High-Tech Firms’ Location Considerations within the Metropolitan Regions and the Impact of Their Development Stages

The determinants of firms' location choice have changed over time, in particular in the high-tech industry. Few studies that investigate the factors that influence firms' location decision distinguish between firms in their early stages of life cycle and more established high-tech firms. This study identifies the considerations prioritized by high-tech firms in both categories in the process of choosing a location within a metropolitan region for establishing or relocating their business. The intra-metropolitan competition for high-tech plants was examined using data gathered through field surveys of managers of such firms in the Tel-Aviv metropolitan region. The findings shed light on the importance ascribed to internal and external factors in the decision on location made by the firms' managers.     

Public versus Private Technological Incubator Programmes: Privatizing the Technological Incubators in Israel

Private technological incubators began operating in Israel in 2000, and developed thanks to the rapidly growing private (venture) capital (VC) sector, which traditionally had not funded such projects. The present study examines the differences and similarities between two types of technological incubators—public and private. It addresses the question whether the need still exists for the Public Technological Incubators Programme (PTIP). Based on our empirical analysis and findings, the main conclusion is that private incubators cannot fully replace public incubators; even after the entry of the private sector into the area of technological incubator activity, there is still justification for the continuation of the PTIP. Private incubators tend to concentrate in selected fields, whereas public incubators sponsor a large variety of activities. The PTIP was found to provide answers to advancing national objectives, such promoting peripheral regions and providing special incentives to selected population groups (e.g. new immigrants) for whom such activities would otherwise be out of reach.     

The Evolution of Innovation Networks and Spin-off Entrepreneurship: The Case of RAD

Abstract

We conducted an in-depth analysis of an Israeli startup, RAD Bynet, founded in 1981, that has intentionally, through the vision of its founder, given rise to 129 other startups employing some 15,000 workers, and created a unique “cloud”. Through a survey of the existing firms, we sought to explore the nature of this ecosystem and to quantify the relationships that exist between the mother company and the enterprises that emerge from it. Our main findings were: (a) social and technological proximity encourages the tendency of the companies to maintain business relationships that probably contribute to knowledge exchange, while technological diversity drives innovation and startup formation; and (b) firms will choose to cooperate on the basis of a shared past and personal proximity relations, as well as technological proximity at a certain level; “viral clouds” of startups like the one we studied can thus intentionally be designed and developed.     

Going Global: Assessing Presidential Foreign Travel

Abstract

Since President Franklin Delano Roosevelt broke the “Ironclad Custom”—and especially following World War II—presidents have routinely traveled outside of the United States to visit other countries and meet foreign leaders and publics. Presidents are expected to engage in face-to-face diplomacy, but they must also be present and active in domestic politics. To balance these pressures, presidents need to be strategic and mindful of their limited political resources and the opportunities the political environment creates. How, then, do international and domestic political resources and opportunities affect the extent and frequency of foreign travel? To examine this question, we collected and analyzed a dataset of presidential foreign travel—number of trips, countries visited and days spent abroad—during the post-World War II period (1953–2016) and estimated the frequency of travel with a set of explanatory variables that capture U.S. foreign involvement as well as the domestic policy agenda and political incentives that affected presidents from Eisenhower to Obama. Our findings demonstrate that domestic policy and political incentives are strong determinants of presidential foreign travel.