Israel superpower in the cybersecurity sector
Placed 2nd in the world just behind the United States, the State of Israel is one of the leading powers in the area of cybersecurity. In 2018, it exported more than 3 billion dollars worth of products and services linked to computer security, which is 5% of the world market.
This is not an insignificant happening. It is the result of several policies put in place by the leaders of the Jewish state since 2012.
Particular emphasis on research and development
In order to boost the IT sector and that of cybersecurity in particular, Israel devotes important resources to the research and development sector. The allocated budget is close to 4.3% of the annual GDP, which is twice the average of OCDE countries. For example, Canada only gives 1.6% of its GDP to this sector.
This massive investment policy has given rise to success stories like Waze, ICQ and Sodastream but the authorities are aware that all business ideas don’t result in growing companies. The possibility of failure is a fundamental principle and the risks are covered by private investment coming mainly from the United States or organisations such as the Jerusalem Venture Partners.
An ecosystem supported by obligatory military service
Israel is at the heart of a conflict zone with historic threats coming from nearby countries like Iran, Saudi Arabia and Syria. In order to ensure continuity in the area of defense and in the development of protection against cyber attacks, the country introduced obligatory military service. It lasts for a minimum of three years for young Israelis of 21 to 24 years of age.
These join special units like the cybersecurity one. At the end of their service, wishing to serve their country and interested in the cybersecurity sector, with the help of public companies they launch start up to create new innovative solutions. It’s because of this policy that now the country has prosperous, stock market listed companies such as Check Point Software Technologies and Cyber Ark, two of the ten leading cybersecurity companies in the world.
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Beer Sheva and Tel Aviv, cybersecurity cities
Twenty years ago, the State of Israel designated the desert city of Beer Sheva as the country’s cybersecurity capital. Since 2015 it hosts the office of the national cybersecurity authority, Ben Gurion University, the army cybersecurity centre and the CyberSpark business centre which has the strategic centres of large multinationals such as IBM and DELL.
There is also a designated centre in Tel Aviv. It is directed by Professor Isaac Ben Israel and the centre is a meeting place for many private and public sector researchers and also for businesses in the sector.
Every year, the University hosts Cyber Week, an event that attracts large international groups that wish to know more about the success of Israeli start ups.
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