innovation - 3

innovation – 3 (Photo credit: nyoin)

Courbe diffusion innovation

Courbe diffusion innovation (Photo credit: Wikipedia)

Innovation and Evaluation

Innovation and Evaluation (Photo credit: cambodia4kidsorg)

An Innovation Competence Process Coming From K...

An Innovation Competence Process Coming From Knowledge Management (Photo credit: Alex Osterwalder)

English: weWant2 was built to make innovation ...

English: weWant2 was built to make innovation pervasive by stimulating and sustaining individual and collective creativity, making it possible, for the first time, to promote innovation as a sum of personal and group dynamics, moving from “manager’s-driven innovation” towards “everyone’s-driven innovation”. (Photo credit: Wikipedia)


MSI+Innovation-1 (Photo credit: Wikipedia)


Innovation is the application of better solutions that meet new requirements, inarticulated needs, or existing market needs. This is accomplished through more effective productsprocessesservicestechnologies, or ideas that are readily available to markets,governments and society. The term innovation can be defined as something original and, as consequence, new that “breaks in to” the market or into society. One usually associates to new phenomena that are important in some way. A definition of the term, in line with these aspects, would be the following: “An innovation is something original, new, and important – in whatever field – that breaks in to (or obtains a foothold in) a market or society.”[1]

While something novel is often described as an innovation, in economics, management science and other fields of practice and analysis it is generally considered a process that brings together various novel ideas in a way that they have an impact on society.

Innovation differs from invention in that innovation refers to the use of a better and, as a result, novel idea or method, whereas invention refers more directly to the creation of the idea or method itself.

Innovation differs from improvement in that innovation refers to the notion of doing something different rather than doing the same thing better.

Inter-disciplinary views[edit]


Main article: Creativity

Creativity has been studied using many different approaches.


Due to its widespread effect, innovation is an important topic in the study of economicsbusinessentrepreneurshipdesign,technologysociology, and engineering. In society, technological innovation aids in comfortconvenience, and efficiency in everyday lifecite . It can also lead to negative effects such as pollution or exploitation. For instance, the benchmarks in railroad equipment andinfrastructure added to greater safety, maintenance, speed, and weight capacity for passenger services. These innovations included wood to steel cars, iron to steel rails, stove-heated to steam-heated cars, gas lighting to electric lighting, diesel-powered to electric-diesel locomotives. By the mid-20th century, trains were making longer, faster, and more comfortable trips at lower costs for passengers.[2] Other areas that add to everyday quality of life include: the innovations to the light bulb from incandescent to compact fluorescent then LED technologies which offer greater efficiency, durability and brightness; adoption of modems to cellular phones, paving the way to smartphones which supply the public with internet access any time or place; cathode-ray tube to flat-screen LCD televisions and others.

Innovation is not only a modern phenomenon. Classicist Armand D’Angour has argued that Ancient Greece provides a model for innovation and reactions to it.[3]

Innovation is the development of new value through solutions that meet new needs, or adding value to old customers by providing new ways of maximizing their current level of productivity. It is the catalyst to growth.

Business and economics[edit]

Main article: innovation economics

In business and economics, innovation is the catalyst to growth. With rapid advancements in transportation and communications over the past few decades, the old world concepts of factor endowments and comparative advantage which focused on an area’s unique inputs are outmoded for today’s global economy. Economist Joseph Schumpeter, who contributed greatly to the study of innovation, argued that industries must incessantly revolutionize the economic structure from within, that is innovate with better or more effective processes and products, such as the shift from the craft shop to factory. He famously asserted that “creative destruction is the essential fact about capitalism.”[4] In addition, entrepreneurs continuously look for better ways to satisfy their consumer base with improved quality, durability, service, and price which come to fruition in innovation with advanced technologies and organizational strategies.[5]

One prime example is the explosive boom of Silicon Valley startups out of the Stanford Industrial Park. In 1957, dissatisfied employees of Shockley Semiconductor, the company of Nobel laureate and co-inventor of the transistor William Shockley, left to form an independent firm, Fairchild Semiconductor. After several years, Fairchild developed into a formidable presence in the sector. Eventually, these founders left to start their own companies based on their own, unique, latest ideas, and then leading employees started their own firms. Over the next 20 years, this snowball process launched the momentous startup company explosion of information technologyfirms. Essentially, Silicon Valley began as 65 new enterprises born out of Shockley’s eight former employees.[6]


In the organizational context, innovation may be linked to positive changes in efficiencyproductivityqualitycompetitivenessmarket share, and others. However, recent research findings highlight the complementary role of organizational culture in enabling organizations to translate innovative activity into tangible performance improvements.[7]

All organizations can innovate, including for example hospitals,[8] universities, and local governments. For instance, former MayorMartin O’Malley pushed the City of Baltimore to use CitiStat, a performance-measurement data and management system that allows city officials to maintain statistics on crime trends to condition of potholes. This system aids in better evaluation of policies and procedures with accountability and efficiency in terms of time and money. In its first year, CitiStat saved the city $13.2 million.[9] Evenmass transit systems have innovated with hybrid bus fleets to real-time tracking at bus stands. In addition, the growing use of mobile data terminals in vehicles that serves as communication hubs between vehicles and control center automatically send data on location, passenger counts, engine performance, mileage and other information. This tool helps to deliver and manage transportation systems.[10]

Still other innovative strategies include hospitals digitizing medical information in electronic medical records; HUD’s HOPE VI initiatives to eradicate city’s severely distressed public housing to revitalized, mixed income environments; the Harlem Children’s Zone that uses a community-based approach to educate local area children; and EPA’s brownfield grants that aids in turning over brownfields forenvironmental protectiongreen spacescommunity and commercial development.

Sources of Innovation[edit]

There are several sources of innovation. It can occur as a result of a focus effort by a range of different agents, by chance, or as a result of a major system failure.

According to Peter F. Drucker the general sources of innovations are different changes in industry structure, in market structure, in local and global demographics, in human perception, mood and meaning, in the amount of already available scientific knowledge, etc..

Original model of three phases of the process of Technological Change

In the simplest linear model of innovation the traditionally recognized source ismanufacturer innovation. This is where an agent (person or business) innovates in order to sell the innovation.

Another source of innovation, only now becoming widely recognized, is end-user innovation. This is where an agent (person or company) develops an innovation for their own (personal or in-house) use because existing products do not meet their needs. MIT economist Eric von Hippel has identified end-user innovation as, by far, the most important and critical in his classic book on the subject, Sources of Innovation.[11]

The robotics engineer Joseph F. Engelberger asserts that innovations require only three things:

  1. A recognized need,
  2. Competent people with relevant technology, and
  3. Financial support.[12]

However, innovation processes usually involve: identifying needs, developing competences, and finding financial support.

The Kline Chain-linked model of innovation[13] places emphasis on potential market needs as drivers of the innovation process, and describes the complex and often iterative feedback loops between marketing, design, manufacturing, and R&D.

Innovation by businesses is achieved in many ways, with much attention now given to formal research and development (R&D) for “breakthrough innovations.” R&D help spur on patents and other scientific innovations that leads to productive growth in such areas as industry, medicine, engineering, and government.[14] Yet, innovations can be developed by less formal on-the-job modifications of practice, through exchange and combination of professional experience and by many other routes. The more radical and revolutionary innovations tend to emerge from R&D, while more incremental innovations may emerge from practice – but there are many exceptions to each of these trends.

An important innovation factor includes customers buying products or using services. As a result, firms may incorporate users in focus groups (user centred approach), work closely with so called lead users (lead user approach) or users might adapt their products themselves. The lead user method focuses on idea generation based on leading users to develop breakthrough innovations. U-STIR, a project to innovate Europe’s surface transportation system, employs such workshops.[15] Regarding this user innovation, a great deal of innovation is done by those actually implementing and using technologies and products as part of their normal activities. In most of the times user innovators have some personal record motivating them. Sometimes user-innovators may become entrepreneurs, selling their product, they may choose to trade their innovation in exchange for other innovations, or they may be adopted by their suppliers. Nowadays, they may also choose to freely reveal their innovations, using methods like open source. In such networks of innovation the users or communities of users can further develop technologies and reinvent their social meaning.[16][17]


Programs of organizational innovation are typically tightly linked to organizational goals and objectives, to the business plan, and tomarket competitive positioning. One driver for innovation programs in corporations is to achieve growth objectives. As Davila et al. (2006) notes, “Companies cannot grow through cost reduction and reengineering alone… Innovation is the key element in providing aggressive top-line growth, and for increasing bottom-line results.” [18]

One survey across a large number of manufacturing and services organizations found, ranked in decreasing order of popularity, that systematic programs of organizational innovation are most frequently driven by: Improved quality, Creation of new markets, Extension of the product range, Reduced labor costs, Improved production processes, Reduced materials, Reduced environmental damage, Replacement of products/services, Reduced energy consumption, Conformance to regulations.[18]

These goals vary between improvements to products, processes and services and dispel a popular myth that innovation deals mainly with new product development. Most of the goals could apply to any organisation be it a manufacturing facility, marketing firm, hospital or local government. Whether innovation goals are successfully achieved or otherwise depends greatly on the environment prevailing in the firm.[19]

Conversely, failure can develop in programs of innovations. The causes of failure have been widely researched and can vary considerably. Some causes will be external to the organization and outside its influence of control. Others will be internal and ultimately within the control of the organization. Internal causes of failure can be divided into causes associated with the cultural infrastructure and causes associated with the innovation process itself. Common causes of failure within the innovation process in most organizations can be distilled into five types: Poor goal definition, Poor alignment of actions to goals, Poor participation in teams, Poor monitoring of results, Poor communication and access to information.[20]

Diffusion of innovation[edit]


Diffusion of innovation research was first started in 1903 by seminal researcher Gabriel Tarde, who first plotted the S-shaped diffusion curve. Tarde (1903) defined the innovation-decision process as a series of steps that includes:[21]

  1. First knowledge
  2. Forming an attitude
  3. A decision to adopt or reject
  4. Implementation and use
  5. Confirmation of the decision

Once innovation occurs, innovations may be spread from the innovator to other individuals and groups. This process has been proposed that the life cycle of innovations can be described using the ‘s-curve‘ or diffusion curve. The s-curve maps growth of revenue or productivity against time. In the early stage of a particular innovation, growth is relatively slow as the new product establishes itself. At some point customers begin to demand and the product growth increases more rapidly. New incremental innovations or changes to the product allow growth to continue. Towards the end of its life cycle growth slows and may even begin to decline. In the later stages, no amount of new investment in that product will yield a normal rate of return

The s-curve derives from an assumption that new products are likely to have “product life”. i.e. a start-up phase, a rapid increase in revenue and eventual decline. In fact the great majority of innovations never get off the bottom of the curve, and never produce normal returns.

Innovative companies will typically be working on new innovations that will eventually replace older ones. Successive s-curves will come along to replace older ones and continue to drive growth upwards. In the figure above the first curve shows a current technology. The second shows an emerging technology that currently yields lower growth but will eventually overtake current technology and lead to even greater levels of growth. The length of life will depend on many factors.[22]


There are two different types of measures for innovation: the organizational level and the political level.

