Start-up Nation

1

The information in this passage is largely drawn from an interview with Shimon Peres, president of Israel, December 2008; and interviews with Shai Agassi, founder and CEO of Better Place, March 2008 and March 2009.

2

Shai Agassi’s blog, “Tom Friedman’s Column,” July 26, 2008, http://shaiagassi.typepad.com/.

3

The information about Better Place is largely drawn from interviews with Shai Agassi.

4

Daniel Roth, “Driven: Shai Agassi’s Audacious Plan to Put Electric Cars on the Road,” Wired, vol. 16, no. 9 (August 18, 2008).

5

Haim Handwerker, “U.S. Entrepreneur Makes Aliyah Seeking ‘Next Big Invention,’ ” Haaretz, August 28, 2008.

6

Israel Venture Capital Research Center, www.ivc-online.com.

7

Authors’ calculations based on venture capital data from Dow Jones, VentureSource.

8

Dow Jones, VentureSource.

9

Donna Rosenthal, The Israelis: Ordinary People in an Extraordinary Land (New York: Free Press, 2005), p. 111.

10

Standard of living comparative data from www.gapminder.com.

11

Mark Twain, The Innocents Abroad: or, The New Pilgrims’ Progress (Hartford: American Publishing Company, 1870), p. 488.

12

Interviews with Gidi Grinstein, founder and president, Reut Institute, May and August 2008.

13

Interview with Eric Schmidt, chairman and CEO, Google, June 2009; Maayan Cohen and Reuters, “Microsoft CEO, in Herzliya: Our Company Almost as Israeli as American,” Haaretz, May 21, 2008.

14

“The Global 2000,” Forbes.com, March 29, 2007; http://www.forbes.com/lists/2007/18/biz_07forbes2000_The-Global-2000_Ind Name.html; and “Recent International Mergers and Acquisitions,” http://www.investinisrael.gov.il/NR/exeres/F0FA7315-4D4A-4FD CA2FA-AE5BF294B3C2.htm; and Augusto Lopez-Claros and Irene Mia, “Israel: Factors in the Emergence of an ICT Powerhouse,” http://www.investinisrael.gov.il/NR/rdonlyres/61BD95A0-898B-4F48-A795-5886 B1C4F08C/0/israelcompleteweb.pdf, p. 8. Among the top fifty software and technology companies of the two thousand largest public companies listed on Forbes, almost half have acquired Israeli companies or have opened an R&D center in Israel.

15

Paul Smith, senior vice president of Philips Medical, quoted in Invest in Israel, “Life Sciences in Israel: Inspiration, Invention, Innovation” (Israel Ministry of Industry, Trade and Labor, Investment Promotion Center, 2006).

16

Interviews with Gary Shainberg, vice president for technology and innovation, British Telecom, May and August 2008.

17

Interview with Jessica Schell, vice president, NBC Universal, Inc., April and June 2008.

18

David McWilliams, “We’re All Israelis Now,” April 25, 2004, http://www.davidmcwilliams.ie/2004/04/25/were-all-israelis-now.

19

Background interview with senior eBay executive.

20

Curtis R. Carlson, CEO of Stanford Research Institute International, in “We Are All Innovators Now,” Economist Intelligence Unit, October 17, 2007.

21

John Kao, Innovation Nation: How America Is Losing Its Innovation Edge, Why It Matters and What We Can Do to Get It Back (New York: Free Press, 2007), p. 3.

22

Robert M. Solow, “Growth Theory and After,” Nobel Prize lecture, December 8, 1987, http://nobelprize.org/nobel_prizes/economics/laureates/1987/solow-lecture.html.

23

Interview with Carl Schramm, president of the Kauffman Foundation, March 2009.

24

Paths to Prosperity: Promoting Entrepreneurship in the Twenty-first Century, Monitor Company, January 2009.

25

Michael Mandel, “Can America Invent Its Way Back?” BusinessWeek, September 11, 2008.

26

Information in the following section is taken from interviews with Scott Thompson, president, PayPal, October 2008 and January 2009; Meg Whitman, former president and CEO of eBay, September 2008; and Eli Barkat, chairman and cofounder, BRM Group, and seed investor in Fraud Sciences, January 2009.

27

Leo Rosten, The Joys of Yiddish (New York: McGraw-Hill, 1968), p. 5.

28

Loren Gary, “The Right Kind of Failure,” Harvard Management Update, January 1, 2002.

29

Background interview with Israeli Air Force trainer, May 2008.

30

Paul Gompers, Anna Kovner, Josh Lerner, and David S. Scharfstein, “Skill vs. Luck in Entrepreneurship and Venture Capital: Evidence from Serial Entrepreneurs,” working paper 12592, National Bureau of Economic Research, October 2006, http://imio.haas.berkley.edu/williamsonseminar/scharfstein041207.pdf.

