Building a Resilient Region

By Aviva Steinberger, Director of Innovation Diplomacy at Startup Nation Central

re·sil·ience /rəˈzilēəns/ noun  

1. The capacity to withstand or to recover quickly from difficulties; toughness.  
2. The ability of a substance or object to spring back into shape; elasticity.

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How do you know if something is resilient?
You test it – again and again and again.

The Israeli innovation ecosystem, the ‘Startup Nation’, is no stranger to difficulty. It is well poised to withstand, recover, and thrive, even now, as we fight the ugliest terror and evil.  

However, the new relationships we’ve built in the region in the last three years, in the context of the Abraham Accords and normalization, are still vulnerable. Relationships grounded in tech and economic collaboration have held so much promise for a prosperous future in our shared corner of the world. Robust business ties, academic exchange, knowledge sharing, and scalable tech solutions have forged close personal ties across the region. Tested now more than ever, these relationships are the key to building a resilient, innovative region and the reason why my colleagues and I traveled to COP28 in Dubai – despite our reservations and concerns.  

The Israeli economy withstands crisis and conflict. A recent analysis by Startup Nation Central shows that after Operation Protective Edge of July-Aug 2014, the Israeli economy not only showed resilience during the conflict but also continued to grow twice as much as the OECD average – 4% compared to 2% after the conflict. Of the ~290 Israeli companies that raised funds in H2 2014, 36% later had a successful exit, compared to ~30% in the preceding halves. And 2014 is not an isolated case.  

In conflicts before and after Protective Edge, and during COVID-19, the Israeli tech ecosystem demonstrated resilience. The current war with Hamas is not just another round of conflict and over 120 hostages are still held in Gaza with no information as to their wellbeing. But embedded in the DNA of Israeli innovators is often-tested resilience. This is why numerous countries in the region recognize that collaboration with Israeli tech offers opportunities for their economies and they continue to show interest in working with Israeli companies despite recent events.   

Partnering with the Israeli tech ecosystem brings a wealth of knowledge on building strong ecosystems, raising the next generation of local entrepreneurs, and partnering on tech solutions to challenges such as water security, agriculture, and energy.

During our time at COP28, we were initially concerned about how other attendees would receive our delegation, but this proved to be a non-issue. The openness and interest in Israeli solutions allowed us to strengthen existing ties and create new relationships with global partners, bring visibility to Israeli startups and the resilient Israeli ecosystem, and generate momentum for our Climate Solutions Prize initiative in partnership with JNF-Canada and KKL.  

For the second year in a row, this competition brings Israeli startups with impactful climate solutions to meet specific industry challenges. It is a platform that propels forward-thinking startups into the global arena, enabling them to contribute significantly to the fight against climate change. By providing these startups with the necessary resources and exposure, CSP plays a crucial role in fostering innovation and practical solutions in the realm of climate technology. Following the attendance of several CSP finalists at COP28, the winners of the Israeli Startup Track will be announced in February 2024. 

Since October 7, many delegations, conferences, and programs designed to concretize business partnerships have been put on hold. However, our shared economic aspirations and hope for a brighter future for the region persist.  Personal ties and actual friendships between people that just three years ago would not have been possible are our hope, and this hope was reinforced at COP28.  

As Bahrain’s Finance Minister Sheikh Salman bin Khalifa al-Khalifa emphasized at an investment conference in Saudi Arabia: “It’s extremely important in the region that we continue to build bridges”, and not let the Israel-Hamas war interrupt economic integration in the region. He continued that some want to build and others seek to destroy:

“The people who should write the future are the builders in the region.”

We look forward to deepening our ties with our partners and friends across the region. Together we will create a forward-thinking, entrepreneurial, resilient future for our region – now more than ever.