Organizational level[edit]

The measure of innovation at the organizational level relates to individuals, team-level assessments, and private companies from the smallest to the largest. Measure of innovation for organizations can be conducted by surveys, workshops, consultants or internal benchmarking. There is today no established general way to measure organizational innovation. Corporate measurements are generally structured around balanced scorecards which cover several aspects of innovation such as business measures related to finances, innovation process efficiency, employees’ contribution and motivation, as well benefits for customers. Measured values will vary widely between businesses, covering for example new product revenue, spending in R&D, time to market, customer and employee perception & satisfaction, number of patents, additional sales resulting from past innovations.[23]

Political level[edit]

For the political level, measures of innovation are more focused on a country or region competitive advantage through innovation. In this context, organizational capabilities can be evaluated through various evaluation frameworks, such as those of the European Foundation for Quality Management. The OECD Oslo Manual (1995) suggests standard guidelines on measuring technological product and process innovation. Some people consider the Oslo Manual complementary to the Frascati Manual from 1963. The new Oslo manual from 2005 takes a wider perspective to innovation, and includes marketing and organizational innovation. These standards are used for example in the European Community Innovation Surveys.[24]

Other ways of measuring innovation have traditionally been expenditure, for example, investment in R&D (Research and Development) as percentage of GNP (Gross National Product). Whether this is a good measurement of innovation has been widely discussed and the Oslo Manual has incorporated some of the critique against earlier methods of measuring. The traditional methods of measuring still inform many policy decisions. The EU Lisbon Strategy has set as a goal that their average expenditure on R&D should be 3% of GDP.[25]


Many scholars claim that there is a great bias towards the “science and technology mode” (S&T-mode or STI-mode), while the “learning by doing, using and interacting mode” (DUI-mode) is widely ignored. For an example, that means you can have the better high tech or software, but there are also crucial learning tasks important for innovation. But these measurements and research are rarely done.

A common industry view (unsupported by empirical evidence) is that comparative cost-effectiveness research (CER) is a form of price control which, by reducing returns to industry, limits R&D expenditure, stifles future innovation and compromises new products access to markets.[26] Some academics claim the CER is a valuable value-based measure of innovation which accords truly significant advances in therapy (those that provide ‘health gain’) higher prices than free market mechanisms.[27] Such value-based pricing has been viewed as a means of indicating to industry the type of innovation that should be rewarded from the public purse.[28] The Australianacademic Thomas Alured Faunce has developed the case that national comparative cost-effectiveness assessment systems should be viewed as measuring ‘health innovation’ as an evidence-based concept distinct from valuing innovation through the operation of competitive markets (a method which requires strong anti-trust laws to be effective) on the basis that both methods of assessing innovation in pharmaceuticals are mentioned in annex 2C.1 of the AUSFTA.[29][30][31]

Rate of innovation[edit]

Several indexes exist that attempt to measure innovation include:

  • The Innovation Index, developed by the Indiana Business Research Center, to measure innovation capacity at the county or regional level in the U.S.[32]
  • The State Technology and Science Index, developed by the Milken Institute is a U.S. wide benchmark to measure the science and technology capabilities that furnish high paying jobs based around key components.
  • The Oslo Manual is focused on North America, Europe, and other rich economies.
  • The Bogota Manual, similar to the above, focuses on Latin America and the Caribbean countries.
  • The Creative Class developed by Richard Florida
  • The Innovation Capacity Index (ICI) published by a large number of international professors working in a collaborative fashion. The top scorers of ICI 2009–2010 being: 1. Sweden 82.2; 2. Finland 77.8; and 3. United States 77.5.
  • The Global Innovation Index is a global index measuring the level of innovation of a country, produced jointly by The Boston Consulting Group (BCG), the National Association of Manufacturers (NAM), and The Manufacturing Institute (MI), the NAM’s nonpartisan research affiliate. NAM describes it as the “largest and most comprehensive global index of its kind”.
  • The INSEAD Global Innovation Index
  • The INSEAD Innovation Efficacy Index
  • The NYCEDC Innovation Index

Global innovation index[edit]

Gnome globe current event.svg
This article is outdated. Please update this section to reflect recent events or newly available information. (August 2011)

This international innovation index is one of many research studies that try to build a ranking of countries related to innovation. Other indexes are the Innovations IndikatorInnovation Union ScoreboardEIU Innovation RankingBCG International Innovation IndexGlobal Competitiveness ReportWorld Competitiveness ScoreboardITIF Index. The top 3 countries among all these different indexes are Switzerland, Sweden and Singapore.[33]

The global innovation index looks at both the business outcomes of innovation and government’s ability to encourage and support innovation through public policy. The study comprised a survey of more than 1,000 senior executives from NAM member companies across all industries; in-depth interviews with 30 of the executives; and a comparison of the “innovation friendliness” of 110 countries and all 50 U.S. states. The findings are published in the report, “The Innovation Imperative in Manufacturing: How the United States Can Restore Its Edge.”[34]

The report discusses not only country performance but also what companies are doing and should be doing to spur innovation. It looks at new policy indicators for innovation, including tax incentives and policies for immigrationeducation and intellectual property.

The latest index was published in March 2009.[35] To rank the countries, the study measured both innovation inputs and outputs. Innovation inputs included government and fiscal policyeducation policy and the innovation environment. Outputs included patents,technology transfer, and other R&D results; business performance, such as labor productivity and total shareholder returns; and the impact of innovation on business migration and economic growth. The following is a list of the twenty largest countries (as measured byGDP) by the International Innovation Index:

Rank Country Overall Innovation Inputs Innovation Performance
1  Philippines 2.26 1.75 2.55
2  United States 1.80 1.28 2.16
3  Japan 1.79 1.16 2.25
4  Sweden 1.64 1.25 1.88
5  Netherlands 1.55 1.40 1.55
6  Canada 1.42 1.39 1.32
7  United Kingdom 1.42 1.33 1.37
8  Germany 1.12 1.05 1.09
9  France 1.12 1.17 0.96
10  Australia 1.02 0.89 1.05
11  Spain 0.93 0.83 0.95
12  Belgium 0.86 0.85 0.79
13  China 0.73 0.07 1.32
14  Italy 0.21 0.16 0.24
15  India 0.06 0.14 −0.02
16  Russia −0.09 −0.02 −0.16
17  Mexico −0.16 0.11 −0.42
18  Turkey −0.21 0.15 −0.55
19  Indonesia −0.57 −0.63 −0.46
20  Brazil −0.59 −0.62 −0.51

Slowing of innovation[edit]

Jonathan Huebner, a physicist working at the Pentagon’s Naval Air Warfare Center, argued on the basis of both U.S. patents and world technological breakthroughs, per capita, that the rate of human technological innovation peaked in 1873 and has been slowing ever since.[36] In his article, he asked “Will the level of technology reach a maximum and then decline as in the Dark Ages?”[36] In later comments to New Scientist magazine, Huebner clarified that while he believed that we will reach a rate of innovation in 2024 equivalent to that of the Dark Ages, he was not predicting the reoccurrence of the Dark Ages themselves.[37]

His paper received some mainstream news coverage at the time.[38]

The claim has been met with criticism by John Smart, founder of the Acceleration Studies Foundation, who asserted that research bytechnological singularity researcher Ray Kurzweil and others showed a “clear trend of acceleration, not deceleration” when it came to innovations.[39] However, in 2010, Joseph A. Tainter, Deborah Strumsky, and José Lobo confirmed Huebner’s findings using U.S. Patent Office data.[40]

Government policies[edit]

Given the noticeable effects on efficiencyquality of life, and productive growth, innovation is a key factor in society and economy. Consequently, policymakers have long worked to develop environments that will foster innovation and its resulting positive benefits, from funding Research and Development to supporting regulatory change, funding the development of innovation clusters, and using public purchasing and standardisation to ‘pull’ innovation through.

For instance, experts are advocating that the U.S. federal government launch a National Infrastructure Foundation, a nimble, collaborative strategic intervention organization that will house innovations programs from fragmented silos under one entity, inform federal officials on innovation performance metrics, strengthen industry-university partnerships, and support innovation economic development initiatives, especially to strengthen regional clusters. Because clusters are the geographic incubators of innovative products and processes, a cluster development grant program would also be targeted for implementation. By focusing on innovating in such areas as precision manufacturinginformation technology, and clean energy, other areas of national concern would be tackled including government debtcarbon footprint, and oil dependence.[14] The U.S. Economic Development Administration understand this reality in their continued Regional Innovation Clusters initiative.[41] In addition, federal grants in R&D, a crucial driver of innovation and productive growth, should be expanded to levels similar to JapanFinlandSouth Korea, and Switzerland in order to stay globally competitive. Also, such grants should be better procured to metropolitan areas, the essential engines of the American economy.[14]

Many countries recognize the importance of research and development as well as innovation including Japan’s Ministry of Education, Culture, Sports, Science and Technology (MEXT);[42] Germany’s Federal Ministry of Education and Research;[43] and the Ministry of Science and Technology in the People’s Republic of China [1]. Furthermore, Russia’s innovation programme is the Medvedev modernisation programme which aims at creating a diversified economy based on high technology and innovation. Also, theGovernment of Western Australia has established a number of innovation incentives for government departments. Landgate was the first Western Australian government agency to establish its Innovation Program.[44] The Cairns Region established the Tropical Innovation Awards in 2010 open to all businesses in Australia.[45] The 2011 Awards were extended to include participants from all Tropical Zone Countries.

See also[edit]