31

Eric Weiner, The Geography of Bliss: One Grump’s Search for the Happiest Places in the World (New York: Twelve, 2008), p. 163.

32

Ian King, “How Israel Saved Intel,” Seattle Times, April 9, 2007.

33

Shahar Zadok, “Intel Dedicates Fab 28 in Kiryat Gat,” Globes Online, July 1, 2008.

34

Michael S. Malone, Infinite Loop: How Apple, the World’s Most Insanely Great Computer Company, Went Insane (New York: Doubleday Business, 1999); quoted in “Inside Intel: The Art of Andy Grove,” Harvard Business School Bulletin, December 2006.

35

David Perlmutter in “Intel Beyond 2003: Looking for Its Third Act,” by Robert A. Burgelman and Philip Meza, Stanford Graduate School of Business, 2003.

36

Interview with Shmuel Eden, vice president and general manager, Mobile Platforms Group, Intel, November 2008.

37

Ian King, “Intel’s Israelis Make Chip to Rescue Company from Profit Plunge,” Bloomberg.com, March 28, 2007.

38

Eliot A. Cohen, Supreme Command: Soldiers, Statesmen, and Leadership in Wartime (New York: Free Press, 2002), p. 144.

39

Dov Frohman and Robert Howard, Leadership the Hard Way: Why Leadership Can’t Be Taught and How You Can Learn It Anyway (San Francisco: Jossey-Bass, 2008), p. 7.

40

This passage is based on Ian King, “Intel’s Israelis Make Chip to Rescue Company from Profit Plunge,” Bloomberg.com, March 28, 2007.

41

“Energy Savings: The Right Hand Turn,” video presentation by John Skinner, Intel Web site, http://video.intel.com/?fr_story=542de663c9824ce580001de5fba31591cd5b5cf3&rf=sitemap.

42

Interview with Shmuel Eden.

43

Epigraph: Interview with Eric Schmidt.

44

Interview with Abraham Rabinovich, historian, December 2008.

45

Azriel Lorber, Misguided Weapons: Technological Failure and Surprise on the Battlefield (Dulles, Va.: Potomac Books, 2002), pp. 76–80.

46

Interview with Michael Oren, senior fellow, Shalem Center, May 2008.

47

Interview with Edward Luttwak, senior associate, Center for Strategic and International Studies, December 2008.

48

This section is based on an interview with Major Gilad Farhi, commander, Kfir infantry unit, IDF, November 2008.

49

Interview with Brigadier General Rami Ben-Ephraim, head of Personnel Division, Israeli Air Force, November 2008. The name of the pilot is fictitious since the IDF does not allow publication of names of most pilots.

50

Interview with Major General (res.) Aharon Zeevi-Farkash, former head of 8200, IDF, May 2008.

51

Interview with Frederick W. Kagan, military historian and resident scholar, American Enterprise Institute for Public Policy Research (AEI), December 2009.

52

Interview with Nathan Ron, attorney and IDF Lieutenant Colonel (res.), Ron-Festinger Law Offices, December 2008.

53

Interview with Amos Goren, venture partner, Apax, January 2009.

54

Amos Oz, speech at the Israeli Presidential Conference, Jerusalem, May 14, 2008.

55

Interview with Michael Oren.

56

Interview with Lieutenant General (res.) Moshe Yaalon, Likud member of Knesset and former chief of staff, IDF, May 2008.

57

Information in this section is from Patrick Symmes, “The Book,” Outside, August 2005; and an interview with Darya Maoz, anthropologist, June 2009; and an interview with Dorit Moralli, owner, El Lobo restaurant and guesthouse in La Paz, Bolivia, March 2009.

58

Aaron J. Sarna, Boycott and Blacklist: A History of Arab Economic Warfare Against Israel (Totowa, N.J.: Rowman & Littlefield, 1986), appendix.

59

Chaim Fershtman and Neil Gandal, “The Effect of the Arab Boycott on Israel: The Automobile Market,” Rand Journal of Economics, vol. 29, no. 1 (Spring 1998), p. 5.

60

Christopher Joyner, quoted in Aaron J. Sarna, Boycott and Blacklist: A History of Arab Economic Warfare Against Israel, p. xiv.

61

Sarna, Boycott and Blacklist, pp. 56–57.

62

Interview with Orna Berry, venture partner, Gemini Israel Funds, January 2009.

63

Interview with Gil Kerbs, venture capitalist and contributor to Forbes, January 2009.

64

Interview with Edward Luttwak.

65

Interview with Alex Vieux, CEO of Red Herring, May 2009.

66

Interview with David Amir (fictitious name), August 2008.

