THE GIST of Editorial for UPSC Exams : 02 August 2019 (Innovation lessons from Israel )

Innovation lessons from Israel

Mains Paper 3: Economy
Prelims level : GII
Mains level : Israel innovations and economic impact

Context

• When the Global Innovation Index ranking was announced last week the expectations were high. India, many believed, would break into the top 50 league for the first time.
• It came close, ranked 52 among 130-odd economies.
• Its performance was commended as it topped the Central and South Asian region for the ninth consecutive year and its growth from 81st rank in 2015 to 52nd this year — is the fastest by any major economy.
• What is also significant is that India continues to outperform on innovation relative to its gross domestic product (GDP).

Focus on education

• Today, Israel spends 7 per cent of its GDP on education. Over 45 per cent of its adults complete tertiary education.
• Its investment in R&D is the highest in the world (4.2 per cent of its GDP) with a third of that going into universities.
• Israeli universities, today, top in patent applications in the US.
• Such is the quality of manpower that Israeli colleges produce, over 250 global companies including the likes of Facebook, Google, Apple, HP and Microsoft have set up their R&D labs in the country which also boasts one of the highest concentration of Nobel laureates on earth.
• Israel has the largest number of hi-tech startups per capita than any other country in the world. Tel Aviv houses the second largest startup eco-system after Silicon Valley.
• The hi-tech exports accounts for 45 per cent of its overall exports. Its Yozma venture funding plan and technological incubator programme are case studies across the world.
• Not many know that after the US and China, Israeli companies have the most representation in NASDAQ, with over 250 companies IPOing on the platform since 1980s.

Tech-heavy security

• To tackle the security issue that comes from being surrounded by enemies and constantly fighting terrorism, the country invested heavily in cutting-edge technologies. Today, the Israeli military is a national incubator and a significant catalyst for innovation. Stories about the famed Intelligence Corps Unit 8200 is legendary.
• With compulsory conscription every youth, based on talent and aptitude, gets exposed to the latest technology that the military uses.
• They are taught to work as a team, solve problems in a structured and disciplined manner.
• These qualities help them to come out and build successful enterprises. Check Point, the world’s largest cyber security company, is one such organisation.
• In fact, Israel controls as much as 10 per cent of the global cyber security market.
• Then there is the culture part. Forced to run, hide and fight in the past, Jews are natural risk-takers — an essential quality to become an entrepreneur.
• India too has its share of challenges when it comes to food, energy, water and national security.
• It badly needs to enhance sustainability and take healthcare to every nook and corner of the country. All of this needs to be done at a low cost.

Way forward

• Like Israel, India needs to invest heavily in education and R&D. Our investment in R&D is a paltry 0.7 per cent of GDP.
• Very little of this goes to universities considering that a bulk of public R&D goes into space, energy and defence sectors.
• China, another large economy, has managed to up its R&D investment from 1.3 per cent in 2006 to 2.18 per cent in 2018. So size is not an issue here. It is just the intent.
• Many experts have faulted India’s innovation that focusses on getting products and services to people at an affordable cost, rather than aiming for global leadership.
• They are wrong. Solving India’s challenge will eventually open opportunities for Indian enterprises globally. That is exactly what Israel did.

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Prelims Questions:

Q.1) Which of the following best describes the equation between rights and obligations?
(a) Citizens can only have rights, while state can have both rights and obligations.
(b) To not violate any right of a citizen is solely the obligation of his/her fellow citizens.
(c) Rights not only place obligations on the state, but also on every citizen.
(d) Only those rights of the citizens which have environmental aspects place obligations on them.

Ans: C
Mains Questions:
Q.1) How this tiny nation unleashed intellectual prowess to convert its challenges into competitive advantages?