Israel’s Hi-Tech Boom Is Thanks to Its Military Intelligence

Unit 8200, Israel’s ‘GCHQ’, has spawned more technology millionaires than many business schools:

Until a decade ago, Unit 8200 was a secret. Then it starred in the book Start-Up Nation, which chronicled Israel’s emergence as a hi-tech powerhouse with more venture capital investment per person than anywhere in the world and the largest number of Nasdaq-listed companies after the US and China. Three years ago, 8200 alumni decided to emerge from the shadows and offer their expertise to other young Israeli entrepreneurs.

The result was the 8200 entrepreneurship and innovation support program (EISP), a five-month hi-tech incubator in which unit alumni volunteer to mentor early-stage startups. So far, 22 of them have received funding totalling $21m (£13.5m) and employ 200 people, joining the 230,000 employees of Israel’s 5,000 tech companies that earn $25bn a year – a quarter of Israel’s total exports.

Nir Lempert, a reserve colonel, former deputy commander of Unit 8200 and chairman of its alumni association, says the unit handpicks the brightest teenagers in the country then trains them to solve problems in multidisciplinary teams using methods usually associated with business, not battles. They are encouraged to think differently. “The central mission of the unit is to save lives, to prevent terror and other attacks,” says Lempert. “We teach our people that the mission is so important that there is no possibility of failure.”

The 8200 legend attracts increasing numbers of young Israelis into IDF tech units. Mamram, the main IT support unit of the IDF, now offers a six-month pre-army course at its headquarters base in a suburban street on the outskirts of Tel Aviv. From dawn into the night, recruits study programming skills, teamwork, project management and – most important – how to be creative. It’s the ultimate startup boot camp.

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Posted by on August 16th, 2013 at 10:15 pm


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