67

Interview with Gil Kerbs, venture capitalist, January 2009.

68

Interview with Gary Shainberg, vice president for technology and innovation, British Telecom, August 2008.

69

IMD World Competitiveness Yearbook (Lausanne, Switzerland: IMD, 2005).

70

Interview with Mark Gerson, executive chairman, Gerson Lehrman Group, January 2009.

71

Interview with Tal Keinan, cofounder KCPS, May 2008.

72

Interview with Yossi Vardi, angel investor, May 2008.

73

Background interview with U.S. Army recruiter, January 2009.

74

David Lipsky, Absolutely American: Four Years at West Point; and interview with Lipsky in March 2009.

75

Information from this passage is largely based on an interview with Colonel (res.) John Lowry, general manager at Harley-Davidson Motor Company, November 2008.

76

Interview with Jon Medved, CEO and board member, Vringo, May 2008.

77

This experience prompted the army leadership to pursue a proactive public relations campaign to bridge the civilian-military divide, which included reaching out to Rolling Stone and offering access to a West Point class. This effort culminated in David Lipsky’s book Absolutely American. This passage is also based on author interview with General John Abizaid, May 2009.

78

Interview with Tom Brokaw, author, The Greatest Generation, April 2009.

79

Interview with Al Chase, corporate executive recruiter and founder, White Rhino Partners, February 2009.

80

Interview with Nathaniel Fick, author of One Bullet Away, March 2008.

81

Interview with Brian Tice, captain (res.), U.S. Marine Corps, February 2009.

82

CIA, “Field Listing—Military Service Age and Obligation,”The 2008 World Factbook.

83

Mindef Singapore, “Ministerial Statement on National Service Defaulters by Minister for Defence Teo Chee Hean,” January 16, 2006.

84

Amnon Barzilai, “A Deep, Dark, Secret Love Affair,” http://www.israelforum.com/board/archive/index.php/t-6321.html.

85

Mindef Singapore, “Speech by Prime Minister Goh Chok Tong at the 35 Years of National Service Commemoration Dinner,” September 7, 2007.

86

BBC News, “Singapore Elder Statesman,” July 5, 2000, http://news.bbc.co.uk/2/hi/programmes/from_our_own_correspondent/820234.stm; retrieved November 2008.

87

Quoted in James Flanigan, “Israeli Companies Seek Global Profile,” New York Times, May 20, 2009.

88

Interview with Laurent Haug, founder and CEO, Lift Conference, May 2009.

89

Interview with Tal Riesenfeld, founder and vice president of marketing, EyeView, December 2008.

90

The information from this passage is largely taken from Michael A. Roberto, Amy C. Edmondson, and Richard M. J. Bohmer, “Columbia’s Final Mission,” Harvard Business School Case Study, 2006; Charles Murray and Catherine Bly Cox, Apollo (Birkittsville, Md.: South Mountain Books, 2004); Jim Lovell and Jeffrey Kluger, Apollo 13 (New York: Mariner Books, 2006); and Gene Kranz, Failure Is Not an Option: Mission Control from Mercury to Apollo 13 and Beyond (New York: Berkley, 2009).

91

Michael Useem, The Leadership Moment: Nine True Stories of Triumph and Disaster and Their Lessons for Us All (New York: Three Rivers, 1998), p. 81.

92

Roberta Wohlstetter quoted in Michael A. Roberto, Richard M. J. Bohmer, and Amy C. Edmondson, “Facing Ambiguous Threats,” Harvard Business Review, November 2006.

93

Interview with Yuval Dotan (fictitious name), IAF fighter pilot, May 2008.

94

Interview with Edward Luttwak.

95

Interview with Eliot A. Cohen, director of the Strategic Studies Program, Paul H. Nitze School of Advanced International Studies, Johns Hopkins University, January 2009.

96

Lieutenant Colonel Paul Yingling quoted in Thomas E. Ricks, “A Brave Lieutenant Colonel Speaks Out: Why Most of Our Generals Are Dinosaurs,” Foreign Policy, January 1, 2009, http://ricks.foreignpolicy.com/posts/2009/01/22/a_brave_colonel_speaks_out_why_most_of_our_ generals_are_dinosaurs.

97

Lieutenant Colonel Paul Yingling (United States Army), “A Failure in Generalship,” Armed Forces Journal, 2007, http://www.armed forcesjournal.com/2007/05/2635198.

98

Interview with Eliot Cohen.

99

Giora Eiland, “The IDF: Addressing the Failures of the Second Lebanon War,” in The Middle East Strategic Balance 2007–2008, edited by Mark A. Heller (Tel Aviv: Institute for National Security Studies, 2008).

100

Quote identified from interview with Carl Schramm, March 2009.

