I was fortunate enough to be raised and educated in Israel, the so-called “Start-up nation”. Now, I live in what is known as the “Lucky Country”, but if we here in Australia are so lucky, why are we so far behind in developing a leading technology ecosystem? With the decline in investment in the mining industry and a growing global trend of isolationism, I am left wondering, ‘‘Is our luck running out?’’
In the early 90s, Israel faced many of the same challenges that Australia confronts today. A gradual decline in primary and secondary industry jobs; in Israel’s case, predominantly agriculture and textile industries were affected, while in Australia, it has been the mining industry. Australia’s rapid population growth, fuelled mainly by immigration, is reminiscent of Israel’s population growth after an immigration influx two decades ago. So, how did Israel manage to turn these challenges into opportunities? And what can Australia learn from the Israeli experience that will enable us to join the ranks of the most innovative countries in the world?
Before we can determine what priorities and policies we should embrace, we must consider a few of the fundamental differences between the two countries.
Israel, itself, is a start-up. It was built out of a desert from nothing, with loose social structures and the perspectives and experiences of a diverse group of people from all corners of the globe. The diversity and lack of class system have fundamentally shaped the way Israelis operate. The Hebrew word ‘‘chutzpah’’ literally means ‘‘audacity’’, but with the right tonal delivery can also mean ‘‘brazenness’’. The same ‘‘full speed ahead’’ attitude we love about Australia’s most successful founders is found all across the Start-up nation. In Israel, speaking one’s mind (loudly), questioning everything (even your boss) and taking liberties is all the norm. Contrast this with Australia’s ‘‘tall poppy syndrome’’, and you find a very different type of business ecosystem.
Another Hebrew word also points to the character and priorities of the Israel people: ‘‘iltur’’, which means ‘‘improvisation’’. As a small country that is geopolitically challenged, Israelis have become conditioned to improvise, think on their feet and make things work. This ability to make quick decisions with imperfect information is a critical trait for start-up success.
That is not to say Australia has nothing going for it. With a favourable business environment, a world-class tertiary education system, geographic proximity to Asia and an increasingly diverse talent pool to choose from, we have the foundation to be an innovation hub.
So, how can we emulate Israel’s success while making the most of our own strengths?
In a changing world where many countries are turning their backs on globalisation and cosmopolitanism, Australia must resist its instinct to focus inward and instead, open itself up. We should be encouraging talented students who finish first-rate degrees with high marks to stay, without having to tie themselves up to employers via sponsored visas. If we make it easier and more attractive for bright young minds to stay and get involved in the start-up culture, we are all the beneficiaries.
Read the full article by Yanir Yakutiel at The Australian (subscriber only).