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Abstract

By any measure, Israel is a major economic success. A small, poor country at its birth in 1948, Israel today has reached Western European living standards. It is a hotbed of technology-based entrepreneurship, and has attracted $3 billion in venture capital investments in 2000, three times more than in 1999. Yet since 1970, Israel''s per capita income has not kept pace with that of four other small countries. In 2000, with per capita GDP of $18,000, Israel lags behind Singapore ($26,600), Finland ($28,100), Hong Kong ($23,400) and Ireland ($29,800) - despite several key competitive advantages Israel enjoys. Why? What can Israel learn from Ireland and Finland? And how should Israel alter its competitive strategy in order to catch up? If Israel were a business, how should it be run? This case shows how to analyse countries and their competitive strategies as businesses. A supplement ''Israel - Ireland - Finland: Why Does Israel Lag? Countries as Businesses: Update April 2002'' (202-023-4) is available to accompany this case.

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Abstract

By any measure, Israel is a major economic success. A small, poor country at its birth in 1948, Israel today has reached Western European living standards. It is a hotbed of technology-based entrepreneurship, and has attracted $3 billion in venture capital investments in 2000, three times more than in 1999. Yet since 1970, Israel''s per capita income has not kept pace with that of four other small countries. In 2000, with per capita GDP of $18,000, Israel lags behind Singapore ($26,600), Finland ($28,100), Hong Kong ($23,400) and Ireland ($29,800) - despite several key competitive advantages Israel enjoys. Why? What can Israel learn from Ireland and Finland? And how should Israel alter its competitive strategy in order to catch up? If Israel were a business, how should it be run? This case shows how to analyse countries and their competitive strategies as businesses. A supplement ''Israel - Ireland - Finland: Why Does Israel Lag? Countries as Businesses: Update April 2002'' (202-023-4) is available to accompany this case.

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