101

William J. Baumol, Robert E. Litan, and Carl J. Schramm, Good Capitalism, Bad Capitalism, and the Economics of Growth and Prosperity (New Haven: Yale University Press, 2007); and Carl Schramm, “Economic Fluidity: A Crucial Dimension of Economic Freedom,” in 2008 Index of Economic Freedom, edited by Kim R. Holmes, Edwin J. Feulner, and Mary Anastasia O’Grady (Washington, D.C.: Heritage Foundation, 2008), p. 17.

102

Central Bureau of Statistics (Israel), “Gross Domestic Product and Uses of Resources, in the Years 1950–1995,” in Statistical Abstract of Israel 2008, no. 59, table 14.1, http://www.cbs.gov.il/reader/shnaton/templ_shnaton_e .html?num_tab=st14_01x&CYear=2008.

103

Howard M. Sacher, A History of Israel: From the Rise of Zionism to Our Time, 2nd ed. (New York: Knopf, 1996), p. 30.

104

“Yishuv,” in Encyclopedia Judaica, 2nd ed., vol. 10, p. 489.

105

Quoted in Time/CBS News, People of the Century: One Hundred Men and Women Who Shaped the Last Hundred Years (New York: Simon & Schuster, 1999), p. 128.

106

Leon Wieseltier, “Brothers and Keepers: Black Jews and the Meaning of Zionism,” New Republic, February 11, 1985.

107

Quoted in Meirav Arlosoroff, “Once Politicians Died Poor,” Haaretz, June 8, 2008.

108

Daniel Gavron, The Kibbutz: Awakening from Utopia (Lanham, Md.: Rowman & Littlefield, 2000), p 1.

109

Bruno Bettelheim, The Children of the Dream: Communal Child-Rearing and American Education (New York: Simon & Schuster, 2001), pp. 15–17.

110

Alon Tal, Pollution in a Promised Land: An Environmental History of Israel (Berkeley: University of California Press, 2002), p. 219.

111

Alon Tal, “National Report of Israel, Years 2003–2005, to the United Nations Convention to Combat Desertification (UNCCD),” July 2006, http://www.unccd.int/cop/reports/otheraffected/national/2006/israel-eng.pdf.

112

Dina Kraft, “From Far Beneath the Israeli Desert, Water Sustains a Fertile Enterprise,” New York Times, January 2, 2007.

113

Information for this passage comes from Web sites of the Weizmann Institute, Yatir Forest Research Group, http://www.weizman.ac.il/ESER/People/Yakir/YATIR/Yatir.htm, and the Keren Kayemeth LeIsrael/Jewish National Fund, http://www.kkl.org.il/kkl/english/main_subject/globalwarming/israeli%20research%20has%20worldwide%20implications.x.

114

Reut Institute, “Generating a Socio-economic Leapfrog,” February 14, 2008, http://reut-institute.org/data/uploads/PDFVer/20080218%20-%20%20Hausman%27s%20main%20issues-%20 English.pdf.

115

Reut Institute, “Israel 15 Vision,” http://www.reut-institute.org/event.aspx?EventId=6.

116

Information in this passage is from Yakir Plessner, The Political Economy of Israel: From Ideology to Stagnation (Albany: State University of New York Press, 1994), pp. 11–31.

117

Ibid., p. 288.

118

David Rosenberg, “Inflation—the Rise and Fall,” Ministry of Foreign Affairs Web site, January 2001, http://www.mfa.gov.il.

119

CNNMoney.com, “Best Places to Do Business in the Wired World,” http://money.cnn.com/galleries/2007/biz2/0708/gallery.roadwarriorsspecial.biz2/11.html.

120

Orna Yefet, “McDonalds,” Yediot Ahronot, October 29, 2006.

121

Interview with Shlomo Molla, member of Knesset, Kadima Party, March 2009.

122

This covert rescue effort was aided by the Central Intelligence Agency, local mercenaries, and even Sudanese security officials. It was kept a secret largely for political reasons—in order to shield Sudan from any blowback from the Arab countries that would criticize the government for ostensibly aiding Israel. When the story of the airlift broke prematurely, the Arab countries pressured Sudan to stop the airlift, which it did. This left one thousand Ethiopian Jews stranded until U.S.-led Operation Joshua evacuated them to Israel a few months later.

123

Leon Wieseltier, “Brothers and Keepers: Black Jews and the Meaning of Zionism.”

124

Joel Brinkley, “Ethiopian Jews and Israelis Exult as Airlift Is Completed,” New York Times, May 26, 1991.

125

David A. Vise and Mark Malseed, The Google Story (New York: Delacorte, 2005), p. 15.

126

Interview with Natan Sharansky, chairman and distinguished fellow, Adelson Institute for Strategic Studies, Shalem Center, and founder of Yisrael B’Aliya, May 2008.