  1. Jump up^ Based on Frankelius, P. (2009), Questioning two myths in innovation literature, Journal of High Technology Management Research, Vol. 20, No. 1, pp. 40–51.
  2. Jump up^ EuDaly, K, Schafer, M, Boyd, Jim, Jessup, S, McBridge, A, Glischinksi, S. (2009). The Complete Book of North American Railroading. Voyageur Press. 1-352 pgs.
  3. Jump up^ D’AngourThe Greeks and the New. Cambridge University Press. ISBN 978-1-139-50061-6. Retrieved 1 September 2013.
  4. Jump up^ Schumpeter, J. A. (1943). Capitalism, Socialism, and Democracy (6 ed.). Routledge. pp. 81–84. ISBN 0-415-10762-8.
  5. Jump up^ Heyne, P., Boettke, P. J., and Prychitko, D. L. (2010). The Economic Way of Thinking. Prentice Hall, 12th ed. Pp. 163, 317–318.
  6. Jump up^ Gregory Gromov (2011). Silicon Valley History.
  7. Jump up^ Salge, T.O. & Vera, A. 2012, Benefiting from Public Sector Innovation: The Moderating Role of Customer and Learning Orientation, Public Administration Review, Vol. 72, Issue 4, pp. 550-560
  8. Jump up^ Salge, T.O. & Vera, A. 2009, Hospital innovativeness and organizational performance, Health Care Management Review, Vol. 34, Issue 1, pp. 54–67.
  9. Jump up^ Perez, T. and Rushing R. (2007). The CitiStat Model: How Data-Driven Government Can Increase Efficiency and Effectiveness. Center for American Progress Report. Pp. 1–18.
  10. Jump up^ Transportation Research Board. (2007). Transit Cooperative Research Program (TCRP) Synthesis 70: Mobile Data Terminals. Pp. 1–5.
  11. Jump up^ Von Hippel, E. (1988). Sources of Innovation. Oxford University Press. The Sources of Innovation
  12. Jump up^ Engelberger, J. F. (1982). Robotics in practice: Future capabilities. Electronic Servicing & Technology magazine.
  13. Jump up^ Kline (1985). Research, Invention, Innovation and Production: Models and Reality, Report INN-1, March 1985, Mechanical Engineering Department, Stanford University.
  14. Jump up to:a b c Mark, M., Katz, B., Rahman, S., and Warren, D. (2008) MetroPolicy: Shaping A New Federal Partnership for a Metropolitan Nation. Brookings Institution: Metropolitan Policy Program Report. Pp. 4–103.
  15. Jump up^ “U-STIR”. Retrieved 2011-09-07.
  16. Jump up^ Tuomi, I. (2002). Networks of Innovation. Oxford University Press. Networks of Innovation
  17. Jump up^ Siltala, R. (2010). Innovativity and cooperative learning in business life and teaching. University of Turku.
  18. Jump up to:a b Davila, T., Epstein, M. J., and Shelton, R. (2006). “Making Innovation Work: How to Manage It, Measure It, and Profit from It. ” Upper Saddle River: Wharton School Publishing.
  19. Jump up^ Khan, A. M (1989). Innovative and Noninnovative Small Firms: Types and Characteristics. Management Science, Vol. 35, no. 5. Pp. 597–606.
  20. Jump up^ O’Sullivan, David (2002). “Framework for Managing Development in the Networked Organisations”. Journal of Computers in Industry 47 (1): 77–88.
  21. Jump up^ Tarde, G. (1903). The laws of imitation (E. Clews Parsons, Trans.). New York: H. Holt & Co.
  22. Jump up^ Rogers, E. M. (1962). Diffusion of Innovation. New York, NY: Free Press.
  23. Jump up^ Davila, Tony; Marc J. Epstein and Robert Shelton (2006). Making Innovation Work: How to Manage It, Measure It, and Profit from It. Upper Saddle River: Wharton School Publishing
  24. Jump up^ OECD The Measurement of Scientific and Technological Activities. Proposed Guidelines for Collecting and Interpreting Technological Innovation Data. Oslo Manual. 2nd edition, DSTI, OECD / European Commission Eurostat, Paris 31 Dec 1995.
  25. Jump up^ “Industrial innovation – Enterprise and Industry”. Retrieved 2011-09-07.
  26. Jump up^ Chalkidou K, Tunis S, Lopert R, Rochaix L, Sawicki PT, Nasser M, Xerri B. Comparative Effectiveness research and Evidence-Based Health Policy: Experience from Four Countries. The Milbank Quarterly 2009; 87(2): 339–367 at 362–363.
  27. Jump up^ Roughead E, Lopert R and Sansom L. Prices for innovative pharmaceutical products that provide health gain: a comparison between Australia and the United States Value in Health 2007;10:514–20
  28. Jump up^ Hughes B. Payers Growing Influence on R&D Decision Making. Nature Reviews Drugs Discovery 2008; 7: 876–78.
  29. Jump up^ Faunce T, Bai J and Nguyen D. Impact of the Australia-US Free Trade Agreement on Australian medicines regulation and prices. Journal of Generic Medicines 2010; 7(1): 18-29
  30. Jump up^ Faunce TA. Global intellectual property protection of “innovative” pharmaceuticals:Challenges for bioethics and health law in B Bennett and G Tomossy (eds) Globalization and Health Springer 2006 . Retrieved 18 June 2009.
  31. Jump up^ Faunce TA. Reference pricing for pharmaceuticals: is the Australia-United States Free Trade Agreement affecting Australia’s Pharmaceutical Benefits Scheme? Medical Journal of Australia. 2007 Aug 20;187(4):240–2.
  32. Jump up^ “Tools”. Retrieved 2011-09-07.
  33. Jump up^ “Innovation Indicator 2011”. 2011. Retrieved 2012-05-27.
  34. Jump up^ “U.S. Ranks #8 In Global Innovation Index”. 2009-03-10. Retrieved 2009-08-28.
  35. Jump up^ “The Innovation Imperative in Manufacturing: How the United States Can Restore Its Edge” (PDF). Retrieved 2009-08-28.
  36. Jump up to:a b Huebner, J. (2005). “A possible declining trend for worldwide innovation”. Technological Forecasting and Social Change 72 (8): 980–986. doi:10.1016/j.techfore.2005.01.003.edit
  37. Jump up^ Adler, Robert (2 July 2005). “Entering a dark age of innovation”New Scientist. Retrieved 30 May 2013.
  38. Jump up^ Hayden, Thomas (July 7, 2005). “Science: Wanna be an inventor? Don’t bother”U.S News and World Report. Retrieved 10 June 2013.
  39. Jump up^ Smart, J. (2005). “Discussion of Huebner article”.Technological Forecasting and Social Change 72 (8): 988–995.doi:10.1016/j.techfore.2005.07.001edit
  40. Jump up^ Strumsky, D.; Lobo, J.; Tainter, J. A. (2010). “Complexity and the productivity of innovation”. Systems Research and Behavioral Science 27 (5): 496. doi:10.1002/sres.1057edit
  41. Jump up^
  42. Jump up^ “Science and Technology”. MEXT. Retrieved 2011-09-07.
  43. Jump up^ “BMBF ” Ministry”. Retrieved 2011-09-07.
  44. Jump up^
  45. Jump up^

External links[edit]


Inventions and discoveries by nation or region

Aspects of capitalism

Start-up Nation by Dan Senor and Saul Singer


Start-up Nation

Start-up Nation: The Story of Israel’s Economic Miracle
Start-up Nation.jpg
Author Dan Senor and Saul Singer
Country United States
Language English
Publisher Twelve
Publication date November 4, 2009
Media type Print (hardcover)
Pages 320
ISBN 978-0-446-54146-6

Start-up Nation: The Story of Israel’s Economic Miracle is a 2009 book by Dan Senorand Saul Singer about the economy of Israel. It examines how Israel, a 60-year old nation with a population of 7.1 million, was able to reach such economic growth that “at the start of 2009, some 63 Israeli companies were listed on the NASDAQ, more than those of any other foreign country.”[1]

In 2010, Start-up Nation was ranked fifth on the business best-seller list of The New York Times.[2] It also reached the The Wall Street Journal bestseller list.[3]

Book overview[edit]

The Council on Foreign Relations states in its publisher’s blurb for the book that Start-up Nation addresses the question: “How is it that Israel—a country of 7.1 million people, only sixty years old, surrounded by enemies, in a constant state of war since its founding, with no natural resources—produces more start-up companies than large, peaceful, and stable nations like Japan, China, India, Korea, Canada, and the United Kingdom?”[4] The Economist notes that Israel now has more high-tech start-ups and a larger venture capital industry per capita than any other country in the world. The success of Israel’s high-tech sector over the past two decades has attracted recent attention from business journalists and The Economist describes Start-up Nation as the most notable of a “growing pile” of books on the subject.[5]

In their attempt to explain Israel’s success in this area, Senor and Singer discard “the argument from ethnic or religious exceptionalism, dismissing “unitary Jewishness” or even individual talent as major reasons for Israel’s high-tech success” and analyze two major factors that, in the authors’ opinion, contribute most to Israel’s economic growth. Those factors are mandatory military service andimmigration.[4]

The authors argue that a major factor for Israel’s economic growth can be found in the culture of the Israel Defense Forces, in which service is mandatory for most young Israelis. The authors believe that IDF service provides potential entrepreneurs with the opportunities to develop a wide array of skills and contacts. They also believe that IDF service provides experience exerting responsibility in a relatively unhierarchical environment where creativity and intelligence are highly valued.[6] IDF soldiers “have minimal guidance from the top, and are expected to improvise, even if this means breaking some rules. If you’re a junior officer, you call your higher-ups by their first names, and if you see them doing something wrong, you say so.”[1] Neither ranks nor ages matter much “when taxi drivers can command millionaires and 23-year-olds can train their uncles,” and “Israeli forces regularly vote to oust their unit leaders.”[7]

The book also dwells at length on immigration and its role in Israel’s economics’s growth: “Immigrants are not averse to start from scratch. They are by definition risk-takers. A nation of immigrants is a nation of entrepreneurs. From survivors of the Holocaust to Sovietrefuseniks through the Ethiopian Jews, the State of Israel never ceased to be a land of immigration: 9 out of 10 Jewish Israelis today are immigrants or descendants of immigrants the first or second generation. This specific demographic, causing fragmentation of community that still continues in the country, is nevertheless a great incentive to try their luck, to take risks because immigrants have nothing to lose.”[8]

Additional factors cited by the authors include a sense of dissatisfaction with the current state of affairs, a culture where individuals frequently tinker with technology, and government policies friendly to start-ups.[6]

Using stories and anecdotes, the book provides examples of Israel’s technological and medical achievements, among them “the Israeli innovations that made possible Google Suggest, the list of suggestions that appear instantly in menu form as you type a search request, the Capsule endoscopy, a miniature camera embedded in a pill so that 18 photos per second can be wirelessly and painlessly transmitted from gastrointestinal tracts.”[9]

While the book describes Israel’s many successes in technological innovation, it also attempts to address, in the words of one reviewer, why Israel still lacks its own “NokiaSamsung, or IBM.” According to the book’s authors, this is partly because Israeli startups tend to be bought up by large foreign companies and partly because Israeli business has thus far failed to develop the kind of mature management culture needed to run such companies.[10]

Senor and Singer interviewed over 100 people to write the book, among them leading Israeli venture investors including key players inGoogleIntel and Cisco, historians, U.S. military leaders, and Israeli heads of state.[11] Their conclusion is that “while Israel has much to learn from the world, the world has much to learn from Israel.”[12]


Dan Senor is a former foreign policy official in the United States government. He served as chief spokesmen for the Coalition Provisional Authority in Iraq and now advises venture capital firms. Saul Singer is a columnist and former editorial page editor for The Jerusalem Post.[1][13]

Critical reception[edit]


Jon Rosen from USA Today believes that the book is written from an Israeli perspective and may irk those with reservations about Israeli foreign policy, but it is still an accomplishment, “not simply for exposing the roots of Israel’s success, but by showing what the Israeli case might teach the rest of the world.”[14] In The Wall Street JournalJames K. Glassman says that “The greatest strength of Start-up Nation is not analysis but anecdote. The authors tell vivid stories of entrepreneurial success, such as that of Shai Agassi, the son of an Iraqi immigrant to Israel, with his electric-automobile technology, now in the process of creating ‘Car 2.0.'”[1]

Publishers Weekly states that “The authors ground their analysis in case studies and interviews with some of Israel’s most brilliant innovators to make this a rich and insightful read not just for business leaders and policy makers but for anyone curious about contemporary Israeli culture.”[15]

In The Economic TimesR Gopalakrishnan writes that the use of Hebrew expressions makes the book “alive and eminently-readable.”[16] Besides chutzpah, the authors use the word bitzua, which roughly means “getting things done.” Another Hebrew expression used in the book is “Rosh gadol,” which could be translated “can-do and responsible attitude with scant respect for the limitations of formal authority.” Gopalakrishnan concludes that the ideas demonstrated in the book “are highly relevant for innovation capability in general, but for India, especially at this juncture.”[16]

David Horovitz of The Jerusalem Post says that conclusions of Start-up Nation find confirmation in the real world, such as how the life of Congresswoman Gabrielle Giffords was saved when an emergency medical team applied a revolutionary elasticized bandage developed in Israel to staunch her head wounds.[17]

A review in The Washington Post says that “The book weaves together colorful stories of Israeli technological triumphs” such as the story of Shvat Shaked, who “founded a cybersecurity firm with his old buddy from Army intelligence and had the chutzpah to bet a top executive at PayPal, the online commerce company owned by eBay, that his few dozen engineers could beat PayPal’s thousands in developing secure online software.”[13] The review also states that the authors could have done a better job drawing “straight lines between their theories about Israel’s success and these case studies”[13]

Maureen Farrell of Forbes was disappointed that the authors mostly ignored the effects of U.S. foreign aid, but says the book “is worth reading to understand not just Israel’s history but the history of capitalism and innovation.”[7]


Ruth Schuster, reviewing the book for Haaretz, feels that it is “tarnished by a jarring, tub-thumping patriotism.”[18] A review in The Christian Science Monitor notes that “critics say that the story behind how a country of 7 million has more Nasdaq-listed companies than Europe is more complex than Singer and Senor paint it to be.”[10]

Economist Yusuf Mansour, writing in the Jordan Times, argues that two of the factors to which Senor and Singer attribute Israel’s success, the IDF and Soviet-Jewish immigration, have only been sustainable because of the foreign aid that Israel receives from the United States and private sources. Mansour also faults the authors for suggesting that the disparity between entrepreneurship in Israel’s Arab and Jewish sectors is rooted in the exemption of Arabs from military service rather than what Mansour perceives to be “the discriminatory policies of Israel against its Arab citizens,” particular in education and the labor market.[19]

Gal Beckerman, writing in The Forward magazine, observes that the book “presents Israel in an extremely positive light as a bastion of entrepreneurial spirit and technological achievement. It skirts a discussion of the conflict with the Palestinians, or even the wealth inequality within Israel, thereby dovetailing nicely with recent public relations efforts by Israel to shift attention away from its problems and toward its achievements.”[20]


