When my uncle goes hunting, he wears a giant orange coat complemented with matching pants. The only reason he wears such a ridiculous outfit is to avoid the risk of being hurt accidentally by another hunter. But why wear such a ridiculous outfit when this problem can be fixed using technology? During my interview, I learned that Yaron, my host father, found a solution. He developed the technology for a GPS device that tracks hunters and informs them of their proximity to each other in order to avoid friendly fire. And this technology is notjust used for hunters. The IDF can also use it to prevent accidents of their own.
Yaron used Israel’s accelerator program to accomplish this. Israeli entrepreneurs are given up to four hundred thousand dollars by the government to develop their companies. These accelerator projects have turned Israel into the technological powerhouse that it is today. Even though only one out of ten companies turns out to be successful, leaving the government open to a four million dollar loss, the fact that these projects continue shows the level of trust that Israel has in its entrepreneurs. This trust in its people has fueled the Israeli economy.
However, this is not the perfect system. Due to the security risks that Israel faces, the military patents must stay inside Israel. Although they could help other countries greatly, they must stay inside Israel to protect the small nation. Though this may seem like a lack of trust in foreign nations, it is only a desire to keep the Jewish homeland safe. Israel does share non-military patents with other nations throughout the world.
In AP Economics I learned that when investing, the higher the risk, the greater the reward. This rule applies to Israel’s investment in its people. Israel has taken the risk in its accelerator programs, and the reward is a booming economy.