127

Interview with David McWilliams, Irish economist and author of The Pope’s Children, March 2009.

128

Interview with Erel Margalit, founder of Jerusalem Venture Partners (JVP), May 2008.

129

Interview with Reuven Agassi, December 2008.

130

While the new law was already rigid, the U.S. State Department directed consular officers overseas to become even stricter in their application of the “public charge” provision of immigration law. A public charge is someone unable to support himself or his family. At the beginning of the Great Depression, in response to a public outcry for tougher immigration laws, overseas consuls were told to expand the interpretation of the “public charge clause” to prohibit admission to immigrants who just might become public charges. The designation became a completely speculative process.

131

David Wyman, Paper Walls: America and the Refugee Crisis, 1938–1941 (New York: Pantheon, 1985), p. x.

132

Some scholars now believe that the lack of a safe haven for Jews seeking to leave Germany and other soon-to-be-occupied Nazi territories became an important factor in Nazi plans to exterminate the Jewish population of Europe. “The overall picture clearly shows that the original [Nazi] policy was to force the Jews to leave,” says David Wyman. “The shift to extermination came only after the emigration method had failed, a failure in large part due to lack of countries open to refugees.” From Wyman, Paper Walls: America and the Refugee Crisis, 1938–1941 (New York: Pantheon, 1985), p. 35.

133

In 1939, the British government created a ceiling of 10,000 Jewish immigrants per year into Palestine, with an additional allotment of 25,000 possible entries. It is true that in 1945, President Harry Truman requested a U.S. government investigation of treatment of Jewish displaced persons, many of whom were in facilities overseen by the U.S. Army. “The resulting report chronicled shocking mistreatment of the already abused refugees and recommended that the gates of Palestine be opened wide for resettlement,” writes Leonard Dinnerstein in America and the Survivors of the Holocaust (New York: Columbia University Press, 1986). After several unsuccessful attempts to persuade Great Britain to admit the Jews into Palestine, Truman asked Congress to pass a law to bring a number of these refugees to the States.

While Truman’s bill became law in 1948, the year of Israel’s founding, a group of legislators, led by Nevada senator Pat McCarran, manipulated the drafting of the bill’s language so that it actually had the effect of discriminating against Eastern European Jews. Ultimately, historian Leonard Dinnerstein estimates, only about 16 percent of those issued visas as displaced persons between July 1948 and June 1952 were Jewish. “Thus McCarran’s numerous tricks and ploys were effective,” notes Dinnerstein. “Jews who might otherwise have chosen the United States as their place of resettlement went to Israel.”

134

The document can be found at http://www.jewishvirtuallibrary .org/jsource/History/Dec_of_Indep.html.

135

Interview with David McWilliams, Irish economist and author of The Pope’s Children, March 2009.

136

This is not to suggest that there are not ethnic tensions among this very diverse country. Deep friction erupted between European Holocaust refugees and Jews from the Arab world as far back as the state’s founding. Sammy Smooha, today a world-renowned sociologist at the University of Haifa, was, like Reuven Agassi, an Iraqi Jewish immigrant who spent part of his childhood in a transit tent. “We were told not to speak Arabic, but we didn’t know Hebrew. Everything was strange. My father went from being a railroad official in Baghdad to an unskilled nobody. We suffered a terrible loss of identity. Looking back, I’d call it cultural repression. Behind their lofty ideals of ‘one people,’ they [the Jews of European origin] were acting superior, paternalistic.” Quoted in Donna Rosenthal, The Israelis: Ordinary People in an Extraordinary Land (New York: Free Press, 2005), p. 116.

137

Fred Vogelstein, “The Cisco Kid Rides Again,” Fortune, July 26, 2004; http://money.cnn.com/magazines/fortune/fortune_archive/2004/07/26/377145/index.htm; and interview with Michael Laor, founder of Cisco Systems Development Center in Israel, February 2009.

138

Marguerite Reardon, “Cisco Router Makes Guinness World Records,” July 1, 2004, CNET News, http://news.cnet.com/Cisco-router-makes-Guinness-World-Records/2100-1033_3-5254291.html?tag=nefd.top; retrieved January 2009.

139

Vogelstein, “The Cisco Kid Rides Again.”

140

Marguerite Reardon, “Cisco Sees Momentum in Sales of Key Router,” TechRepublic, December 6, 2004, http://articles.techrepublic.com.com/5100-22_11-5479086.html; and Cisco, press release, “Growth of Video Service Delivery Drives Sales of Cisco CRS-1, the World’s Most Powerful Routing Platform, to Double in Nine Months,” April 1, 2008, http://newsroom.cisco.com/dlls/2008/prod_040108c.html.

