Creating jobs through new vencap startup companies

[patslatt]

According to The Economist article Schumpeter: Fish out of water | The Economist Israel has come up with the best method for a government to foster new startup companies and create jobs. Its government venture capital fund,started with $100 million in 1992,attracted massive foreign venture capital and was sold off after only five years. It allowed foreign investors to make the decisions on what to invest in,as opposed to influencing or directing that. Israel now attracts as much venture capital as France and Germany combined and has more companies listed on the high tech oriented NASDAQ stock exchange in the US than both China and India combined.

Israel avoided many common mistakes of government venture capital funds,such as directing the investment into grandiose projects (Malaysia),giving money to crony startups (Norway),going it alone instead of partnering with private venture capital (Canada),spreading the funds regionally instead of allowing a focus on technology clusters (France) and discriminating against foreign venture capital (Japan).

The Irish government has set up a €500 million venture capital fund that hopes to emulate Israel's success. Let's hope it sticks closely to the Israeli formula. It should succeed,given that the Ireland's third level technology education system and the level of business expertise are stronger than Israel's in many respects. However,Israel has major competitive advantages both in its advanced military technology developed in close partnership with the US military and in the historical Jewish tradition of entrepreneurialism.

[Cellach]

I believe the property sector in the settlements is booming. A boom that will never end..

[patslatt]

I believe the property sector in the settlements is booming. A boom that will never end..

A comment unsuitable to Economics.

[toughbutfair]

Is there a way to team up entrepreuneurs with the thousands of people unemployed who may have experience in a particular sector? e.g. somebody with a technology idea with somebody who may have recently lost a job with intel?

[patslatt]

Is there a way to team up entrepreuneurs with the thousands of people unemployed who may have experience in a particular sector? e.g. somebody with a technology idea with somebody who may have recently lost a job with intel?

The entrepreneur could apply for funding to the government's new venture capital fund,maybe in partnership with a private venture capital fund or private investor.