Israel's soaring software industry, producing $1 billion worth of products
annually, owes its success in part to government assistance programs and
private investments, but relies primarily on the talent and quality of the
country's 8,500 computer scientists and engineers.
As recently as 1984, software exports from Israel amounted to just $5
million. In the last decade, however, innovative products, nurtured by
government incentives and private investments, have led to an average
annual growth of more than 40 percent.
Today, Israel's software industry yields an annual $1 billion worth of
products. The soaring development in this field can be partially
attributed to external support systems: strategic programs designed to
encourage software development have been implemented by the Chief
Scientist's Office of the Ministry of Industry and Trade, and binational
funds have helped foster fledgling start-ups. In addition, many investors
worldwide have bought a share of Israeli software houses, either through
direct investments, or via stock markets and venture capital funds.
However, according to Amiram Shore, chairman of the Israel Association of
Software Houses, it is the talent and quality of the country's 8,500
computer scientists and engineers in over 300 software houses throughout
Israel that has resulted in these impressive accomplishments.
"These professionals bring a unique approach," he stresses, "which
combines standards of excellence with improvisation and originality to
develop leading-edge software products and packages and related hardware
accessories in such fields as multimedia, imaging, voice response, voice
recognition, artificial intelligence, object-oriented application
generators, data communications, CAD/CAM applications, courseware software
and Internet-related products."
The achievements of Israeli software houses include an innovative software
billing system for both conventional and cellular phones, created for a
major US telecom provider; a "firewall" product for Internet security,
which acts as a "gatekeeper" to keep out inappropriate intruders; novel
software solutions for retail stores and restaurants, providing
communication from point-of-sale to the store back office and head office;
and a powerful collaborative too, which enables participants in both local
and remote locations to view and interact with conferenced applications in
real- time.
Israel is acknowledged as a world center for software research,
development and production; thus, major multinational companies,
including IBM, Digital, Hewlett Packard and Motorola, have established R&D
facilities in Israel, Microsoft set up its first research center outside
of the US in Haifa.
Prestigious worldwide corporations counted among the clients of Israeli
software firms include Philips, Toshiba, AT&T, Southwestern Bell, Samsung,
Air France, Siemens, Club Mediterranean, Dunlop, Berlitz and the central
banks of France and Japan, to name but a few.
"From product conception through design, development and marketing,"
explains Mr. Shore, "Israeli software specialists exhibit entrepreneurship
and initiative which transform theoretical dreams into effective
software."
The country's universities have provided a stream of talented computer
science and system engineering graduates. In recent years, this reservoir
of technical expertise has been further enriched by the large number of
highly educated immigrants from the former Soviet Union.
Educational software is one of the newest and fastest growing niches in
the business: more than 20 Israeli companies specialize in producing
software for this growing field. For kindergartens, local enterprises have
formulated packages that develop visual and reflective thinking, a sense
of color, optical orientation and basic mathematical concepts. Other
advances include elementary and secondary school computer-aided language
and mathematics training programs. For the college graduate, there is
technological training software, computer integrated training systems,
turnkey training, teacher training and industrial training
applications.
The combination of high-quality computer engineers, entrepreneurial
ingenuity and international investment means that Israel's software
industry will continue to grow at impressive rates for years to come as
innovative packages, developed by dozens of start-ups, find markets
overseas for their unique products.