141

Interview with Yoav Samet, Cisco’s corporate business development manager in Israel, Central/Eastern Europe, and Russia/CIS, January 2009.

142

Interview with Yoav Samet.

143

Richard Devane, “The Dynamics of Diaspora Networks: Lessons of Experience,” in Diaspora Networks and the International Migration Skills, edited by Yevgeny Kuznetsov (Washington, D.C.: World Bank Publications, 2006), pp. 59–67. The quote is from p. 60.

144

Jenny Johnston, “The New Argonauts: An Interview with AnnaLee Saxenian,” July 2006, GBN Global Business Network, http://thenewar gonauts.com/GBNinterview.pdf?aid=37652.

145

The information in this passage is drawn from Anthony David, The Sky Is the Limit: Al Schwimmer, the Founder of the Israeli Aircraft Industry (Tel Aviv: Schocken Books, 2008; in Hebrew); and the interview with Shimon Peres. Regarding the accounts of Peres and Schwimmer flying over the Arctic tundra and Schwimmer’s meeting with Ben-Gurion in the United States, see also Shimon Peres, David’s Sling (New York: Random House, 1970).

146

Interview with Yoelle Maarek, former director, Google’s R & D Center in Haifa, Israel, January 2009.

147

Joel Leyden, “Microsoft Bill Gates Takes Google, Terrorism War to Israel,” Israel News Agency, 2006, http://www.israelnewsagency.com/microsoftgoogleisraelseo581030.html; retrieved November 2008.

148

Quote from a transcript of a documentary film interview conducted by the American Israel Public Affairs Committee (AIPAC) in 2007, provided to the authors.

149

Dan Senor is an investor in Vringo.

150

Interview with Alice Schroeder, author of The Snowball, 2008.

151

Uzi Rubin, “Hizballah’s Rocket Campaign Against Northern Israel: A Preliminary Report,” Jerusalem Issue Brief, vol. 6, no. 10 (August 31, 2006), http://www.jcpa.org/brief/brief006-10.htm.

152

Interview with Eitan Wertheimer, chairman of the board of Iscar, January 2009.

153

Dov Frohman with Robert Howard, Leadership the Hard Way: Why Leadership Can’t Be Taught—and How You Can Learn It Anyway (San Francisco: Jossey-Bass, 2008), pp. 1–16. All quotes from Frohman in this passage come from this book.

154

Interviews in this passage with senior Intel executive were on background, December 2008.

155

Interview with Eitan Wertheimer.

156

Jennifer Friedlin, “Woman on a Mission,” Jerusalem Post, April 20, 1997.

157

Interview with Orna Berry, partner in Gemini Israel Funds, and chairperson of several Gemini portfolio companies, January 2009.

158

Interview with Jon Medved, CEO and board member, Vringo, May 2008.

159

Interview with Yigal Erlich, founder, chairman, and managing partner of the Yozma Group, May 2008.

160

Gil Avnimelech and Morris Tuebal, “Venture Capital Policy in Israel: A Comparative Analysis and Lessons for Other Countries,” research paper, Hebrew University School of Business Administration and School of Economics, October 2002, p. 17.

161

The information about BIRD’s founding is from an interview with Ed Mlavsky, chairman and founding partner of Gemini Israel Funds, December 2008.

162

BIRD (Israel-U.S. Binational Industrial Research and Development Foundation), “BIRD Foundation to Invest $9 Million in 12 Advanced Development Projects in Life Sciences, Energy, Communications, Software and Nanotechnology,” http://www.birdf.com/_Uploads/255BOG08PREng.pdf.

163

Dan Breznitz, Innovation of the State (New Haven: Yale University Press, 2007), p. 60.

164

Ed Mlavsky in a PowerPoint slide presentation to Wharton MBA students, 2008.

165

Interview with Jon Medved.

166

Interview with Yigal Erlich.

167

Ibid.

168

Interview with Orna Berry.

169

Yossi Sela, managing partner, Gemini Venture Funds, http://www.gemini.co.il/?p=TeamMember&CategoryID=161&MemberId=197.

170

Interview with Erel Margalit.

171

David McWilliams, “Ireland Inc. Gets Innovated,” Sunday Business Post On-Line, December 21, 2008, http://www.sbpost.ie/post/pages/p/story.aspx-qqqt=DAVID+McWilliams-qqqs=commentandanalysis-qqqid=38312-qqqx=1.asp; retrieved January 2009.

172

Interview with Tal Keinan, cofounder of KCPS, May and December 2008.

173

Interview with Ron Dermer, former economic attaché, Embassy of Israel in United States, and senior adviser to Prime Minister Benjamin Netanyahu, September 2008.

174

Interview with Benjamin Netanyahu, prime minister of Israel, December 2008.

