Innovation Policy in the
The Israeli Case
Israel can win the difficult battle of survival only by developing painstakingly the
intelligence and expert knowledge of her young people in the field of technology.
———Albert Einstein, 1923
Economics and politics are symbiotic. People didn’t err by pushing the notion of a
high-tech infrastructure and joint projects. The results, until the second Intifada
broke out, spoke for themselves.
———Shimon Peres, 2003
In the past three decades, the list of factors recognized as contributing to national innovation capabilities has evolved. In many countries, the elements making up the innovation policy framework have become more complex and far-reaching, and this policy now covers a wide scope of issues ranging from basic research to trade competitiveness and intellectual property rights. The increasing importance of technology as a driving force in the economic performance of countries, along with changes in the global economic framework, have necessitated this broadening of scope and the formulation of new ways of enhancing innovation and its diffusion, especially for countries intent on shifting toward more knowledge-intensive economies. This chapter will explore how policies affecting innovation strategies can change a county’s high-technology