Stellar Start-Ups: Multinational R&D centers as start-ups

They may be owned by large multinationals, but the research-and-development centers in Israel are more like start-ups, at least in spirit. They tackle thorny problems for their parent companies and invent new products and services that sometimes go on to change the direction of the multinationals, who find that the new product developed by their Israeli R&D unit has given them access to whole new markets and customers!

Like a start-up, a R&D center is expected to be innovative, flexible and generate new investments for its owners.

Without innovation, large companies end up stultifying; many of them rely on their R&D units to come up with the new innovations that will allow them to maintain their edge in the market. And many multinationals see Israel as their best bet when it comes to R&D, because of Israel's proven track record when it comes to innovation.

"We've found a huge pool of scientists, engineers and mathematicians full of innovative ideas. Israelis tend to think 'out of the box,' a trait highly valued at Google," says Brand.

I could go on and on - but you get the idea. Multinationals like Microsoft, Cisco and many others see their R&D centers as a great vehicle with which to tap into the "start-up spirit" of Israeli hi-tech professionals. In the words of Microsoft Israel CEO Danny Yamin, "Microsoft sees Israel as an excellent source of innovative workers, and we at MS Israel are proud of our contribution to Microsoft's worldwide development."

And Cisco's Israel director Bina Rezinovsky recently told the Post that "Israelis are imaginative, and they are familiar with technology, two traits that make the human resources of the country very valuable to Cisco."

They're just the traits that make start-ups so dynamic and innovative. Times may be tough, but they won't be forever. And when the economy does improve, Israeli hi-tech will be in a position to roar ahead, with the multinationals continuing to tap into their R&D "start-ups" for their next big thing!


Source: Jerusalem Post, David Shamah 03/05/2009