175

Epigraph: Quoted in Julie Ball, “Israel’s Booming Hi-Tech Industry,” BBC News, October 6, 2008, http://news.bbc.co.uk/2/hi/business/7654780.stm; retrieved January 2009.

176

John Kao, Innovation Nation (New York: Free Press, 2007).

177

Michael Bar-Zohar, Shimon Peres: The Biography (New York: Random House, 2007). p. 223. Also Reuters, “Peres Biography: Israel, France Had Secret Pact to Produce Nuclear Weapons,” May 30, 2007.

178

Michael M. Laskier, “Israel and Algeria amid French Colonialism and the Arab-Israeli Conflict, 1954–1978,” Israel Studies, June 2, 2001, pp. 1–32, http://muse.jhu.edu/journals/israel_studies/v006/6.2laskier.html; retrieved September 2008.

179

De Gaulle quoted in Alexis Berg and Dominique Vidal, “De Gaulle’s Lonely Predictions,” Le Monde Diplomatique, June 2007, http://monde diplo.com/2007/06/10degaulle; retrieved September, 2008.

180

Quoted in Berg and Vidal, “De Gaulle’s Lonely Predictions.”

181

“Israel’s Fugitive Flotilla,” Time, January 12, 1970, http://www.time.com/time/magazine/article/0,9171,942140,00.html.

182

Stewart Wilson, Combat Aircraft Since 1945 (Fyshwick, Australia: Aerospace Publications, 2000), p. 77.

183

Ruud Deurenberg, “Israel Aircraft Industries and Lavi,” Jewish Virtual Library, January 26, 2009, http://www.jewishvirtuallibrary.org/jsource/Society_&_Culture/lavi.html.

184

James P. DeLoughry, “The United States and the Lavi,” Airpower Journal vol. 4, no. 3 (1990), pp. 34–44, http://www.fas.org/man/dod-101/sys/ac/row/3fal90.htm.

185

Interview with Yossi Gross, director and cofounder of TransPharma Medical, and founder of many medical-device start-ups, December 2008.

186

Interview with Doug Wood, head of creative affairs, Animation Lab, May 2008.

187

Interview with Yuval Dotan (fictitious name), December 2008.

188

Manuel Trajtenberg and Gil Shiff, “Identification and Mobility of Israeli Patenting Inventors,” Discussion Paper No. 5-2008, Pinchas Sapir Center for Development, Tel Aviv University, April 2008.

189

John Russell, “Compugen Transforms Its Business,” Bio-ITWorld.com, October 17, 2005, http://www.bio-itworld.com/issues/2005/oct/bus-compugen?page:int=-1.

190

Interview with Ruti Alon, partner, Pitango Venture Capital, and chairperson, boards of BioControl, BrainsGate, and TransPharma Medical, December 2008.

191

Interview with Michael Porter, professor of economics, Harvard Business School, March 2009.

192

Rhoula Khalaf, “Dubai’s Ruler Has Big Ideas for His Little City-State,” Financial Times, May 3, 2007.

193

Michael Matley and Laura Dillon, “Dubai Strategy: Past, Present, Future,” Harvard Business School, February 27, 2007, p. 3.

194

Quoted in Assaf Gilad, “Silicon Wadi: Who Will Internet Entrepreneurs Turn to in Crisis?” Cataclist, September 19, 1998.

195

Saul Singer, “Superpower in Silicon Wadi,” Jerusalem Post, June 19, 1998.

196

Quoted in Steve Lohr, “Like J. P. Morgan, Warren Buffett Braves a Crisis,” New York Times, October 5, 2008.

197

Quoted in Eyal Marcus, “Israeli Start-ups Impress at TechCrunch50,” Globes Online, September 14, 2008.

198

James C. Collins and Jerry I. Porras, Built to Last: Successful Habits of Visionary Companies (New York: HarperCollins, 1997), pp. xix, 224.

199

Barbara W. Tuchman, Practicing History: Selected Essays (New York: Ballantine Books, 1982), quoted in Collins and Porras, Built to Last, p. xix.

200

Interview with Riad al-Allawi, Jordanian entrepreneur, March 2009.

201

Fadi Ghandour, in Stefan Theil, “Teaching Entrepreneurship in the Arab World,” Newsweek International, August 14, 2007; also available at http://www.gmfus.org/publications/article.cfm?id=332; retrieved March 2009.

202

Bernard Lewis, “Free at Last? The Arab World in the Twenty-first Century,” Foreign Affairs, March/April 2009. Similar observation has been made by Samuel Huntington.

203

Quoted in Christopher M. Davidson, Dubai: The Vulnerability of Success (New York: Columbia University Press, 2008), p. 166.

204

UNDP (United Nations Development Programme), The Arab Human Development Report, 2005: Towards the Rise of Women in the Arab World (New York: United Nations Publications, 2006).