Journalists and policymakers in several countries have recommended Start-up Nation as a useful guide for promoting entrepreneurship. A review of the book in The Irish Times calls on Ireland to follow Israel’s model.[21] Andrius Kubilius, the prime minister of Lithuania, has cited Start-up Nation as his favorite book.[22] Yrjö Ojasaar, managing partner of Solon Partners, an executive consulting and angel investor company in Estonia, says “there is much to be learned from the Israeli experience of venture capital incubation through building incentives for privatization.”[23] CNN’s Fareed Zakaria called Start-up Nation “a book every single Arab businessman, Arab bureaucrat, and Arab politician should read.”[24] The book is cited as a handbook of “classic economics.” It teaches small businesses “how effective a cohesive team can be, especially when that team places an emphasis on chutzpah first.”[25]

Palestinian Prime Minister Salam Fayyad reportedly keeps a copy of Start-up Nation on his desk as a source of inspiration for the West Bank’s own burgeoning technology industry.[26]

See also[edit]


  1. Jump up to:a b c d JAMES K. GLASSMAN (November 23, 2009). “Where Tech Keeps Booming In Israel, a clustering of talent, research universities and venture capital..”Wall Street Journal. Retrieved April 4, 2011.
  2. Jump up^ NYT Hardcover Business Best Sellers
  3. Jump up^ The Massachusetts-Israel Economic Relationship
  4. Jump up to:a b “Start-Up Nation The Story of Israel’s Economic Miracle”.Council on Foreign Relations. Retrieved April 22, 2011.
  5. Jump up^ Schumpeter (December 29, 2010). “Beyond the start-up nation Israel has become a high-tech superpower over the past two decades.Can the good news last?”The Economist. Retrieved April 22, 2011.
  6. Jump up to:a b Oram, Andy (February 14, 2010). “Innovation Lessons in “Start-Up Nation””O’Reilly Radar. Retrieved May 6, 2011.
  7. Jump up to:a b Maureen Farrell (November 10, 2009). “Israel As Incubator”Forbes. Archived from the original on January 23, 2013. Retrieved April 4, 2011.
  8. Jump up^ Steve Nadjari (April 11, 2009). “Israël, une nation d’entrepreneurs”. inaglobal. Retrieved April 22, 2011.(French)
  9. Jump up^ DOUGLAS J. FEITH (January 25, 2010). Innovation needs more bitzua and chutzpah 15 (18). The Weekly Standard.
  10. Jump up to:a b Ilene R. Prusher (March 9, 2010). “Innovation center? How Israel became a ‘Start-Up Nation.'”The Christian Science Monitor. Retrieved April 22, 2011.
  11. Jump up^ Start-up Nation:The Story of Israel’s Economic Miracle, Dan Senor and Saul Singer, p.240-241
  12. Jump up^ Start-up Nation:The Story of Israel’s Economic Miracle, Dan Senor and Saul Singer, p.236
  13. Jump up to:a b c Zachary A. Goldfarb (January 31, 2010). “Start-Up Nation: The Story of Israel’s Economic Miracle”. The Washington Post.
  14. Jump up^ Jon Rosen (December 23, 2009). “Israel offers fertile soil for entrepreneurs, book says”USA Today. Retrieved April 22, 2011.
  15. Jump up^ “Start-Up Nation: The Story of Israel’s Economic Miracle”.Publishers Weekly. September 7, 2009. p. 36.
  16. Jump up to:a b R Gopalakrishnan (December 6, 2010). “Israel’s Secret The ‘informal .  .  . improvisational’ approach to business innovation”The Economic Times. India. Retrieved April 22, 2011.
  17. Jump up^ David Horovitz (January 4, 2011). “They tried to kill us, we won, now we’re changing the world”The Jerusalem Post. Retrieved April 22, 2011.
  18. Jump up^ Schuster, Ruth (November 8, 2009). “The Israel Effect”.Haaretz.
  19. Jump up^ “Financing “the start-up nation”Jordan Times, April 6, 2010.
  20. Jump up^ Beckerman, Gal: “Senor Decides Against Running for Senate, Citing Family and Business”The Forward, March 24, 2010.
  21. Jump up^ What Ireland has to learn from Israel’s high tech companies
  22. Jump up^ Startup nation without physics teachers, Haaretz
  23. Jump up^ Solon Partners: Start-up Nation. The Story of Israel’s Economic Miracle
  24. Jump up^ “Book of the Week”Fareed Zakaria GPS. CNN. November 19, 2009. Retrieved May 4, 2011.
  25. Jump up^ Start-Up Nation: Business Lessons from Israel
  26. Jump up^ Gwen Ackerman (March 15, 2011). “Israeli Technology Companies Turn to West Bank for Outsourcing”Bloomberg News. Retrieved May 11, 2011.

External links[edit]

Israeli Innovation : Some Israeli inventions and discoveries

Drip irrigation in New Mexico vineyard, 2002

Drip irrigation in New Mexico vineyard, 2002 (Photo credit: Wikipedia)

Photograph by Jisl. Dripper in action, connect...

Photograph by Jisl. Dripper in action, connected to Polytube / Lateral, specially used in Drip / Micro Irrigation System for watering crop / plant. (Photo credit: Wikipedia)

English: Colours added to existing monochrome ...

English: Colours added to existing monochrome image File:Batch solar thermal collector.gif (Photo credit: Wikipedia)

Bananap plants with drip irrigation. Jalgaon D...

Bananap plants with drip irrigation. Jalgaon District is one of the largest Banana producers in the world. (Photo credit: Wikipedia)

English: Iron Dome CRAM launcher near the town...

English: Iron Dome CRAM launcher near the town of Sderot. עברית: משגר של מערכת כיפת ברזל ליד העיר שדרות Русский: ПУ системы ПРО “Железный Купол” рядом с городом Сдерот (Photo credit: Wikipedia)

"Iron Dome" system intercepting 'Gra...

“Iron Dome” system intercepting ‘Grad’ rocket (January 2010 testings) (Photo credit: Wikipedia)

USB flash drive, originally marketed as the Di...

USB flash drive, originally marketed as the DiskOnKey (Photo credit: Wikipedia)

English: Installations of solar hot water inst...

English: Installations of solar hot water installations worldwide. (Photo credit: Wikipedia)

English: Solar boiler on a rooftop in Israel.

English: Solar boiler on a rooftop in Israel. (Photo credit: Wikipedia)

Israeli Innovation : Some Israeli inventions and discoveries

Rooftop solar hot-water system

Drip irrigation at an Israeli nursery

Iron Dome rocket interception system

Israeli inventions and discoveries are inventions and discoveries by Israeli scientists and researchers, both locally and while working at overseas research institutes.



Model of quasicrystals, discovered by Nobel prize winner Dan Shechtman of theTechnion


Eshkol-Wachman Movement Notation


  • World’s smallest video camera – a camera with a 0.99 mm (0.039 in) diameter, designed to fit in a tiny endoscope designed by Medigus.[10]
  • Development of the “Pillcam” by Given Imaging, the first Capsule endoscopy solution to record images of the digestive tract. The capsule is the size and shape of a pill and contains a tiny camera.[11]


Pillcam endoscopic capsule developed by Given Imaging



Theoretical computer science[edit]


    • Arrow anti-ballistic missile


Computer hardware[edit]

USB flash drive, originally marketed as the DiskOnKey

  • Quicktionary Electronic dictionary – a pen-sized scanner able to scan words or phrases and immediately translate them into other languages, or keep them in memory in order to transfer them to the PC. Developed by the Israeli company Wizcom Technologies Ltd.[53]
  • Laser Keyboard – virtual keyboard is projected onto a wall or table top and allows to type handheld computers and cell phones. Developed simultaneously by the Israeli company Lumio and Silicon Valley startup company Canesta.[54][55][56][57] The company subsequently licensed the technology to Celluon of Korea.[58]

Computer and mobile software[edit]

Waze, the most popular GPS application for mobile devices worldwide

  • GetTaxi, an application that connects between customers and taxi drivers using the its proprietary GPS system, enabling users to order a cab either with their smartphone or through the company’s website. It was founded by Israeli entrepreneurs Shahar Waiser and Roi More.[63]
  • Waze, a GPS-based geographical navigation application program for smartphones with GPS support and display screens, which provides turn-by-turn information and user-submitted travel times and route details, downloading location-dependent information over the mobile telephone network.[64] Waze Ltd., which was founded in 2008 in Israel by Uri Levine, software engineer Ehud Shabtai and Amir Shinar, and is now available in over 100 countries, was acquired byGoogle for a reported $1.1 billion.


Tomato tomato developed by Hishtil Nurseries of Israel

  • Drip irrigation using a non-clogging plastic emitter developed in Israel.[65] by Simcha Blass and his son Yeshayahu.[66]
  • A variant of the cherry tomato (Tomaccio), developed by Hishtil Nurseries of Israel.[67]
  • Hybrid cucumber seeds – In the 1950s, Prof. Esra Galun of the Weizmann Institute developed hybrid seed production of cucumbers and melons, disease-resistant cucumbers and cucumbers suitable for mechanical harvesting. Galun and his colleagues invented a technique for producing hybrid cucumber seeds without hand pollination.[68]
  • Grain cocoons – invented by international food technology consultant Professor Shlomo Navarro, the GrainPro Cocoons provide a simple and cheap way for African and Asian farmers to keep their grain market-fresh, as huge bags keep both water and air out, making sure the harvest is clean and protected even in extreme heat and humidity.[69]
  • Biological pest control – invented in Kibbutz Sde Eliyahu by a company called Bio-Bee, it breedsbeneficial insects and mites for biological pest control and bumblebees for natural pollination in greenhouses and open fields. The company’s top seller worldwide and especially in the U.S. is a two-millimeter-long, pear-shaped orange spider that is a highly efficient enemy of the spider mite, a devastating agricultural pest.[69]
  • AKOL – a Kibbutz-based company which gives low-income farmers the ability to get top-level information from professional sources.[69]
  • Reusable plastic trays – a Tal-Ya Water Technologies invention used to collect dew from the air, reducing the need to water crops by up to 50 percent.[69]
  • “Zero-discharge” system – an invention of the Israeli GFA company which allows fish to be raised virtually anywhere by eliminating the environmental problems in conventional fish farming, without being dependent on electricity or proximity to a body of water.[69]
  • TraitUP – a new technology that enables the introduction of genetic materials into seeds without modifying their DNA, immediately and efficiently improving plants before they’re even sowed. It was developed by Hebrew University agricultural scientists Ilan Sela and Haim D. Rabinowitch.[69]


  • Super iron battery – A new class of a rechargeable electric battery based on a special kind of iron. More environment friendly because the super-iron eventually rusts, it was developed by Stuart Licht.[70] of the University of Massachusetts.[71]
  • Energy tower – Purely theoretical alternative electricity generation and water desalination technology in low cost. The Energy towers spray water on hot air at the top of the tower, making the cooled air fall through the tower and drive a turbine at the tower’s bottom. The brainchild of the American physicist Phillip Carlson, it was expanded by Professor Dan Zaslavsky and Rami Guetta from theTechnion.[72][73]
  • A unique technology for producing hydrogen in vehicles as an alternative fuel source. It is produced by the Israeli company Engineuity and was invented by Amnon Yogev and Eli Gmaazaon.[74]
  • Improvement of previously existing flat plate solar water heaters – A home facility that converts solar energy to thermal energy. Following the energy crisis in the 1970s, The Israeli law requires the installation of solar water heaters in all new homes. It was developed by Zvi Tavor.[75]

Consumer goods and appliances[edit]

