Tuesday, November 22, 2005

Israel's technology industry

Interesting story on Israel in the Economist. This particularly caught my eye:

The small size of Israel's home market is also, paradoxically, an advantage. While a British start-up, say, will look to its home market to get started, Israeli firms cannot. Accordingly, they look to America for customers, so that Israeli start-ups function as “mini-multinationals” from the off—and are instantly exposed to the world's most competitive high-tech market.

Although India is obviously a much larger market, I've heard a similar explanation describe the success of the IT market there as well. India tends to look outside of its borders in many respects and IT is no different. When it came time to develop an IT industry, entrepreneurs at the time knew they had to be international-facing from day 1.

Israel's technology industry | Punching above its weight | Economist.com

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