205

Interview with Christopher M. Davidson, author of Dubai: The Vulnerability of Success, March 2009.

206

Quoted in Fannie F. Andrews, The Holy Land Under Mandate, vol. 2 (Boston: Houghton and Mifflin, 1931), p. 4.

207

Hagit Messer-Yaron, Capitalism and the Ivory Tower (Tel Aviv: Ministry of Defence Publishing, 2008), p. 82.

208

America-Israel Friendship League, “Facts About Israel and the U.S.,” http://www.aifl.org/html/web/resource_facts.html.

209

McKinsey & Company, “Perspective on the Middle East, North Africa and South Asia (MENASA) region,” July 2008. All of the data in this section comes from this study.

210

David Landes, The Wealth and Poverty of Nations (New York: Norton, 1999), pp. 412–13.

211

Quoted in Joanna Chen, “The Chosen Stocks Rally,” Newsweek, March 14, 2009, http://www.newsweek.com/id/189283.

212

Amiram Cohen, “Kibbutz Industries Also Adopt Four-Day Workweek,” Haaretz, March 12, 2009, http://www.haaretz.com/hasen/spages/1070086.html.

213

Interview with Benjamin Netanyahu, prime minister of Israel, December 2008.

214

Jennifer Evans, “Best Places to Work for Postdocs 2009,” The Scientist.com, vol. 23, no. 3, p. 47, http://www.the-scientist.com/bptw.

215

Interview with Dan Ben-David, Department of Economics, Tel Aviv University, June 2008.

216

Israel’s overall workforce participation level is 55 percent among adults, among the lowest in the West. The overall average is pulled down mainly by the extremely low workforce-participation levels of two minority groups: ultra-Orthodox Jews (40 percent participation) and Arab women (19 percent participation). These figures are cited in the Israel 2028 report, which recommends working to raise workforce participation rates of ultra-Orthodox Jews and Arab women to 55 percent and 50 percent, respectively, by 2028. U.S.-Israel Science and Technology Foundation, Israel 2028: Vision and Strategy for Economy and Society in a Global World, edited by David Brodet (n.p.: U.S.-Israel Science and Technology Foundation, March 2008).

217

Dan Ben-David, “The Moment of Truth,” Haaretz, February 6, 2007. Also reprinted with graphs on Dan Ben-David’s Web site: http://tau.ac.il/~danib/articles/MomentOfTruthEng.htm.

218

Helmi Kittani and Hanoch Marmari, “The Glass Wall,” Center for Jewish-Arab Economic Development, June 15, 2006, http://www.cjaed.org.il/Index.asp?ArticleID=269&CategoryID=147&Page=1.

219

Quoted in Yoav Stern, “Study: Israeli Arab Attitudes Toward Women Undergoing Change,” Haaretz, March 14, 2009, http://www.haaretz.com/hasen/spages/1008797.html.

220

U.S.-Israel Science and Technology Foundation, Israel 2028, p. 39.

221

Reut Institute, “Last Chance to Become an Economic Superpower,” March 5, 2009, http://reut-institute.org/en/Publication.aspx?PublicationId=3573.

222

Thomas Friedman speech at Reut Institute conference, Tel Aviv, June 2008.

223

Organisation for Economic Co-operation and Development (OECD) and European Patent Office, “Compendium of Patent Statistics,” 2008, http://www.oecd.org/dataoecd/5/19/37569377.pdf.

224

Interview with Antti Vilpponen, founder, ArcticStartup, January 2009.

225

Craig L. Pearce, “Follow the Leaders,” Wall Street Journal/MIT Sloan Management Review, July 7, 2008, http://sloanreview.mit.edu/business-insight/articles/2008/3/5034/follow-the-leaders/.

226

Quoted in Gallup, “Gallup Reveals the Formula for Innovation,” Gallup Management Journal, May 10, 2007, http://gmj.gallup.com/content/27514/Gallup-Reveals-the-Formula-for-%20Innovation.aspx.

227

Dov Frohman and Robert Howard, Leadership the Hard Way: Why Leadership Can’t be Taught—and How You Can Learn It Anyway (San Francisco: Jossey-Bass, 2008), p. 7.

228

Quoted in Ronald Bailey, “Post-Scarcity Prophet: Economist Paul Romer on Growth, Technological Change, and an Unlimited Human Future,” Reason Online, December 2001, http://www.reason.com/news/show/28243.html.

229

Ronald Bailey, “Post-Scarcity Prophet”; and Paul Romer, “Economic Growth,” both in The Concise Encyclopedia of Economics, edited by David R. Henderson (Indianapolis: Liberty Fund, 2007), http://www.stanford.edu/~promer/EconomicGrowth.pdf.