  • Epilator (originally “Epilady”) – an electrical device used to remove hair by mechanically grasping multiple hairs simultaneously and pulling them out. It was developed and originally manufactured at Kibbutz HaGoshrim.[76][77]
  • Wonder Pot – a pot developed for baking on the stovetop rather than in an oven.[78]
  • Micronized coating instant hot water pipes developed by A.C.T.[79]
  • Artificial gills – a theoretical special diving system not yet in production, currently being developed by the Israeli company Like-A-Fish Technologies, it produces oxygen from water, making oxygen tanks unnecessary.[80]



Physical exercise[edit]

See also[edit]


  1. Jump up^ Quasicrystals clinch Wolf prize –
  2. Jump up^ The Nobel Prize in Chemistry 2011
  3. Jump up^ Two Israelis win Nobel Prize in chemistry | health
  4. Jump up^ The Nobel Prize in Chemistry 2004
  5. Jump up^ The Nobel Prize in Chemestry 2013
  6. Jump up^ Yuval Ne’eman – The Telegraph
  7. Jump up^ PI Distinguished Research Chair Yakir Aharonov Wins US National Medal of Science – Perimeter Institute for Theoretical Physics
  8. Jump up^ Chronology of Black Hole Physics
  9. Jump up^ Physics Timeline 1961 – 1980
  10. Jump up^ World’s Smallest Video Camera Record Broken Again
  11. Jump up^ Israel’s ‘camera in a capsule’ approved for esophagus diagnosis
  12. Jump up^ Co-founder of movement notation system dies at 79
  13. Jump up^ Ruth Arnon Profile –
  14. Jump up^ Multiple Sclerosis « Global Health Vision
  15. Jump up^ Interferon Based Drug May Eliminate Breast Cancer
  16. Jump up^ Wang, Aiming (2011). Molecular Farming in Plants: Recent Advances and Future ProspectsSpringer. p. 60. ISBN 94-007-2216-8.
  17. Jump up^ Yukhananov, Anna (1 May 2012). “U.S. FDA approves Pfizer/Protalix drug for Gaucher”Chicago TribuneReuters. Retrieved 2 May 2012.
  18. Jump up^ Amos Tversky and Daniel Kahneman, “The Framing of Decisions and the Psychology of Choice.” Science1981;211:453-458.
  19. Jump up^ [1]
  20. Jump up^ Robert J. Aumann – Prize Lecture
  21. Jump up^ Rubinstein, Ariel (1982). “Perfect Equilibrium in a Bargaining Model”Econometrica 50 (1): 97–109.doi:10.2307/1912531.
  22. Jump up^ DNA Used To Create Self Assembling Conducting Wire: Breakthrough Will Lead To Next Leap In Emerging Nanoelectronics
  23. Jump up^ Computer Made from DNA and Enzymes
  24. Jump up^ Tiny Computing Machine Fueled By DNA; Device Awarded In Guinness World Record For “Smallest Biological Computing Device”
  25. Jump up^ ACM Turing Award Citation
  26. Jump up^ Lempel–Ziv–Welch
  27. Jump up^ RSA (algorithm)
  28. Jump up^ Israel Weapon Industries (IWI) Ltd, Uzi SMG
  29. Jump up^ [2]
  30. Jump up^
  31. Jump up^ Gabriel (Israel) – Jane’s Air-Launched Weapons
  32. Jump up^ ARROW Weapon System
  33. Jump up^ Arrow Media Gallery
  34. Jump up^ The Merkava Mk3 Baz Main Battle Tank, Israel – Army Technology
  35. Jump up^ Merkava series
  36. Jump up^
  37. Jump up^ “Protector”Defence Updates. Retrieved 2007-04-21.
  38. Jump up^ Python 4, Python 5 (Israel) – Jane’s Air-Launched Weapons
  39. Jump up^ V24N3 – Battlefield Innovation
  40. Jump up^ My Way – News
  41. Jump up^ U.S. and Israel Shelved Laser as a Defense – The New York Times
  42. Jump up^ Anshel Pfeffer; Yanir Yagna (7 April 2011). “Iron Dome successfully intercepts Gaza rocket for first time”Haaretz. Retrieved 7 April 2011.
  43. Jump up^
  44. Jump up^ MUSIC Soothes the Savage… Missile?
  45. Jump up^ כלכלה – טכנולוגיה nrg – המוח הישראלי ממציא לנו פטנטים
  46. Jump up^ Israel Launches Ofeq-9 Satellite – Defense News
  47. Jump up^ Israel Weapon Industries (IWI) Ltd, Tavor Family
  48. Jump up^ Technion satellite set to blast off – The Jerusalem Post | HighBeam Research
  49. Jump up^ TECHNION FOCUS MAGAZINE – Space – Israel Conquers Space
  50. Jump up^ Israeli company develops radar system that sees through walls
  51. Jump up^ DiskOnKey – All-TIME 100 Gadgets – TIME
  52. Jump up^ USB flash drive#Creator controversy
  53. Jump up^ Wizcom Technologies Ltd (WZM.DE) Company Profile |
  54. Jump up^
  55. Jump up^ Marriott, Michel (September 19, 2002). “No Keys, Just Soft Light and You”The New York Times.
  56. Jump up^ Hesseldahl, Arik (September 18, 2002). “Typing on the table”Forbes.
  57. Jump up^ Shiels, Maggie (October 15, 2002). “The keyboard that isn’t there”BBC News.
  58. Jump up^ Kanellos, Michael (September 19, 2006). “Honda investing in chips to help cars see”CNET News.
  59. Jump up^ HP Labs : About HP Labs : HP Fellows : Abraham Lempel
  60. Jump up^ Translation co Babylon sets new Guinness record for downloads
  61. Jump up^ About the ICQ –
  62. Jump up^ Brian Blum (March 24 2011). “Top 10 iPhone apps from Israel”Israel21c. Retrieved 4 October 2013.
  63. Jump up^ “Top 10 Israeli apps that are revolutionizing your journey”. Retrieved 4 October 2013.
  64. Jump up^ ZOHAR FRIEDMAN (08/29/2012). “Appaholic: Top 5 ‘Made in Israel’ apps”Jpost. Retrieved 4 October 2013.
  65. Jump up^
  66. Jump up^
  67. Jump up^ Tomato ‘Tomaccio’
  68. Jump up^ Weizmann Wonder Wander
  69. Jump up to:a b c d e f Abigail Klein Leichman (May 10 2012). “The top 12 ways Israel feeds the world”ISRAEL21c. Retrieved 6 November 2013.
  70. Jump up^ rechargeable Fe(III/VI) super-iron cathodes
  71. Jump up^ Hydrogen fuel-cell cars developed by Israeli researchers
  72. Jump up^ Going electric with the ‘Energy Tower’ | environment
  73. Jump up^ Dan Zaslavsky’s Tower That Vacuums Up Greenhouse Gases | Green Prophet
  74. Jump up^ Israeli Company “Engineuity” Develops Car That Makes Its Own Fuel
  75. Jump up^ Interview with Zvi Tavor, Haaretz
  76. Jump up^ גאווה נשית: המצאות ישראליות שעושות לנו כבוד
  77. Jump up^,7340,L-2621280,00.html
  78. Jump up^ “Roast in the Wonder Pot”, The Kosher For Pesach Cookbook(1978). Jerusalem:Yeshivat Aish HaTorah Women’s Organization, p. 58.
  79. Jump up^ 3 מדליות זהב הוענקו להמצאות ישראליות ביריד המצאות בקוריאה (26.12)
  80. Jump up^ BBC NEWS | Science & Environment | Inventor develops ‘artificial gills’
  81. Jump up^ Rummikub® Rules – Rules To Rummy Games
  82. Jump up^ Rummikub: Old Memories
  83. Jump up^ Universal Press Syndicate: Creator Bio
  84. Jump up^ Gone Gaming: Meet Haim Shafir
  85. Jump up^ Taki – Israeli Uno English and Hebrew Instructions –
  86. Jump up^ Israeli Snacks: Bamba – Slashfood
  87. Jump up^ Our Top 10 Israeli Foods — Bring Them Home This Yom Ha’atzmaut – Jew And The Carrot –
  88. Jump up^ Martinelli, Katherine (11 July 2011). “Limonana: Sparkling Summer”Jewish Daily Forward. Retrieved 28 May 2012.
  89. Jump up^ “Ice Limonana – Mint lemonade, the drink of the Israeli summer”. Cafe Liz. 4 July 2010. Retrieved 28 May 2012.
  90. Jump up^ Eye 2 Israel » Blog Archive » Shkedei Marak » Eye 2 Israel

External links[edit]


Inventions and discoveries by nation or region
Lists of inventions or discoveries
  • Israel
Lists of inventors or discoverers
Timelines of inventions or discoveries




Guest post by Lisa Regan, writer for The Lean Startup Conference.  Entrepreneurs beyond Silicon Valley, including those working abroad, often have to retool Lean Startup methods to apply them in places with very different business cultures. On September 24 in the U.S. (September 25 in Asia), international Lean Startup experts Kevin DewaltTakashi Tsutsumi and Justin Wilcox will meet for a webcast to compare notes and hash out solutions. This event is free, and their conversation will be followed by a live Q&A for webcast attendees; register today to join them.To introduce you to some themes of this webcast, we spoke to Kevin, Takashi and Justin last week about the biggest challenges they see in implementing Lean Startup methods outside the U.S. Here’s what they had to say.

Kevin Dewalt—a speaker at this year’s Lean Startup Conference—is an entrepreneur, investor and adviser who has served as an investor for a strategic U.S. government fund and as Entrepreneur-In-Residence for the National Science Foundation. Two years ago, he moved to Beijing, where he founded Lean Startup Meetup Beijing, as well as his current venture,, a platform for leveraging one-to-one relationships to build reputation and word of mouth.

“Two years ago I moved to Beijing, where, as the founder of, I take calls from all over the world, talking entrepreneurship and innovation with people in 30-minute intervals. Those conversations can often circle around the difficulties of entrepreneurship outside Silicon Valley. I think one challenge in trying to take Lean Startup ideas outside Silicon Valley, and especially to places that are highly culturally different from the U.S., like Asia, is that the methods most of us are familiar with are actually pretty culturally specific. If you ask people in Asia about Lean Startup methods, they’ll often say, ‘I’m not sure that would work here,’ and in a sense they’re right–many of the familiar methods won’t work if applied unmodified. That’s why I recommend that people focus on ideas rather than tactics. Lean Startup ideas will work even in places as different from Silicon Valley as Asia–the specific tactics will need modifying, though.

“Think, for example, about the way we talk about sales and customer development and the idea of ‘getting out of the building.’ In Silicon Valley, you can go to people and ask them what their problems are, and what solutions they would value, and they’ll be happy to answer you. People in Silicon Valley are accustomed to openly discussing change, and to talking about what’s wrong or needs fixin —it’s culturally accepted there and you get a lot of practice at it. In most of the world, that’s just not the case. If you walk into a manager’s office almost anywhere in Asia and say, ‘I want to talk to you about your problems,’ he’ll tell you that everything’s fine, that he has no problems. He’ll probably suspect that his boss sent you. Right away, by talking in terms of problems and change, you’ve lost that person; they’ll just shut down.

“This is not to say that you can’t get out of the building in Asia, too. But you’ll have to go about it differently. Relationships are very important, and introductions are valued, even expected. You’ll need to do the legwork to get introduced, and to become known to people before you ask them for help or information.

“Another resistance or challenge faced by people starting businesses in Asia comes from within the startup itself, around getting support from co-founders and investors. There’s often a practice in Asia of locking onto the first idea as ‘the idea.’ Impatient investors and team members give little support to a founder trying to do Customer Development to verify or modify that idea. They often look on this as a waste of time. And then, when customers are not buying the product, the blame will tend to focus inward — on the founder for perceived shortcomings in the product, rather than examining the question of whether the product itself is actually solving a problem.

“What can you do in the face of such challenges? As I mentioned above, think ideas. When you find yourself getting overwhelmed with tactics, remember that the big idea of Lean Startup is search – it’s about searching for opportunity. People search differently in different cultures. To find out how they search, you need local advisers, people who understand how to apply Lean Startup methods where you are, and to do customer development in ways that are relevant to that culture.

