Israel-German business relations are at an all-time high, and the relationship between both countries has never been better. Clearview Partners was just in Berlin meeting with organizations facilitating trade between the two economic powerhouses, and we must report back that we are very optimistic about where things are headed.
Whereas we see possible political uncertainty and economic slowdown in other parts of Western Europe, Germany has been able to continually grow and remain an economic bedrock in its role as part of the EU. While both countries have been dealing with political changes they have been able to leverage their human capital to fully dominate several fields, particularly in tech. In many parts of Western Europe there is a social stigma around failure, and you can’t have innovation without failure (or grow a startup ecosystem without it), Germany has been able to create one of the strongest tech ecosystems not just in Europe but in the world. And Israeli tech is playing a part in that growth.
Dual innovation capitals
Both Tel Aviv and Berlin have a hipster vibe to them (and could compete as being the top spots in the world for the traveling millennial); both are home to bohemian and artist culture, a culture which adapts itself well to the overall culture of innovation needed to develop a successful ecosystem. There has been an influx of US venture money into startups in the Berlin ecosystem as it has become one of the most desirable ecosystems to invest in, in addition to local funds (who are also investing in Israel). Israeli startups have begun building their businesses in Berlin and have found Berlin to be a favorable environment with talent, available funding, and a large German market.
Real estate is an industry where many Israeli investors have been active as well, so it is no surprise that working spaces and restaurants whose origin has been in Tel Aviv have begun to spring up. An example of a popular Israeli brand which has opened in Berlin (and Munich) is the high-end co-working space Mindspace; it’s co-working spaces like these which help foster innovation in both cities. Notable in their work in helping facilitate business relations between both countries is the German-Israeli Chamber of Industry and Commerce, an official government body lead by Grisha Alroi Arloser. The strength of these relationships could not happen without strong government support from both countries.
The future of driving
The most disruptive technology in which we will really feel a change in our daily lives are driverless cars and automated transportation; aside from the changes on the societal level automakers are scrambling to find new ways to monetize services as well as be the first ones to market. In the United States automakers like GM have stated this intent, but one should not count the German automakers out.
German powerhouse automakers such as BMW and Mercedes Benz have doubled down on their interest in the Israeli ecosystem as Israel’s automated transportation ecosystem continues to grow and has become one of the most robust ecosystems in the field. The Israeli tech ecosystem has been well suited to dominate the automated transportation space because of the country’s technical talent, understanding of fields related to transportation, and experience in working with multinationals looking for innovation. In fact, Mercedes Benz has opened an R&D center in Israel to tap into this talent, and BMW has partnered with Israel based Innoviz Technologies for its driverless cars. These are partnerships which will continue to grow as the race to introduce this technology will intensify.
Business relationships between both countries will continue to grow, particularly as human capital, startup culture, and innovation will be the razor’s edge of what makes the difference in an economy’s success. Win-win relationships such as these will continue to develop; here at Clearview Partners we’re looking forward to being a part of the conversation between both countries.
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The Clearview Team