1Israel,StartUpNationinLifeSciencesDrLaurentChoppeSeptember23,2016China-IsraelForumonMedical&LifeScienceInnovation&Investment2GeneralPopulation:8.5million20,770squarekilometers(China9,706,961sq.kmor467x)Urbanpopulation94%ParliamentarydemocracyCapital:JerusalemStrongMacroEnvironmentGDPUSD$306billion(39th)andpercapitaUS$38,004(25th)(1)GDPgrowthin2011of4.8%,2012of3.6%and2013of3.8%,2014Eof3.4%(2)Relativelylowunemployment4.9%(2)DecliningtrendoftotalgrossdebttoGDPof72.7%(2)S&PratingofA+IsraelHasanExport-OrientedDevelopedEconomyUpgradedtodevelopedfromemergingmarketstatus(MSCI)andamemberoftheOECDsince2010(3)Israelrankedasthe27thmostcompetitivecountryintheworld(4)FavorableFinancingEnvironmentIsraelcamethroughtheglobalfinancialcrisisingoodformIsraelibanksandbondmarketcontinuetobeliquidandofferhighlyfavorabletermstoqualitybusinessesandsponsorsEgyptJordan(1)Source:IMFReport,2014(2)Source:IsraeliBureauofStatistics,2015(3)Source:IVConline.(4)Source:WEFGlobalCompetitivenessReport2013-2014Countrysnapshot3IsraelCluster6.EntrepreneurialSpirit7.AttractiveInvestmentEnvironment2.GovernmentSupport3.TechnologySectorExpandingGloballyKeySuccessFactorsofIsrael’sTechnologyCluster4•JewishEducationStudies:QuestioningandChallenging;Pessah:Hagada•“TheIsraeliChutzpah”:Theabsenceofhierarchicalbarrierspromotesinnovationatalllevelsofafirm•Reactiontoisolationandlackofresources•Democracy-CultureofTransparency•MeltingPot:IsraeliImmigrantsfrommorethan90countries•Problem-solvingapproach•“AnetworkofstartupsinaStart-UpNation”:Israelhasthehighestamountofstart-upspercapitaintheworld•R&Dcenterswithworld-widerecognition•Israelisblessedwithanexceptionalentrepreneurialworkforce,ranked3rdintheworld(IMDindex)•Rankedin1stplaceforbusinessentrepreneurshipbyIMD(2009)IsraelEntrepreneurialSpirit45EducationandUniversities:leveragedbrainpower1408565533835353428252219NumberofEngineersPer10,000Employees(1)9.2%7.0%6.4%6.4%6.2%5.9%5.7%5.5%5.3%5.0%4.7%4.0%InvestmentinEducation%GDP(4)#1R&Dconcentration:Israelinvests4.2%ofitsGDPinR&D(1)#2educatedcountry:Largestnumberofacademicdegreespercapita(64per1000people)(1)Highestexpenditureoneducationintheworld(9.2%ofGDP)(2)12IsraelisNobelPrizelaureates,8withinthelastdecade(3)#3%workforceemployedinhightech(4)#2techecosystemintheworld(5)#1Devicepatentspercapita(6)1millionpeoplefromtheFSUemigratedtoIsraelsinceearly90s(20%ofengineersand3%ofscientists),representing16%oftheeconomicallyactivepopulation(7)(1)Source:MinistryofFinance,Israel,2013(2)Source:Technion,Israel'sInstituteofTechnology(3)Source:WorldbankReport2012(4)OECD,2012(5)StartupGenome,2012(6)WIPO,2014(7)MinistryofAbsorption,Israel,20126LIFESCIENCESResearchandmedicinehavealwaysbeenstrongInnovativecompanycreationwavecamelater93$111blnTECHNOLOGYPutIsraelontheglobalhigh-techmapinthe80sArmytechnology+government-initiatedVCindustrycompaniesonNASDAQ,3ndcountrybehindCanadaandChinacombinedmarketcapProvenabilitytocommercializeinnovation7Israelisfirstin…1stfirewallcompany1stinstantmessagessoftware1stmobilephone1stPentiumprocessor1stGIvideopill1stPET/CT1ststent1stFDA-approvedplantcell-basedrecombinanttherapeuticproteinmanufacturedinplantcells1st71stexoskeletonenablingparaplegicstowalk1stroboticspinesurgerysystem1stsocialnavigationapp1stselfdrivingtechnology8IsraelLifeSciencesIndustrySub-Sectors1,380activelifesciencescompaniesinIsrael317inbiopharma725inmedicaldevices53others285inhealthcareIT8Source:IsraelLifeSciencesIndustry,IATI2015Report9NotableLifeSciencesMultinationalR&DcentersinIsraelMultinationalswithlocalpresenceMarketingDevelopmentBD910IsraelLifeSciencesSector-Funding2014settheall-timerecordintheamountinvestedinthelifesciencessectorwith$801millioninvestedin167lifesciencescompaniesCapitalRaisedbyIsraeliLifeSciencesCompanies2005-2014($M)1011GovernmentsupportTheOfficeoftheChiefScientist(OCS)Incubatorsprogram:328lifesciencescompaniesbetween2005and2014GeneralIndustrialR&DGrantsTheMagnetProgram(Consortiumofacademiaandindustry)NofarProgram(AppliedAcademicResearch)TheKaminprogramoftheOCSisbridgingthegapbetweenappliedresearchandtheindustryTNUFAProgramwhichfocusesonlinkingindividualinventorsandinvestorsSource:OCSDuringthelastdecadetheOCSinvestedmorethan$100millionannuallyinthelifesciencessectorviaitsdifferentprograms1112CommercializationcompaniesinIsraelTechnologyTransferOffices(TTOs)TheTTOsplayamajorroleinthelifesciencesindustryinIsraelwithmanypatents,newstart-upsandlicensingagreementsinthefieldoriginatingfromtheeightresearchuniversitiesandelevenresearchinstituteandhospitals451originalpatentapplicationsin2013:51weresubmittedinIsraelThenumberoforiginalpatentapplicationsroseovertheperiod2008-2013by34%.Thedominantfieldsoftheoriginalpatentapplicationsweremedicines(24%),bio-technology(17%),andmedicalequipment(13%).In2012,lifesciencerelatedsubsectorscomprised56%ofallapplications,andin2013,about53%ofallapplications.CommercializationCompaniesinIsrael-NewPatentApplications,byfield,2012&201312Typesoflifesciencesprojectsavailableforlicensing13ForeigninvestorsarenowinthegameCapita