“The good news is that those people make themselves known. The Lean Startup community is very tight and well-organized. There are Facebook pages, and Meetups, both of which are good filters for smart, passionate people around the globe. (I’ve observed that people don’t organize Lean Startup Meetups unless they’re serious.) Those organizers will in turn value the Silicon Valley perspective that you bring – you just want to make sure you let them know that you’d like them to show you how they do it where you are now.”

Many of the challenges Kevin describe resonate with Takashi Tsutsumi. Takashi has been a venture capitalist for fourteen years, investing in technology startups both in Japan and in the United States. Enthusiastic about the scientific approach for a startup, he personally translated both The Four Steps to The Epiphany and The Startup Owner’s Manual into Japanese. On weekends, he evangelizes Customer Development and runs a Lean LaunchPad class nationwide in Japan. Takashi spoke to us specifically about what it’s like to try to bring Lean Startup methodologies to a business culture as conservative as Japan’s. He described two challenges, and two pieces of good news. [Ed note: Takashi emphasized to us that his ideas here are his own and not affiliated with any companies that he works for or is involved with.]

“Japan is known for its conservatism and the norm of lifetime employment, both of which result in a lack of entrepreneurship. In this environment, I have been practicing and evangelizing Customer Development/Lean Startup for the last seven years (with great help from my teachers Steve Blank and Bob Dorf and my friend Masato Iino), facing challenges and delighted by the unexpected good effects for entrepreneurship. The following are a few examples.

“Challenge #1:  Perfectionism and detail-oriented culture

“Japanese are known for their perfectionism and the Japanese culture is highly detail-oriented. This culture particularly contradicts with minimum viable products. Entrepreneurs worry that they will lose their trust and reputation with customers if their products compromise features, UI/UX, quality, etc. In addition, although entrepreneurs come up with good MVPs, they gradually add more features as customers say that A, B, and Z are missing, resulting in a ‘maximum’ viable product instead. Therefore, one of the keys for success to practicing Lean Startup methodology in Japan is to encourage entrepreneurs to be patient in minimizing their products. I sometimes refer the nice rule of thumb from Eric Ries, ‘Take what you think is right now and cut it in half and do that two more times and ship it back.’

“Challenge #2:  Pivot is failure?

“Pivoting is a key Lean Startup concept, but in Japan, pivot mostly means failure. The Japanese perfectionism affects this thinking in that people consider it right to complete a plan once it’s developed. First, this is true for entrepreneurs. They stick to the initial idea (i.e., the hypothesis) even if facts tell them it’s wrong. They just hate to admit being wrong, or they believe themselves too much to change their mind. Second, and more important, stakeholders, such as investors and management, think this, too. Even when entrepreneurs get used to the principle of Lean Startup, in which a pivot is not necessarily a failure but is progress, their stakeholders don’t share the sensibility. Investors and management use an original (therefore unproven) plan as a yardstick, so I often hear funny conversations that effectively go like this:

VP Sales: I talked to many customers to see whether they have the problem we hypothesized and whether our solution properly fixed their problem—but none of them said yes. We should pivot.

CEO: I know, but we can’t pivot as I got approval from the board by committing to our business plan. We have to stick to our original plan untapped and carry on, even if we know we are wrong.

“I see this as the largest challenge for Lean Startup practitioners, especially in Japan. Therefore, ‘Step Zero of the Four Steps,’ or buy-in, is more important in Japan than in the Valley.

“Good news #1: Perfectionism and detail-oriented culture

“Perfectionism and detail orientation inhibit adapting Lean Startup methodology in Japan, but they turn out to be strengths once people buy in. Once they buy in, entrepreneurs in Japan follow and execute Lean Startup exhaustively.

“I see exhaustive execution of Lean Startup methodology often in the mobile/internet space. One good example is Cookpad, Japan’s top recipe site. Cookpad develops new services and features on a strict Lean Startup method. They test selling an MVP first to their colleagues, and they have to pivot if their colleagues do not pay for it. In fact, Eric Ries’s Lean Startup is mandatory reading for new hires prior to their first day. Cookpad also has their homegrown tools for hypothesis building and cohort analysis for effective execution of Lean Startup methodology. Yes, as Lean Manufacturing was the heart of 20th century Japanese manufacturing, Lean Startup’s process-oriented quality nicely fits the Japanese mind. I hope more startups and corporations in Japan execute the Lean Startup methodology in the Japanese ‘relentless’ manner.

“Good news #2: Customer Discovery nurtures entrepreneurship

“Customer Discovery is never easy in Japan. Ordinary people do not talk to strangers, knowing they hate unsolicited inquiry. However, the more customers an entrepreneur talks to, the more they learn. What surprises me, however, is that talking to customers also turns non-entrepreneurs to entrepreneurs because they feel a sense of fun and confidence in their idea. As many of you saw in our final presentation for the 2020 Olympic game city, Japanese inherently love ‘O-MO-TE-NA-SHI,’ meaning total empathy. Here’s an instance. A group of graduate students at Tokyo Institute of Technology whose goal was to be researchers, found that prospects loved their product during a Lean Launchpad class. They decided to pursue their startup idea. Three out of seven teams in this Lean Launchpad class in Osaka decided to found a company to pursue the business idea they had tested by talking to a bunch of customers. This may be an effect from the perfectionism in Japan, in that that they execute exhaustively once they believe and feel confident after Customer Discovery. I find this phenomenon an unexpected effect of Lean Startup methodology, but very interesting, particularly given that Japan must increase entrepreneurship and new startups for the revitalization of its economy.”

Finally, we talked to Justin Wilcox, another Lean Startup Conference speaker this year. Justin has started several companies that have not succeeded. This process has led him to investigate the science of entrepreneurship, a topic he spoke about at last year’s Lean Startup Conference in a talk on crowdfunding MVPs. He leads Lean Startup workshops around the world, recently spending a lot of time in Singapore and Puerto Rico. He is a mentor for both Founder’s Institute and Startup Weekend and he blogs about Lean Startup matters at He spoke about a carrot-and-stick approach to encouraging Lean Startup methods in areas where they may run up against entrenched practices.

“My experience outside the mainland U.S. has largely been in Puerto Rico and Singapore, where I’ve noticed some real differences from Silicon Valley—some that are challenges, some advantageous. One major challenge in smaller countries is that an acute sense of market size has a negative influence on people’s sense of how to talk to customers. Founders in these smaller countries sometimes think of their home country as their market, when their opportunity could be much larger. And so when we tell people that they have to get out of the building and interview X number of people in a large market (U.S., Europe, etc.), it’s naturally daunting. It’s uncomfortable enough interviewing customers—complicate that with different accents, time zones and cultural references and ‘getting out of the building’ gets harder.

“Market size plays into a broader under-confidence outside the U.S.—or perhaps it’s actually an over-confidence inside the U.S. In Singapore, for example, the first question I’m often asked is, ‘So what do you think of Singapore?’ And of course I say that it’s great, it’s extraordinary — because it is. But I notice that in the U.S we don’t ask foreigners what they think of our country because there’s a basic assumption that the U.S. is amazing. Puerto Rico and Singapore were both colonized, and I sense their histories of ceding power to some force outside and greater than themselves (foreign governments, large corporations, etc.) is reflected in their entrepreneurial culture. In that context, several Lean Startup leaders in these communities have to empower founders to take risks and embrace failure in front of friends and family—harrowing work at best, inconceivable at worst.

“My approach to confronting these issues outside Silicon Valley —really, outside the U.S.—is similar to the way I teach Lean Startup in general, which is to accept that everything about the methodology is hard, because people have to be willing and able to overcome their own basic psychological defenses. I try to encourage people to think about what they want out of life, and the ways this set of practices can help them get there, instead of only focusing on the barriers. If I can connect with an entrepreneur about what they want to accomplish, and what they are passionate about, I have an easier time persuading them to get outside themselves and beyond their usual limits and defenses.

“Of course this is difficult abroad—it is anywhere. And in my experience, people in Silicon Valley don’t have it figured out any better than people elsewhere. This gets to the advantage that people outside the U.S. can have in implementing Lean Startup. I’ve been struck by instances where I’ve been to other countries and spoken with people who really get Lean Startup, and who are shocked that all people in the Valley aren’t already doing these things. In fact, the culture of Silicon Valley, flush with success, can create its own kind of complacency, as though simply being in the right place at the right time will be enough. People working in environments that are not flooded with success will use anything they can find that will step up their game. So while the broader culture may resist entrepreneurship, individual entrepreneurs abroad can be open to trying anything, because they have to be. For instance—I would put more money on JFDI in Singapore, based on the way I see them pushing themselves, than almost any incubator in the U.S.”

Join Kevin, Takashi and Justin on September 24 (September 25 in Asia) for a free webcast to discuss these and many other issues around implementing Lean Startup ideas beyond Silicon Valley. Don’t forget to register to attend, and then prepare your questions for the live Q&A to follow the discussion!

PS. For The Lean Startup Conference, we sell tickets in blocks. When one block sells out, the price goes up. We have just a few tickets left in the current discounted block. Register today for the best prices.

The Top Facebook Marketing Companies, And The 5 Strategies They’ve Used To Help Clients Succeed

Profile shown on Thefacebook in 2005

Profile shown on Thefacebook in 2005 (Photo credit: Wikipedia)

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English: The Aviation and Missile Command can now be found on two popular social media sites, Facebook and Twitter. (Photo credit: Wikipedia)

English: Graph of social media activities

English: Graph of social media activities (Photo credit: Wikipedia)


facebook (Photo credit: sitmonkeysupreme)

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Facebook logo Español: Logotipo de Facebook Français : Logo de Facebook Tiếng Việt: Logo Facebook (Photo credit: Wikipedia)

The Top Facebook Marketing Companies, And The 5 Strategies They’ve Used To Help Clients Succeed

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BI Intelligence

There is no better window into high-tech social media marketing than to look at the work of Facebook’s preferred marketing developers, who offer the expertise and paid media-buying and analytics software to power big brand Facebook campaigns. Within this group, there’s an even more select category of fourteen “strategic preferred marketing developers,” or SPMDs.

They have privileged access, and often help Facebook develop ad products. The SPMDs are arguably the best sources to turn to when trying to assemble a coherent social media strategy.

In a recent report, BI Intelligence interviewed executives at four leading SPMDs, who pointed to the key factors driving social media marketing’s future, like the changing relationship between paid, owned, and earned media. They revealed some of the top-level strategies that they believed would drive the best social media results.

Here are some of the top SPMD inisghts: 

  1. Moving Beyond Last-Click Attribution: One Adobe client, a hospitality and entertainment group, realized their apps were driving sales through other online and offline channels. They only realized this once they stopped obsessing on the last click before a sale, and tracked customers across channels.
  2. Pre-Testing Paid Media: Other elite Facebook marketing partners like Brand Networks and Adaptly understand that owned and earned media isn’t just valuable in and of itself. It’s also valuable as a source of analytics and data that will hint at what types of content will work as paid media. One airline brand using this technique saw total reach more than double to 63% of its targeted fans.
  3. Measuring Quality Of EngagementSPMDs understand that the best metrics don’t just measure quality, but quantity too. SPMDs have the best technology and interfaces for sifting through data.
  4. Understanding Facebook Activity In Emerging MarketsSPMDs and PMDs more broadly can be marketers’ field experts, sensitizing them to seasonal, cultural, and local economic factors.
  5. Influencing Facebook Product DevelopmentSPMDs have influence at Facebook and have pushed Facebook to make many needed changes such as streamlining its paid media ad product line.

We also discussed the future of the industry.

They saw consolidation in their area — the tech side of things, as opposed to the creative side — as inevitable, and believed only the marketing developers with the best technology would win out. As more brand dollars flow into social media, some firms will be able to build scale and others will lose the race and fall by the wayside.

