israel, it is still a very valuable book for those interested in industrial, entrepreneurial and innovation policy. It is, however, not at all a guide for company-specific innovation policies and certainly NOT a business-related book.

If you're interested in learning about what it takes to make a country, then read this book!

It is a travesty that the Israeli work ethic has up until now, been so shrouded in controversy and darkness. An edifying and timely book.

The book well written, sticks to the facts with no-political aspects.
Has very good examples, tells about the true nature of the Israelies and not stigma's.

Very recommended book!

This is a very interesting book on the development of the technological boom in Israel. While quite a tiny country, it appears to be one where the most start-up companies per citizen (and in fact, even in absolute numbers)are created and where a huge number of patents are filed. The authors are foreign policy expert and are, obviously, very pro Israel but still manage to stay somewhat objective in their assessment of why this has happened over the last 60 years. What is interesting is their explanation why similar events have not occurred in other countries. What is also interesting is the fact that the Israelo-Arab conflict does not have a major role in the book. It certainly is in the background and is part of the explanation for the phenomenon that is the major point of the book. The book is very readable and should be requisite in MBA programs.

I appreciated this book so much I lent it to my boss to read before his first trip to Israel. Fantastic research, reporting, writing. I wish the analysis of Haredim, right-wing religious Jews, was deeper and more authoritative. The authors have Israeli Arab sources for the discussion of Arab women who do not work, but no sources for the brief discussion of Haredi Jews. The authors report that an astounding percentage (73%) of Haredi men do not "participate in the economy", that is, do not work. When the authors describe how Haredim lack IDF connections and the skills Israelis acquire serving in the military, they seem to assume that Haredim would want to be part of the Israeli entrepreneurial economy. But Haredim have totally different values, values that include punctilious Torah observance, intense study of Talmud, and non-participation in work. Since the Haredi life is all-encompassing, work is a last resort, as it usually means giving up full time Torah study. Haredim therefore seek economic support from the Israeli government or benevolent societies or well wishers in America. Haredi wives are expected to have jobs and support their husbands and growing numbers of children, but even if they can find work, it is far insufficient to support a large family and purchase apartments for the marriageable children. Some Haredim have to rent (as many people do routinely in New York). In any event, work for a husband and father is the final straw. As a Haredi father said on a New York Times video recently, "Rent is so high, if it continues like this, I might have to go to work." A significant comment. This mindset is deeply ingrained, not easily changed except by creating incentives that would not be politically feasible, like reducing government payments to families. The productive segment of Israeli society is bearing the weight of economic obligation to large religious families whose fathers could work, but choose not to.

I appreciated this book so much I lent it to my boss to read before his first trip to Israel. Fantastic research, reporting, writing. I wish the analysis of Haredim, right-wing religious Jews, was deeper and more authoritative. The authors have Israeli Arab sources for the discussion of Arab women who do not work, but no sources for the brief discussion of Haredi Jews. The authors report that an astounding percentage (73%) of Haredi men do not "participate in the economy", that is, do not work. When the authors describe how Haredim lack IDF connections and the skills Israelis acquire serving in the military, they seem to assume that Haredim would want to be part of the Israeli entrepreneurial economy. But Haredim have totally different values, values that include punctilious Torah observance, intense study of Talmud, and non-participation in work. Since the Haredi life is all-encompassing, work is a last resort, as it means giving up full time Torah study. Haredim therefore seek economic support from the Israeli government or benevolent societies or well wishers in America. As a Haredi father said on a New York Times video recently, "Rent is so high, if it continues like this, I might have to go to work." A telling comment. This mindset is deeply ingrained, a significant economic drain on Israel, not easily changed - except by cutting off government welfare to those who are poor by choice. Which would be politically unlikely. The productive segment of Israeli society is bearing the weight of economic obligation to religious families whose fathers could work, but choose not to.

Powerful insight into what makes innovation work + the amazing story of Israel's unseen global impact

Isreal is a young yet rich country. How is it possible that a country who is constantly battling enemies can be so powerful? I've often asked myself that question and reading this book helped me to understand. If you are interested in learning about what it takes to make a country, then you should read this book.

A factual book that is magnificently written and is as readable as an historical novel.
This untold story should be read by the world.The chutzpah of a 61 year old nation living with adversity
and leading the world in innovation.

This book is one of the most interesting books I've ever read. I had a hard time putting it down because of the information and the well way it was written.

I was amazed at the information about Israel that I didn't know! I had no idea about all the innovation and progress that have happened in Israel since they re-established their nation in 1948. Honestly, I was shocked that this information is not more widely known. It's truly amazing how far this little nation has come in 60 years. They are far ahead of us in so many ways. I was also amazed at how many well known companies have an office in Israel and consider them their best people with the most innovative ideas.

I wholeheartedly recommend this book. It is such a good book and such an interesting read. You'll be like me, I'm sure, and have a hard time putting it down. One suggestion - don't read it before you're going to sleep - you'll stay up too late. :)

We climbed into a cab in Jerusalem early one morning and after asking where we were headed, our driver launched into an impassioned monologue about the wrong-headed thinking of some low-level bureaucrat to send the street cleaners off to work at 8 a.m. on a work day.

