As Israel’s largest and earliest industrial park， MATAM Park is home to branch offices of many domestic as well as international hi-tech companies， including Intel， Microsoft， Google， Philips and IBM.
With 8，000 staff， this 220，000-square-meter park is mainly supported by talent and educational resources from University of Haifa. Located on an arterial road， MATAM park enjoys convenient transportation. The park provides its residents with completed community service facilities including children’s center， medical clinic， transportation infrastructure， post office， gas station and parking lot. Powered by two transformers in Haifa， the park will still receive electricity supply when struck by power failure. As MATAM Park attaches great importance to greening and environmental construction， lawns， squares， avenues， vegetation and sculptures can be found everywhere here， giving a natural touch to the park.
Figure 1: Sketch map of MATAM Park
As the representative of various Israeli science parks， MATAM Parks owes its success to the following reasons:
1. Valuing education. In Jewish culture， education is put before everything. Acknowledged as a country with the most advanced level of education in the world， Israel has produced 20% of Nobel winners. In Israel， every 1 in 1844 starts their own business. 60 years since its foundation， Israel’s GDP per capital has reached USD 23，000， making it among countries of the highest human development index.
2. Government support. It has been long since Israel government launced the strategy of development by science and technology. Guided by the strategy and supported by rich resources of hi-tech talents， Israel’s hi-tech industry has witnessed a rapid development， earning it reputation worldwide. In recent years， more and more multinational companies choose Israel for their R&D centers. Data show that from 1984 to 2014， Israel has increased its R&D budget by 22%， and the number of university students in Israel has increased by 378%. Over 250 countries， including 80 Fortune 500 companies has established their R&D labs in Israel. In 2016， among 7，072 hi-tech companies in Israel， 25% are Internet companies， 20%， telecommunications companies， 19%， IT and software companies， 17% health care companies， 9% clean energy companies and 2%， semiconductor companies.
Figure 2: A large number of multinational companies establish R&D centers in Israel
3. Advanced incubators: Israel is widely acknowledged to have the world’s most advanced incubators. Israeli government bears the highest risk for start-ups in their early stage while does not share their profits. In 1991， Israeli government established Office of the Chief Scientist and initiated international technological incubator project， a highly innovative project of high social investment risk at the same time， to provide dedicated support to start-ups. Under the project， the incubator will provide 2-year training and investment of USD 500，000 to 800，000 for start-ups. If the start-ups succeed in entering into market financing， they should pay 3%-5% of their profits back to the government， or otherwise， they don’t need to return the investment.
4. Attractiveness for venture capitals: In 2017， Israeli hi-tech companies completed 620 rounds of financing with a total value of USD 5.24 billion (M&A transition excluded)， a 9% increase compared to 2016’s USD 4.83 billion. Data show that among all Israeli start-ups， 84% are funded by foreign investment， primarily from the U.S. In recent years， investment from China and other countries have been growing constantly but the U.S. still secures the dominant position.
Figure3: Israel’s venture capitals in recent years