Determinants of Economic Growth in Israel

Israel, a small country in Asia, is the start-up nation, a technology hub, the second largest start-up ecosystem in the world, a leader in innovation and cutting-edge technologies. What are the key components of the dynamic innovation culture that have made the state of Israel one of the most important entrepreneurial and technology-driven economies in the world? This chapter analyzes the basis of this miracle. It describes the huge population increase due mainly to immigration, large injections of capital, technological progress and transition from basic production of growing citrus and polishing diamonds, to current state of the art technologies.