Role of military in the entrepreneurial ecosystem
ENTREPRENEURSHIP is viewed by many as an engine for economic growth. Therefore, it is critical to encourage entrepreneurial behaviour by creating ecosystems which connect various key players of the economy. These ecosystems must create value by connecting the main actors in a welldefined region to develop startups.
A well-functioning entrepreneurial ecosystem is a driver of economic prosperity, innovation and national competitiveness. The success of such an ecosystem depends on the interconnectedness of policies and synergistic interrelationships among its stakeholders. The military is viewed as a key player in such an ecosystem. Its role has been recognised in several technological breakthroughs that have changed human life globally. It has been used as a breeding ground for several start-up companies. Credit is often given to the military’s role in the success of the high-tech industry globally.
For example, Israel is named a start-up nation or innovation nation because of the number of start-ups that have emerged as a result of the establishment of the innovation ecosystem anchored by the military. The military has long been known as an incubator for high-tech firms started by former soldiers with some entrepreneurs using their military knowledge to develop physical tools as well. It is important to note that a number of start-ups are emerging from the military with spill-over effects to the private sector and civilian life. Several global entrepreneurs are people who retired from the military or have indirect connections to the military. Many start-ups are based on technical innovations that originated in the military. In its 2011 report, the US Small Business Administration states that over 2,4 million small businesses in the US are owned by retired military officers.
Why the military?
About 30 nations have compulsory military service which lasts longer than 18 months. Most of these countries are developing. Among first-world countries, only three require such a lengthy period of military service: Israel, South Korea and Singapore. These countries have instituted national service policies where young girls and boys at the age of 18 undergo military training for at least two years in special military units before going to university. These young boys and girls come out of these units more mature to solve any life challenges. The national service programme has produced men and women who have founded startups which have changed human life globally. Research collaborations between government, private sector, academia, and the military have helped produce cuttingedge technologies globally.
In a study titled: Best Practices and Lessons Learned in ICT Sector Innovation: A Case Study of Israel, Daphne Getz and Itzhak Goldberg described the players in the Israeli innovation ecosystem model based on two key economic sectors (research — universities and commercial — private sector) that include physical resources such as funds, equipment and facilities as well as human capital, such as students, faculty, staff, industry researchers and industry representatives.
Both are crucial to the ecosystem’s success. The institutional entities participating in the ecosystem include the universities, transfer technology offices at universities, some of the colleges, business schools within the universities, business firms and enterprises, venture capitalists, industry-university research institutes, government supported centres of excellence within the universities, the military, and, last but not least, government and local economic development and business assistance organisations and funding agencies.
According to Israeli Prime Minister Benjamin Netanyahu, the Massachusetts Institute of Technology houses one of the military units where cutting-edge researches are carried out in collaboration with the academia. Israel, for example, has done what no other country has done to purposefully integrate its private, scholarly, government and military cyber-expertise in the middle of the Negev Desert, to create a cyber-security ecosystem that has cemented its place as a major digital power. This has brought research
universities and large firms, a talent pool drawn from around the world, military units, and access to venture capital and government research and development (R&D) funding into proximity. This ecosystem, according to Senor and Singer in their book: Start-Up Nation — The story of Israel’s Economic Miracle, is one reason for Israel’s success.
In addition, the authors contend that Israel has a unique entrepreneurial culture that combines individualism, egalitarianism and nurturing. Senor and Singer views the military and its impact on the lives of all young Israelis as central to the creation of the culture, skills and personality traits that help the entrepreneurial spirit to flourish. Not surprisingly, most of the Israeli technology companies that trades on the NASDAQ are either founded by a military officer or have alumni situated in key military units. The Israeli military unit (Talpiot) has been nicknamed the “Israeli Defence Forces (IDF)’s incubator for Israel’s future chief executive officers”.
What is the Talpiot?
The Talpiot is a unit which takes the process of extreme selectivity and extensive training to an even higher level, especially in the realm of technological innovation in the IDF. The name Talpiot comes from a verse in the Bible’s Song of Songs that refers to a castle’s turrets; the term connotes the pinnacle of achievement. Talpiot has the distinction of being both the most selective unit and the one that