"They should be cleaning the streets in the middle of the night," he yelled. "They don't know what they're doing in this government. They're doing this street clenaing all wrong!"

I chalked his insistent tirade up to the chutzpah that permeates Israeli society. But Dan Senor and Saul Singer, the authors of Start-Up Nation: The Story of Israel's Economic Miracle, would see his insistence on voicing a better way to do things as key to what has made this 61-year old state become a major player on the world economic stage. Israel has more companies on the NASDAQ than all of Europe, Korea, Japan, Singapore, China and India COMBINED.

Senor and Singer explore the unique culture created by persecution, mandatory military service, the melting pot of immigration, lack of shame for business failures, cross-pollination of ideas and people, and the urgent need to learn how to survive when surrounded (and occasionally attacked) by enemies. Israel's business successes seem nonsensical - impossible, even. Start-up Nation explores the cultural, educational, social, emotional, and commercial factors that have allowed this beleagured nation to bloom in the desert. One small beef: the authors omitted the place of faith in the mix in their study of Israeli business/culture. Because faith is foundational to Israeli existence, even secular Jews are shaped by the faith culture all around them.

This highly readable, well-researched 300-page hardcover book should be mandatory reading for anyone involved in a non-profit organization or for-profit business. It is possible to foster a culture of innovation within an organization if those in charge have the chutzpah to flatten hierarchy and fight institutionalism. Recommended.

I have been impressed with the intelligence and creativity of Jewish people and their culture almost as long as I can remember - their contributions in science and the arts have been enormous and greatly out of proportion to their population. As a student of academic achievement, I've also always been impressed at how well their youngsters perform in school - a model for most others. However, I have also seen how well the Jewish people support each other, and thus immediately am prone to not take Senor and Singer's data on Israeli VC capital intensity (eg. $2.5X/capita vs. the U.S.) at face value, especially given Israel's unconscionably selective (vs. Palestinians re citizenship) genetic population and immigration.

Despite this inherent respect for Jewish culture and genetic stock, I am extremely offended by the unstated premises of "Start-Up Nation" - that stealing Palestinian land and decades of abusing and murdering its citizens is to be somehow overlooked and excused. Then there's the $103 billion in foreign aid given Israel by the U.S., plus aid given Egypt, Jordan, and other nations conditioned on their attitude towards Israel and Jewish migration, along with U.S. loan guarantees, and legal and illegal technology transfers to Israel. Then there was the damage to the U.S. economy via the 1970s Arab Oil Embargo (retaliation against U.S. support for Israel), and the at least partial motivation of bin Laden et al to attack the U.S. because of our strong support for Israel. Some estimate the total cost of supporting Israel at $3 trillion (Thomas Stauffer). Given 9/11, the second Gulf War, the on-going war in Afghanistan, and the enhanced Homeland Security effort - I suspect the long-run cost is much greater.

Why don't they talk about the $90 billion a year foreign aid they receive from the US? This is the height of patting-on-the-back journalism - I don't see how we can use the word "scholarship" for this.

Dan and Saul do a terrific job telling the fascinating story of the Israeli high-tech phenomenon, and drawing lessons that can be useful for many other current and would-be tech centers as well.

Senor and Singer tell thier important and instructive story of why Israel is the Start-Up Nation in an entertaining and compelling manner. Told through a combination of intelligent, compelling narative, and interviews with the young nation's political and business leaders, entrepreuners all, it's a quick read that leaves the reader wanting more. Other nations, large and small, have much to learn from the Israeli experience and Senor's and Singer's telling of this story.

What a refreshing piece of work. Not only is it an insightful easy to read piece but it opens ones mind to the positive impact of this small land. When we think of what comes out of the Mid-East- this is not the run of the mill values lesson but somthing which directly impacts our standard of living. It gives a differenct appreciation of what a "miracle" looks like.

Israel in a new light

As a serial entrepreneur, VC and angel investor, and teacher of entrepreneurship for many years, I am enthralled by "Startup Nation". It is a fascinating story of how Israel has succeeded disproportionately to its size and certainly to its geographic situation. It teaches valuable and unique lessons about region building and industry building. The principles of the country that stimulate individual entrepreneurial behavior in the military, in agriculture, and especially in high technology are lessons for all. I have shared the book with several leaders of industry and finance who have seen it as a remarkably interesting read.
Congratulations to the authors.

Edward Roberts
Professor of Management of Technology, MIT Sloan School of Management
Founder and Chair, MIT Entrepreneurship Center

Israel is sand with lots of USA tax money. A stggering amount of money taken from the people of the USA and given for almost nothing in etrurn. Now we are supposed to be fed that israel is a tek startup machine? bah!! With whoose cash? bahh!! Much like japan they are spoon fed. Then USA governmetn punishes domestic comanies with uge union labor cost and legal costs and wonder why results are not consumer friendly. So basic and stupid.

This book showed me another side to the whole middle east story. It's not just wars and terrorism. There are vibrant, creative, and entrepreneurial activities going on that more people should be aware of.
Also, a great read for anyone thinking about creating a new business.