According to the Global Green Economy Index (“CGE”) published in 2016, Israel was ranked fourth among green tech return on investment performance of its startups. The ranking, developed by US-based think-tank Dual Citizen, considers 37 different indicators, including domestic policy framework, to also evaluate other 26 countries. Ahead of Israel was Denmark (#1) followed by Germany and Sweden.
The GGE was one of the pioneers in compiling evidence recognizing the outperformance of green tech in Israel compared to other highly innovative nations. Paramount to the country’s success, lies supporting governmental policies in R&D via its incubators as well as increased research budget.
Among the leading technologies on the green tech space in Israel is recycled water, which is a key element sustaining the country’s agriculture success, as 70% of wastewater is recycled and used in farming and require efficient cleaning process.
Some of the leading startups driving the green tech space in Israel are Tal-Y Agriculture Solutions, which has developed technologies to grow more food with less water. Another interesting Israeli startup on this field is HomeBiogas, which created a self-assembled biogas system that turns kitchen waste into usable cooking gas and liquid fertilizer.
Alongside favorable government policies, venture capital availability is a major element sustaining the Israeli green tech ecosystem remarkable performance. However, that is hardly a surprise. Across sectors, Israel is the second most trusted venture capital ecosystem in the world, just behind the United States.
According to Yossi Shavit, Director of Bengis Center for Entrepreneurship and Innovation the overall competitive advantage of Israel in innovation is highly linked to the country’s history itself. Upon the settlement of Israel in its current territory in 1948, national security became a priority, and innovation, which is highly linked to sustaining outperformance and growth of a country, was placed at the core of the country’s developmental strategies. Naturally, the need to optimize the use of available resources constrained on a small territory turned out to be a priority, setting the perfect context in which green tech could thrive.
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Written by: Pedro Lopes Peixoto/Pauline Petitcolin