To access BI Intelligence’s full reports on the future of Social Media Marketing as seen by SPMDs, sign up for a free trial subscription here.

Read more:

Schedule Acceptance Test Plan during Software ...

Schedule Acceptance Test Plan during Software Development Testing Phase (Photo credit:

Lean accounting

Lean accounting (Photo credit: Wikipedia)

Roger Bacon (c.1214–1294) is sometimes credite...

Roger Bacon (c.1214–1294) is sometimes credited as one of the earliest European advocates of the modern scientific method inspired by the works of Aristotle. George Sampson (1970). #v=onepage&q=&f=false The concise Cambridge history of English literature. Cambridge University Press. p.174. ISBN 0521095816 (Photo credit: Wikipedia)

English: Abū ʿAlī al-Ḥasan ibn al-Ḥasan ibn al...

English: Abū ʿAlī al-Ḥasan ibn al-Ḥasan ibn al-Haytham as shown on the obverse of the 1982 Iraqi 10 dinar note (Photo credit: Wikipedia)

Lean angle from weight

Lean angle from weight (Photo credit: Wikipedia)

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English: a (Photo credit: Wikipedia)

The uncertainty taxonomy proposed by Tannert e...

The uncertainty taxonomy proposed by Tannert et al. EMBO reports 8, 10, 892–896 (2007) (Photo credit: Wikipedia)

English: Flowchart of the steps in the Scienti...

English: Flowchart of the steps in the Scientific Method (Photo credit: Wikipedia)



“Startup success can be engineered by following the process, which means it can be learned, which means it can be taught.”– Eric Ries

The Lean Startup provides a scientific approach to creating and managing startups and get a desired product to customers’ hands faster. The Lean Startup method teaches you how to drive a startup-how to steer, when to turn, and when to persevere-and grow a business with maximum acceleration. It is a principled approach to new product development.

Too many startups begin with an idea for a product that they think people want. They then spend months, sometimes years, perfecting that product without ever showing the product, even in a very rudimentary form, to the prospective customer. When they fail to reach broad uptake from customers, it is often because they never spoke to prospective customers and determined whether or not the product was interesting. When customers ultimately communicate, through their indifference, that they don’t care about the idea, the startup fails.

“The Lean Startup method teaches you how to drive a startup-how to steer, when to turn, and when to persevere-and grow a business with maximum acceleration.”


“Using the Lean Startup approach, companies can create order not chaos by providing tools to test a vision continuously.”


“By the time that product is ready to be distributed widely, it will already have established customers.”


The lack of a tailored management process has led many a start-up or, as Ries terms them, “a human institution designed to create a new product or service under conditions of extreme uncertainty”, to abandon all process. They take a “just do it” approach that avoids all forms of management. But this is not the only option. Using the Lean Startup approach, companies can create order not chaos by providing tools to test a vision continuously. Lean isn’t simply about spending less money. Lean isn’t just about failing fast, failing cheap. It is about putting a process, a methodology around the development of a product.


The Lean Startup methodology has as a premise that every startup is a grand experiment that attempts to answer a question. The question is not “Can this product be built?” Instead, the questions are “Should this product be built?” and “Can we build a sustainable business around this set of products and services?” This experiment is more than just theoretical inquiry; it is a first product. If it is successful, it allows a manager to get started with his or her campaign: enlisting early adopters, adding employees to each further experiment or iteration, and eventually starting to build a product. By the time that product is ready to be distributed widely, it will already have established customers. It will have solved real problems and offer detailed specifications for what needs to be built.


Learn When it is Time to Pivot+LEARN WHEN IT IS TIME TO PIVOT

A core component of Lean Startup methodology is the build-measure-learn feedback loop. The first step is figuring out the problem that needs to be solved and then developing a minimum viable product (MVP) to begin the process of learning as quickly as possible. Once the MVP is established, a startup can work on tuning the engine. This will involve measurement and learning and must include actionable metrics that can demonstrate cause and effect question.

The startup will also utilize an investigative development method called the “Five Whys”-asking simple questions to study and solve problems along the way. When this process of measuring and learning is done correctly, it will be clear that a company is either moving the drivers of the business model or not. If not, it is a sign that it is time to pivot or make a structural course correction to test a new fundamental hypothesis about the product, strategy and engine of growth.


Progress in manufacturing is measured by the production of high quality goods. The unit of progress for Lean Startups is validated learning-a rigorous method for demonstrating progress when one is embedded in the soil of extreme uncertainty. Once entrepreneurs embrace validated learning, the development process can shrink substantially. When you focus on figuring the right thing to build-the thing customers want and will pay for-you need not spend months waiting for a product beta launch to change the company’s direction. Instead, entrepreneurs can adapt their plans incrementally, inch by inch, minute by minute.

“Progress in manufacturing is measured by the production of high quality goods. The unit of progress for Lean Startups is validated learning-a rigorous method for demonstrating progress when one is embedded in the soil of extreme uncertainty.”



    You don’t have to work in a garage to be in a startup. Read More


    A startup is an institution, not just a product, so it requires management, a new kind of management specifically geared to its context. Read More


    Startups exist not to make stuff, make money, or serve customers. They exist to learn how to build a sustainable business. This learning can be validated scientifically, by running experiments that allow us to test each element of our vision. Read More


    To improve entrepreneurial outcomes, and to hold entrepreneurs accountable, we need to focus on the boring stuff: how to measure progress, how to setup milestones, how to prioritize work. This requires a new kind of accounting, specific to startups. Read More


    The fundamental activity of a startup is to turn ideas into products, measure how customers respond, and then learn whether to pivot or persevere. All successful startup processes should be geared to accelerate that feedback loop. Read More

Lean Startup


Highback-forward-lean (Photo credit: Wikipedia)

Eric Ries - The Lean Startup, London Edition

Eric Ries – The Lean Startup, London Edition (Photo credit: betsyweber)

Lean angle from weight

Lean angle from weight (Photo credit: Wikipedia)

From Wikipedia, the free encyclopedia

“Lean Startup” is a method for developing businesses and products first proposed in 2011 by Eric Ries. Based on his previous experience working in several US startups, Ries claims that startups can shorten their product development cycles by adopting a combination of business-hypothesis-driven experimentation, iterative product releases, and what he calls “validated learning“. Ries’ overall claim is that if startups invest their time into iteratively building products or services to meet the needs of early customers, they can reduce the market risks and sidestep the need for large amounts of initial project funding and expensive product launches and failures.[1][2][3][4][5]

Originally developed in 2008 by Eric Ries with high-tech companies in mind, the lean startup philosophy has since been expanded to apply to any individual, team, or company looking to introduce new products or services into the market.[2] Today, the lean startup’s popularity has grown outside of its Silicon Valley birthplace and has spread throughout the world, in large part due to the success of Ries’ bestselling book, The Lean Startup: How Today’s Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses.[6]


Main article: Eric Ries

Ries developed the idea for the Lean Startup from his experiences as a startup advisor, employee, and founder.[7][8][9] His first startup, Catalyst Recruiting, failed because they did not understand the wants of their target customers, and because they focused too much time and energy on the initial product launch.[10][11] After Catalyst, Ries was a senior software engineer with There, Inc.[10][11] Ries describes There Inc. as a classic example of a Silicon Valley startup with five years of stealth R&D, $40 million in financing, and nearly 200 employees at the time of product launch.[11] In 2003, There, Inc. launched its product,, but they were unable to garner popularity beyond the initial early adopters.[11] Ries claims that despite the many proximate causes for failure, the most important mistake was that the company’s “vision was almost too concrete,” making it impossible to see that their product did not accurately represent consumer demand.[11]

Although the lost money differed by orders of magnitude, the failures of There, Inc. and Catalyst Recruiting share similar origins, with Ries stating that “it was working forward from the technology instead of working backward from the business results you’re trying to achieve.”[2] Ries began to develop the lean startup philosophy from these experiences, and from others observed by working in the high-tech entrepreneurial world.[11][12]



The lean startup philosophy is based on lean manufacturing, the streamlined production philosophy developed in the 1980s byJapanese auto manufacturers.[13] The lean manufacturing system considers as waste the expenditure of resources for any goal other than the creation of value for the end customer, and thus a target for elimination. In particular, the system focuses on minimizing inventory throughout the assembly line.[13] Kanban cards are used to signal only when the necessary inputs to production are needed, and in so doing, reduce assembly waste (Inventory) and increase productivity.[14] Additionally, immediate quality control checkpoints can identify mistakes or imperfections during assembly as early as possible to ensure that the least amount of time is expended developing a faulty product.[13] Another primary focus of the lean management system is to maintain close connections with suppliers in order to understand their customers’ desires. In a recent article published in the Harvard Business Review, Ries’ mentor Steven G. Blank describes how the lean method also draws its inspiration from the work of people like Ian C. MacMillan and Rita Gunther McGrath who developed a technique called discovery driven planning which was an attempt to bring an entrepreneurial mindset to planning [15]

In 2008, Ries took the advice of his mentors and developed the idea for the lean startup, using his personal experiences adapting lean management principles to the high-tech startup world.[10][16] In September 2008, Ries first coined the term on his blog, Startup Lessons Learned, in a post called “The lean startup.”[17]

Lean startup[edit]

Similar to the precepts of lean management, Ries’ lean startup philosophy seeks to eliminate wasteful practices and increase value producing practices during the product development phase so that startups can have a better chance of success without requiring large amounts of outside funding, elaborate business plans, or the perfect product.[16] Ries believes that customer feedback during product development is integral to the lean startup process, and ensures that the producer does not invest time designing features or services that consumers do not want.[18] This is done primarily through two processes, using key performance indicators and a continuous deployment process.[19][5][20] Because startups typically cannot afford to have their entire investment depend upon the success of one single product launch, Ries maintains that by releasing a minimum viable product that is not yet finalized, the company can then make use of customer feedback to help further tailor their product to the specific needs of its customers.[5][16][21]

The lean startup philosophy pushes web based or tech related startups away from the ideology of their dot-com era predecessors in order to achieve cost-effective production by building a minimal product and gauging customer feedback.[2] Ries asserts that the “lean has nothing to do with how much money a company raises,” rather it has everything to do with assessing the specific demands of consumers and how to meet that demand using the least amount of resources possible.[10]


In his blog and book, Ries uses specific terminology relating to the core lean startup principles.

Minimum viable product[edit]

minimum viable product (MVP) is the “version of a new product which allows a team to collect the maximum amount of validated learning about customers with the least effort.”[1][22] The goal of a MVP is to test fundamental business hypotheses (or leap-of-faith assumptions) and to help entrepreneurs begin the learning process as quickly as possible.[1] As an example, Ries notes that Zapposfounder Nick Swinmurn wanted to test the hypothesis that customers were ready and willing to buy shoes online.[1] Instead of building a website and a large database of footwear, Swinmurn approached local shoe stores, took pictures of their inventory, posted the pictures online, bought the shoes from the stores at full price, and sold them directly to customers if they purchased the shoe through his website.[1] Swinmurn deduced that customer demand was present, and Zappos would eventually grow into a billion dollar business based on the model of selling shoes online.[1] See also Pilot experiment.

Continuous deployment[edit]

Continuous deployment is a process “whereby all code that is written for an application is immediately deployed into production,” which results in a reduction of cycle times.[23] Ries states that some of the companies he’s worked with deploy new code into production as often as 50 times a day.[23] The phrase was coined by Timothy Fitz, one of Ries’s colleagues and an early engineer at IMVU.[1][24] See also Continuous delivery.

Split testing[edit]

A split or A/B test is an experiment in which “different versions of a product are offered to customers at the same time.”[1] The goal of a split test is to observe changes in behavior between the two groups and to measure the impact of each version on an actionable metric.

A/B testing can also be performed in serial fashion where a group of users one week may see one version of the product while the next week users see another. This can be criticized in circumstances where external events may influence user behavior one time period but not the other. For example a split test of two ice cream flavors performed in serial during the summer and winter would see a marked decrease in demand during the winter where that decrease is mostly related to the weather and not to the flavor offer.

