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Market perspectives and the current financial situation

Israel is a potential and growing market for Danish companies. It is one of the most innovative countries. Areas such life-science, information & communication technology (ICT), energy and environment are especially vibrant.

Israel is today a high tech source of power, which has led to high GDP growth. Israel’s GDP at purchasing power parity (PPP) almost equals the Danish GDP at PPP. Furthermore the GDP (PPP) per capita is around 35.000$ in Denmark while Israels GDP (PPP) per capita is around 28.000$. Due to the country’s high level of human capital and traditions of international cooperation, Israel is increasingly recognized as a player on the global economy and as an important and relevant cooperation partner for Danish companies. In Israel, the economic growth has been relatively strong which leads to increasing and improving opportunities for Denmark and Israel to do business and trade. Growth in Israel from mid-2003 to now has been on an average of 5% per year. The Israeli economy is in spite of the economic crisis recording positive growth.

The Israeli government focuses on bilateral R&D cooperation agreements as well as multi-lateral cooperation programs. This framework conditions for innovation makes a fertile ground for international cooperation in R&D, manufacturing and marketing.

The knowledgebase in Israel represented by a large concentration of talented and innovative people makes it an ideal place for knowledge sharing, investment and export. The economy is characterized by great entrepreneurship, new technologies and profitable business opportunities. This is why companies such as Microsoft, General Electric, Intel, Hewlett-Packard, Philips, IBM, Google etc. have chosen to increase their activities in Israel.

Israel can generally be described as a nation that emphasises start-ups. The country has the highest density of tech start-ups in the world. These start-ups attract more venture capital dollars per person than any other country. In comparison 2.5 times the U.S., 300 times Europe, 80 times India and 300 times China. Moreover, Israel has listed more companies on the tech-oriented NASDAQ than any country outside the U.S.
To illustrate the innovative competence, drive and entrepreneurial potential of Israel below is a short list supporting why Israel is a healthy investment today and tomorrow.

• In top 20 regards to the most competiveness countries*
• In top in relation to capacity for innovation.**
• In top in regards to entrepreneurship.**
• In top in relation to the quality of university education and scientific research institutions.**
• In top regards to availability of qualified engineers.*
• In top in relation to R&D investments.**
• In top in regards to highest per-capita rates of patens filed.**
• In top relation to the nature of competitive advantage.**

* IMD World competiveness Yearbook
** WEF Global Competitiveness Report.

The Embassy in Tel Aviv can help Danish companies with fast and efficient assistance on the interesting and competiveness Israeli market. Navigate to our different sector analysis’ and read more about the different sectors and opportunities for your company.