Book Brief: Startup Nation

The Story of Israel’s “Economic Miracle”

Brief Summary

Title: Start-Up Nation: The Story of Israel’s Economic Miracle
Authors: Dan Senor & Saul Singer
Published: 2009 by Twelve Books
What It Teaches: Start-Up Nation seeks to explain why Israel produces more start-ups and entrepreneurs per capita than other countries. Along the way, the book tells the history of the modern nation and describes the country’s culture.
When To Use It: Start-Up Nation should be most helpful to policy makers who can influence similar factors to increase entrepreneurship and innovation within their communities. Others will find the stories interesting and informative, especially in light of continuing conflict in the Middle East.

Brief Review

I read many books about startups and I expected Start-Up Nation to be like many others — telling inspiring stories about amazing companies and their founders, with lessons along the way that all of us can apply in our own businesses. I was surprised. This isn’t one of those books.

Yes, it tells stories about amazing companies, their products, and the people behind them, but very few of the lessons shared can be applied within individual companies. The focus of the book is on the modern nation of Israel. It tells the story of the start-up that is Israel itself and it tells what it is about this country that has led to the launch of many more start-up businesses with much more success per capita than is found anywhere else in the world. The lessons learned and shared are applicable at the broad community level — most often at the national level, although some lessons may also be applicable at the state or city level.

I started reading Start-Up Nation several weeks ago, before Hamas terrorists invaded Israel. As I read the Forward by former prime minister and president Shimon Peres, I was concerned the book would be a “puff piece”, telling the story of Israel in an overly positive manner. I know the issues behind the continuing unrest in the Middle East are far more complex than I can claim to appreciate, but the tone and the claims of the Forward put me on notice that the rest of the book would clearly be told from the Israelis’ perspective.

As an entrepreneur, technologist, and business consultant, the stories of start-up businesses and their founders told throughout Start-Up Nation were interesting. However, the book is old enough that most of the companies mentioned disappeared long ago and the technology advances they championed have long since been surpassed. The much more interesting aspects of the book were the telling of the stories of the modern nation itself.

I emphasize that the book is about the modern nation of Israel. There are very few references to the ancient nation established by God: promised to Abraham, Isaac, and Jacob, populated following the exodus Moses led out of Egypt and the conquest led by Joshua. The only meaningful references to the Jewish religion relate to attacks by the country’s surrounding enemies timed to Jewish high holy days (like the most recent one).

The history of modern Israel is largely defined by its relationship with those enemies. Much of the scrappiness and technology innovation that has fueled the country’s business success was forged in the fires of creating — out of almost nothing — an ability to defend Israel against stronger enemies on every side. Much of the resourcefulness and ability to challenge the status quo that has launched successful start-ups has been nurtured through a shortage of people and resources in the face of immediate need.

Over the years I have often worked with companies and entrepreneurs from Israel. Start-Up Nation has given me new insights into the culture and operating approach that has shaped those interactions. What I have learned from the book will undoubtedly help me to be a better partner when I work with Israelis and their companies in the future.

But more than anything, Start-Up Nation has helped me better understand the Israeli experience from the birth of the nation 75 years ago to today. Because the book was written in the language of business, I can more easily understand and appreciate the stories being told. These stories help me understand what I see on the news: the long standing animosity, the geography of the surrounding Israeli enemies, the nature of the Israeli Defense Force (IDF), the close-knit relationships across the country underlying statements that everyone knows someone killed or taken hostage, and the strength of the national identity.

Bottom Line: Start-Up Nation tells many interesting stories about the start-up nation that is modern Israel along with technology start-up companies born out of the unique mix of cultural, demographic, military, geographic, and historical factors that shape how Israelis think, innovate, and act. Although the lessons learned may have few direct applications inside of our businesses, the book still gives us much to consider about the world in which we live.