2. Our Rationale
• The hi-tech industry is Israel’s engine of growth
• Israel spends more of its GDP on R&D than any
OECD country
• … Yet, Arab citizens do not participate
Integration of Arab citizens into the high-tech
industry is a prototype for a fair and just society in
Israel
2
4. Israeli hi tech is*…
• 3,000 tech companies
• Over 500 companies with yearly revenues over $20m
• 200 new start-ups created every year
• 3rd largest non-USA country on NASDAQ
• Comprises over 40% of Israel’s export
Civilian R&D Investments
Page 6 * Figures- Israeli Association of Electronics & Software Industries
5. The highest poverty rate in the OECD
Over 50% of Arab
families in poverty
Page 7
6. Israel has two economies
Arab economy Jewish economy
40% workforce participation 60% participating
21% of women work 57% working
5,419 NIS Average/capita income 8,086 NIS
1,000 employed in engineering positions 85,000 engineers
0 hi-tech industrial zones 15 zones
7. Arab Cities Need High-Tech
• Will advance economic sustainability:
– Municipal income
– Higher paid employment
– Increase employment rates (each hi-tech job creates 1-2
additional jobs)
– Retain higher education citizens
• Hi-tech requires relatively smaller infrastructure
investment
• Hi-tech is the strongest productive sector that can create
jobs
Tsofen is changing this reality by working with the
government, local authorities and companies
9
8. Our model is aligned with OECD
recommendations for Israel
• Improve employment and
training of Arab sector
• Invest more in public
infrastructure for Arab
population
• Ensure that existing public job
quotas for the disadvantaged
(esp Arabs and Ethiopians) are
met
Page 10
9. Tsofen’s model of operation 2012:
Nazareth hi-
Job tech center
Community Creation
Getting Building
Government
to Act
Train &
Place
BUZZZZ
2008:
25 engineers Arab professional community and grads
in Nazareth
Government Companies Municipalities
Page 11
10. Working With the Arab community
• Malakom for biz community & SU scene
• Hackathon for hi tech community
• Technical workshops for students
• Meetups for entrepreneurs community
14
11. Since Our Inception: Major Changes
• Arabs in high-tech have tripled to 1,000
• Nazareth transformed into a high-tech hub
• The high-tech industry is taking notice
“Israeli high-tech needs Arab Human Capital more
than Arab sector needs high-tech industry” Elisha Yanay, Chairman
of the Israeli Association of Electronic and Software Industries
• Government is engaged
• Media is committed
15
13. 2013: New Strategic Emphasis
• Government Advocacy & Cooperation
• Business Development & Job Creation
2013- 2018: Getting national
• Tsofen’s model to become national, hand in hand
with Israeli Government
• “Clean” industrial zones in Arab cities
2018 and up: closer and closer to a Shared Society
in Israel
• Applying Tsofen’s Model to new domains
Page 17
14. 2013 Projects
• Government advocacy & business
development
• Nazareth: advancing the leading hi tech
center of the Arab community
• Triangle Center: employment of women
• Mentorship program: from pilot to project
• Exposure to Industry: university workshops
Page 18
15. Government Advocacy & Bus Dev
• Rationale: There is a growing need for human capital in high-tech.
Arabs are the answer. Government budgets should be channeled to
infrastructure in Arab cities and industry support
• Activities: Recruiting a senior business development manager;
companies’ leaders with business models; position papers and
lobbying
• Outputs: 3-4 business models; 2 position papers; leveraging
government subsidies to employers; kick-starting a governmental
effort towards one hi tech park in an Arab city
• Prospects for Success: “Win Win” for all stakeholders; Success of
Tsofen model in Nazareth; growing need for human capital
• Budget 2013: $150,000
Page 20
16. Nazareth- advancing the leading hi tech center
of the Arab community
• Rationale: The successful and sustainable center in Nazareth is
Tsofen’s core operation, every advancement depends primarily on
its maintenance and advancement.
• Activities: maintaining the hi tech training and employment center;
keep on being the leading provider of placements to hi tech firms in
the region; bringing more companies to branch or outsource
projects to Nazareth; maintain relations with Nazareth municipality;
escort Amdocs in its branching activities ; keep the scene vibrant
• Outputs: 3 courses; 80-90 placements; 2 professional events; meet-
up forum(s) for Startups
• Prospects for Success: professional and financial sustainability for 4
years now; national BUZZ before and after Amdocs’ announcement
• Budget 2013: $600,000
Page 21
17. Triangle center, and women employment
• Rationale: A second successful Hi-Tech center in an Arab city will prove
the scalability of the Tsofen model
• Activities: Establish a Tsofen training office; Engage with initial interested
companies; Develop business models for companies; advise municipality;
special attention to women and hi tech support jobs
• Outputs: A functional training center with one class; Running 4 hi tech
support courses; and 1-2 hi tech course; Creating a database of at least
600 qualified Arab hi-tech support candidates from the region; bringing at
least 1 company to announce branching to the Triangle, and 2 more to
start a similar process
• Prospects for Success: A replication of our proven successful Nazareth’
model; A solid business value in an entry-level hi-tech center close to
leading companies headquarters; leveraging Government support through
current official programs
• Budget 2013: $320,000
Page 22
18. Mentorship program- from pilot to project
• Rationale: Leverage Tsofen’ large volunteer group to
support hundreds of young Arab professionals in their
entrance to the industry
• Activities: Create/mentor two groups of mentors and
mentees; match them; conduct workshop to assist during
work search and in first months of work
• Outputs: Scale capacity to support hundreds graduates in
job placement; decreasing drop-out rates during initial
work months; Increasing hi-tech
community's, accountability and responsibility to job
seekers;
• Success Prospects: Replicate “Olim Beyahd” successful
program; Tsofen’s large and involved volunteers group;
leverage the successful pilot program of 2012
• Budget: in 2012: $65,000
Page 23
19. Exposure to Industry- workshops in
Universities
• Rationale: Exposing Arab students to available employment in
hi-tech during their studies, assisting them to plan and
manage their career, thus increase motivation and decrease
dropout rates.
• Activities: Preparatory sessions; empowerment workshops;
provide mapping of the industry; lectures by senior and new
engineers; pprofessional Tours in Hi-Tech Companies
• Outputs: six monthly sessions in 3 universities
• Success Prospects: growing demand in the Universities for
such projects; a successful pilot in 2012
• Budget 2013: $50,000
Page 24
Editor's Notes
Israel is considered an economic miracle. In 1948, when it was founded, it had a standard of living far lower than any Western European country or that of the US. For instance, Israeli TV began broadcasting in 1968; in the seventies, most households did not have a phone line.Today, Israel’s investment in high tech has created an economic miracle. This is the cover of “start-up nation”, a book by Dan Senor and Saul Singer that takes a look at how Israel transformed itself through entrepreneurship, high-tech and government funded research and development. This book is a New York Times bestseller.
What I was just telling you about is plainly evident in the GDP growth numbers. Israel’s GDP per capita is number 27 in the world.
3rd bullet mention galil customers
Changing public discourseJoined forces with Malacom in the annual conventionExposed the Arab start-up scene to the pressFirst ever HackaThon in Arab community (with Google)Sami Saadi- 100 influential in Israel economy