IBM, Intel, Motorola, Microsoft and Novell are just a few of the worlds leading IT multinationals which have a common competitive advantage : they have established foreign subsidiaries and research and development centres in Israel.

Israeli industry is so firmly based in high technology and so highly computerised that software has always comprised a relatively large part of the country's industrial production. Especially in sectors such as electronics and telecommunications, the built in software component typically makes up one third of the added value. However, in the last few years, stand-alone software, both for consumer and business applications, has become an import industrial sector in it own right, and was Israel's fastest growing export industry in 1998.

Just last year, the total exports of the Hi-Tech and Electronic Industry from Israel grew by more than 15% and exceeded $US8 billion. Out of that record growth, the most remarkable developments occurred in the software industry. Software exports grew 50% in 1998 to total $US1.5 billion.

In other IT&T areas, Telecommunication exports grew by more than 20% ( $2.7 billion ) whilst medical electronics had a growth of more than 33% (480 millions). 38% of these exports are to North-America, 37% to Europe, 15% to Asia and 10% to Latin America and Africa.

The ability to solve complex problems stems from Israel's impressive human resources. The population are highly educated, with 20% having university degrees (ranking Israel 3rd in the industrialised world behind the US and the Netherlands), and with 12 % of the population holding advanced degrees. Further to this, there are 135 scientists and technicians per 10,000 workers, more than any other developed country (USA has 80, and Australia has approximately 55).

Israel's support of R&D in the IT field, through direct grants, promotion of technological incubators and assistance to existing academic and scientific institutions also comprise an important aspect of the Israeli IT industries past, present and expected future successes.