Actionable metrics[edit]

Actionable metrics can lead to informed business decisions and subsequent action.[25][1] These are in contrast to ‘vanity metrics’ – measurements that give “the rosiest picture possible” but do not accurately reflect the key drivers of a business.

Vanity metrics for one company may be actionable metrics for another. For example, a company specializing in creating web based dashboards for financial markets might view the number of web page views[20] per person as a vanity metric as their revenue is not based on number of page views. However, an online magazine with advertising would view web page views as a key metric as page views are directly correlated to revenue.

Typical examples of a vanity metric are the number of new users gained per day. While a high number of users gained per day seems beneficial to any company, if the cost of acquiring each user through expensive advertising campaigns is significantly higher than the revenue gained per user, then gaining more users could quickly lead to bankruptcy.


A pivot is a “structured course correction designed to test a new fundamental hypothesis about the product, strategy, and engine of growth.”[1] A notable example of a company employing the pivot is Groupon; when the company first started, it was an online activism platform called The Point.[4] After receiving almost no traction, the founders opened a WordPress blog and launched their first coupon promotion for a pizzeria located in their building lobby.[4] Although they only received 20 redemptions, the founders realized that their idea was significant, and had successfully empowered people to coordinate group action.[4] Three years later, Groupon would grow into a billion dollar business.

The Lean Startup book[edit]

Ries’ book, The Lean Startup: How Today’s Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses, was published in September, 2011 by Crown Business Publishing, which is a subsidiary of Random House.[26] Due to the popularity of the lean startup philosophy prior to the release of his book, The Lean Startup was highly anticipated, and quickly became a #2 New York Times bestseller.[6][27] The book’s popularity has helped to further promote the lean startup philosophy, which is used by both startups and more mature companies.[28][29][30] Amazon listed the book as one of their Best Business Books of 2011, and as of June 2012, the book has sold 90,000 copies.[31][32]

The Movement[edit]

After introducing the concept on his blog, Startup Lessons Learned, Ries’ lean startup philosophy became widely popular within Silicon Valley tech startups.[2][6] Ries now sits on many advisory boards for tech companies and investment funds, frequently gives interviews and presentations on the lean startup, and has also created his own annual technology conference called Startup Lessons Learned which has subsequently changed its name to the Lean Startup Conference.[33][2][34][10][26][9][11]

Ries travels constantly to promote the Lean Startup philosophy at conferences, and estimates that Lean Startup meetups in cities around the world garner 20,000 regular participants.[2] The first Lean Startup meetup named Lean Startup Circle was created by Rich Collins on June 26th, 2009[35] hosting speaking events, workshops, and roundtable discussions. As of 2012, there are lean startup meetups in over 100 cities and 17 countries[36] as well as an online discussion forum with over 5500 members.[37] Third-party organizers have led Lean Startup meetups in San FranciscoChicagoBostonAustinBeijing, ChinaDublin, Ireland, and Rio de Janeiro, Brazil, among others—many of which are personally attended by Ries—with the New York City Lean Startup Meetup attracting over 2,500 members.[38] [39][40][41][42][43] Ries hosted the Lean Startup Track at SXSW 2012 with Dave McClureSteve BlankRobert Scoble, and dozens of other entrepreneurs and investors.[44][45] The Lean Startup Machine created a new spin on the Lean Startup meetups by having attendees start a new company in three-days[citation needed]. As of 2012, the Lean Startup Machine has created over 600 new startups this way.[46]

Several prominent high-tech companies have begun to publicly employ the Lean Startup philosophy, including IntuitDropBox,WealthfrontVotizenAardvark, and Grockit.[7][18][47] The Lean Startup principles are also taught in classes at Harvard Business Schooland are implemented in municipal governments through Code for America.[31]

In addition, the United States Government has recently begun to employ many of the lean startup ideas pioneered by Ries. The Federal Chief Information Officer of the United StatesSteven VanRoekel noted that he is taking a “lean-startup approach to government.”[48]Ries has also worked with the former and current Chief Technology Officers of the United StatesAneesh Chopra and Todd Parkrespectively—to implement aspects of the lean startup model into the United States Government.[49][50][51] In particular, Park noted that in order to understand customer demand, the Department of Health and Human Services, recognized “the need to rapidly prototype solutions, engage customers in those solutions as soon as possible, and then quickly and repeatedly iterate those solutions based on working with customers.”[52][53] [54] In May 2012, Ries and The White House announced the Presidential Innovation Fellows program, which brings together top citizen innovators and government officials to work on high-level projects and deliver measurable results in six months.[55] called 2011 “the year of the lean startup,” and Fast Company noted that the movement is “less about how to make web startups more successful and entrepreneurs richer than it is a fundamental reexamination of how to work in our complicated, faster-moving world.”[4][56] Additionally, The New York Times noted that the Lean Startup is a “fresh approach to creating companies that has attracted much attention in the last year or so among Silicon Valley entrepreneurs, technologists and investors.”[29]


In one commentators’ view, the Lean Startup has become an under-questioned orthodoxy, and they have tried to counterbalance it by pointing out some of its limitations.[57]

Some commentators have also pointed out that in their opinion the majority of backing for The Lean Startup Methodology is anecdotal and that it has not been rigorously validated yet.[58][59] Perhaps this is a result of (1) the significant challenges involved in empirically validating the effectiveness of an entrepreneurial framework, given a number of exogenous variables and (2) the difficulty in defining “effectiveness” or “success” when assessing the methodologies value.


  1. a b c d e f g h i j Ries, Eric (2011). The Lean Startup: How Today’s Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses. Crown Publishing. p. 103.ISBN 978-0-307-88791-7.
  2. a b c d e f g Roush, Wade. Eric Ries, the Face of the Lean Startup Movement, on How a Once-Insane Idea Went MainstreamXconomy. July 6, 2011.
  3. ^ The Lean Startup TESS SearchUnited States Patent and Trademark Office. September 6, 2011.
  4. a b c d e Penenberg, Adam. Eric Ries Is A Lean Startup MachineFast Company. September 8, 2011.
  5. a b c Adler, Carlye. Ideas Are Overrated: Startup Guru Eric Ries’ Radical New TheoryWired. August 30, 2011.
  6. a b c Bury, Erin. How Eric Ries Changed the Framework for Startup SuccessSprouter. December 7, 2011.
  7. a b Lohr, Steve. The Rise of the Fleet-Footed Start-UpThe New York Times. April 24, 2010.
  8. ^ Solon, Olivia. Interview: Eric Ries, Author Of The Lean StartupWired. January 17, 2012.
  9. a b Eric RiesBusiness Week.
  10. a b c d e Loizos, Connie. “Lean Startup” evangelist Eric Ries is just getting startedReuters. May 26, 2011.
  11. a b c d e f g Venture Capital: Eric Ries, author of “The Lean Startup”YouTube. November 21, 2009.
  12. ^ Wealth Front. Advisors to WeathfrontWealthfront Inc.. 2012.
  13. a b c What is Lean Manufacturing?wiseGEEK.
  14. ^ Griffith,C. (2012). “Introduction to Lean”.
  15. ^ Blank, S. (2013). “Why the Lean Start-Up Changes Everything.” Harvard Business Review 91(5): 63-72.
  16. a b c Creating the Lean StartupInc. Magazine. October 2011.
  17. ^ The lean startupStartup Lessons Learned. September 8, 2008.
  18. a b Tam, Pui-Wing. Philosophy Helps Start-Ups Move FasterThe Wall Street Journal. May 20, 2010.
  19. ^ Ries, Eric. Are You Building The Right Product? “TechCrunch. September 11, 2011.
  20. a b Schonfeld, Erick. Don’t Be Fooled By Vanity MetricsTech Crunch. July 30, 2011.
  21. ^ Butcher, Mike. Interview with Eric Ries, author, The Lean Startup. January 17, 2012.
  22. ^ Ries, Eric. Minimum Viable Product: a guideStartup Lessons Learned. August 3, 2009.
  23. a b Ries, Eric. Continuous deployment in 5 easy steps.O’Reilly Radar. March 30, 2009.
  24. ^ Continuous Deployment at IMVU: Doing the impossible fifty times a dayTimothy Fitz. February 10, 2009.
  25. ^ Ferriss, Tim. Vanity Metrics vs. Actionable Metrics – Guest Post by Eric Ries. May 19, 2009.
  26. a b Wellons, Mary Catherine. Startup Lessons From a Pro: Eric Ries on ‘The Lean Startup’TechCrunch. September 19, 2011.
  27. ^ NYTimes. October 2, 2011 Best SellersThe New York Times. October 2, 2011.
  28. ^ Kopytoff, Verne. Trendspotting at TechCrunch DisruptThe New York Times. September 14, 2011.
  29. a b Lohr, Steve. The Rise of the Fleet-Footed Start-UpThe New York Times. April 24, 2010.
  30. ^ Parsons, Sabrina. Pitching Your Business vs. PLanning Your BusinessForbes. February 29, 2012.
  31. a b Greenwald, Ted. Upstart Eric Ries Has the Stage and the Crowd Is Going WildWired. May 18, 2012.
  32. ^ Best Books of 2011: Business & InvestingAmazon.
  33. ^ Ries, Eric. Announcing 2012 Lean Startup June 27, 2012
  34. ^ Glenn, Devon. Eric Ries on What Every Startup Should Ask Their CustomersMedia Bistro. August 9, 2010
  35. ^ Lean Startup Circle San Francisco
  36. ^ Ewel, Jim. Why Marketing Must Also be LeanAgile Marketing. March 3, 2012.
  37. ^ Collins, Rich. New Leadership Lean Startup Circle. April 28, 2012.
  38. ^ Faircloth, Kelly. Startup News: Let’s Launch the Summer with a New York Tech Meetup and Loads of New Features.BetaBeat. May 30, 2012.
  39. ^ Eric Ries – Lean Startup DublinEventbrite.
  40. ^ Wilson, Fred. LeanBusiness Insider. September 16, 2011.
  41. ^ Goodison, Donna. ‘Lean Startup’ Guru Shares His Secrets.Hispanic Business. September 27, 2011.
  42. ^ Lean Startup RioMeetup.
  43. ^ Lean Startup Meetup BeijingMeetup.
  44. ^ The Lean Startup SxSW TrackSxSW.
  45. ^ Lean Startup Author Eric Ries Added to 2012 Programming.SxSW.
  46. ^ Mashable. Why Startup Founders Need to Talk to Their Customers.
  47. ^ Case StudiesThe Lean Startup.
  48. ^ Stacy, Michael. U.S. CIO VanRoekel talks startups, savings, new tech in Iowa visitSilicon Prairie News. April 5, 2012.
  49. ^ Lean GovernmentStartup Lessons Learned. May 30, 2012.
  50. ^ Government as a Startup with ‘The Lean Startup’ Author Eric RiesFed Scoop Radio. March 19, 2012.
  51. ^ McKendrick, Joe. In search of the US government’s inner ’startup:’ federal CIOSmartplanet. October 28, 2011.
  52. ^ Making a Difference: Innovation Pathway and Entrepreneurs in Residence U.S. Food and Drug Administration. April 10, 2012.
  53. ^ Foley, John. Busting Through The Federal IT Budget CeilingInformationWeek. April 30, 2012.
  54. ^ Wilson, Paul. The top five Lean Startup mythsNet Magazine. April 2, 2012.
  55. ^ Park, Todd. Wanted: A Few Good Women and Men to Serve as Presidential Innovation FellowsThe White House Blog. May 23, 2012.
  56. ^ Bernhard, Jr., Kent. The Biggest Idea of 2011: Think December 30, 2011.
  57. ^ Fat Startup: Lessons from my failed Lean Startup.
  58. ^ Empirically Validating The Lean Startup: Making A Startup Great By Choice.
  59. ^ The Lean Startup: Benefits and Criticisms.

External links[edit]