Why Israel Built So Many Startups
One of the clearest examples of Israeli ambition was Shai Agassi’s attempt to change the car industry. He believed electric cars would only spread if people stopped thinking of the battery as part of the purchase price. His idea was to let drivers buy the car but subscribe to battery use, much like a phone plan, while relying on a network of charging points and rapid battery-swap stations. It was a bold plan, and most car executives dismissed it at first.
What made the idea believable was the place where it was being tested. Israel was small, geographically compact, and cut off from easy travel across neighboring borders, which made it easier to imagine a national charging network. It also had many engineers and a culture that did not easily accept claims that something could not be done. Even difficult engineering problems, like how to remove and replace a heavy battery quickly, were approached with the same practical creativity used in military systems.
That story reflects a larger pattern. Israel is a tiny country with constant security pressure, few natural resources, and a small home market, yet it became one of the world’s most concentrated centers of entrepreneurship. Venture capital investment per person was far above that of much larger countries, and Israeli firms appeared on the NASDAQ in unusually high numbers. The core argument is that this success was not accidental. It grew from a mix of necessity, confidence, technical skill, and a habit of trying to solve problems at national scale.
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