"It is not certain that we can continue being an industry that creates only start-ups. We must figure out how to create big industries," said Yozma Venture Capital founder and managing partner Yigal Erlich at the Herzliya Conference "R&D to Commercial and Economic Application as Part of National Policy" panel yesterday. Erlich is also deputy chairman of the National Council for Research and Civilian Development.
Erlich made his mark on Israeli high tech in 1993 when he founded Yozma, which leveraged venture capital investment in the country at the time. Since then, start-up has been a basic concept in Israeli industry.
Erlich's comments were made against the backdrop of the economic crisis and assessments that growth in the computer and telecommunications industry is declining. Since about 70% of all Israeli start-ups are in this industry, it will therefore be necessary to reconsider future directions in order to maintain growth.
Erlich said, "We create and sell start-ups, that's what we do in Israel. We should think how to defend this industry when growth slows."
Panelist Chief Scientist Dr. Eli Opper should have been the star, after the announcement the day before that his budget would be increased by $450million, even before the 2009 state budget has been approved. The increase comes after years of struggle with the Ministry of Finance over the Office of the Chief Scientist's budget.
Opper has frequently said in the past that he supports the sale of Israeli start-ups to foreign companies. Yesterday, he wondered how an industry would develop in Israel. His dilemmas touch on retaining know-how. "When I criticize the leakage of know-how from Israeli universities, I'm told that, in the US, scientists transfer know-how to industry and the result is the establishment of an industry in the US. My question is how to establish an industry in Israel?"
Published by Globes [online], Israel business news - www.globes-online.com - on February 4, 2009
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