Israeli high-tech companies generally gear most of their efforts towards the US, which has paid off for most start-ups in terms of cooperative ventures and exits. Europe has never been considered a major target. Israelis are not the only ones to think that the world is managed by the US and the Far East.

In a special report on Europe's innovation hotspots, "BusinessWeek" writes, "Europe may be known as the Old World, but these days it deserves credit for much that is new. As the continent continues to be transformed by the expansion of the EU and rising competition from China and India, it is harnessing its longstanding tradition of creativity to sharpen its economic edge."

"BusinessWeek" refers to the Global Innovation Index, developed at French business school INSEAD. The index gives prominence to European innovation. Half the top 10 countries and 12 of the top 20 countries in the index are in Europe. Israel is ranked 18th. "BusinessWeek" put Israel among the top 10 in its own evaluation of European innovation, as an innovation leader in technology and pharmaceuticals.

"BusinessWeek" writes, "Not blessed with oil reserves like many of its neighbors, Israel has constructed a powerful economy from the ground up with a pioneering tech sector, earning it the nickname "Silicon Wadi." The country boasts the highest concentration of high-tech companies in the world outside of Silicon Valley, the most Nasdaq-listed companies outside North America, pioneering facilities such as the Weizmann Institute of Science and Technion-Israel Institute of Technology, and the world's largest generic drug maker, Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA). Israel also hosts research and design centers for Microsoft, IBM, and Intel - as well as Motorola, which first set up shop here back in 1964."

"BusinessWeek" notes that INSEAD ranked Germany second place thanks to its engineering prowess; Britain is ranked third, due to the financial firepower of London and the fertile ideas flowing from the Oxford to Cambridge Arc, the world's second-largest destination for venture-capital investment after the Silicon Valley; France for its businesses, research centers, and educational institution clusters in healthcare, aeronautics, and microelectronics; Estonia scores for its large number of Internet applications start-ups; Spain, whose chefs have revolutionized contemporary cuisine; and Italy, which continues to pioneer apparel and furniture design.

Published by Globes [online], Israel business news - www.globes-online.com - on May 1, 2008

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