Shared Society Through Technology

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Our Rationale• The hi-tech industry is Israel’s engine of growth• Israel spends more of its GDP on R&D than any

OECD country • … Yet, Arab citizens do not participate

Integration of Arab citizens into the high-tech industry is a prototype for a fair and just society in Israel

Israel is considered an

economic miracle

Israeli hi tech is*…

• 3,000 tech companies

• Over 500 companies with yearly revenues over $20m

• 200 new start-ups created every year

• 3rd largest non-USA country on NASDAQ

• Comprises over 40% of Israel’s export

Civilian R&D Investments

Page 6 * Figures- Israeli Association of Electronics & Software Industries

Over 50% of Arab families in poverty

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The highest poverty rate in the OECD

Israel has two economies

Jewish economy Arab economy60% participating 40% workforce participation

57% working 21% of women work8,086 NIS 5,419 NIS Average/capita income

85,000 engineers 1,000 employed in engineering positions

15 zones 0 hi-tech industrial zones

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Arab Cities Need High-Tech

• Will advance economic sustainability:– Municipal income– Higher paid employment– Increase employment rates (each hi-tech job creates 1-2 additional

jobs)– Retain higher education citizens

• Hi-tech requires relatively smaller infrastructure investment• Hi-tech is the strongest productive sector that can create jobs

Tsofen is changing this reality by working with the government, local authorities and companies

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• Improve employment and training of Arab sector

• Invest more in public infrastructure for Arab population

• Ensure that existing public job quotas for the disadvantaged (esp Arabs and Ethiopians) are met

Our model is aligned with OECD recommendations for Israel

BUZZZZ

Train & Place

Getting Government to Act

Community Building

Job Creation

2008: 25 engineers in Nazareth

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Nazareth hi-tech center

2012:

Government Companies Municipalities

Arab professional community and grads

Tsofen’s model of operation

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Working With the Arab community

• Malakom for biz community & SU scene

• Hackathon for hi tech community

• Technical workshops for students

• Meetups for entrepreneurs community

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Since Our Inception: Major Changes

• Arabs in high-tech have tripled to 1,000• Nazareth transformed into a high-tech hub• The high-tech industry is taking notice

“Israeli high-tech needs Arab Human Capital more than Arab sector needs high-tech industry” Elisha Yanay, Chairman of the Israeli Association of Electronic and Software Industries

• Government is engaged• Media is committed

The Future is here

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2013 :New Strategic Emphasis• Government Advocacy & Cooperation• Business Development & Job Creation

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2013 -2018 :Getting national• Tsofen’s model to become national, hand in hand

with Israeli Government• “Clean” industrial zones in Arab cities

2018 and up: closer and closer to a Shared Society in Israel

• Applying Tsofen’s Model to new domains

• Government advocacy & business development

• Nazareth: advancing the leading hi tech center of the Arab community

• Triangle Center: employment of women• Mentorship program: from pilot to project• Exposure to Industry: university workshops

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2013 Projects

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• Rationale: There is a growing need for human capital in high-tech. Arabs are the answer. Government budgets should be channeled to infrastructure in Arab cities and industry support

• Activities: Recruiting a senior business development manager; companies’ leaders with business models; position papers and lobbying

• Outputs: 3-4 business models; 2 position papers; leveraging government subsidies to employers; kick-starting a governmental effort towards one hi tech park in an Arab city

• Prospects for Success: “Win Win” for all stakeholders; Success of Tsofen model in Nazareth; growing need for human capital

• Budget 2013: $150,000

Government Advocacy & Bus Dev

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Nazareth- advancing the leading hi tech center of the Arab community

• Rationale: The successful and sustainable center in Nazareth is Tsofen’s core operation, every advancement depends primarily on its maintenance and advancement.

• Activities: maintaining the hi tech training and employment center; keep on being the leading provider of placements to hi tech firms in the region; bringing more companies to branch or outsource projects to Nazareth; maintain relations with Nazareth municipality; escort Amdocs in its branching activities ; keep the scene vibrant

• Outputs: 3 courses; 80-90 placements; 2 professional events; meet-up forum(s) for Startups

• Prospects for Success: professional and financial sustainability for 4 years now; national BUZZ before and after Amdocs’ announcement

• Budget 2013: $600,000

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Triangle center, and women employment• Rationale: A second successful Hi-Tech center in an Arab city will prove

the scalability of the Tsofen model

• Activities: Establish a Tsofen training office; Engage with initial interested companies; Develop business models for companies; advise municipality; special attention to women and hi tech support jobs

• Outputs: A functional training center with one class; Running 4 hi tech support courses; and 1-2 hi tech course; Creating a database of at least 600 qualified Arab hi-tech support candidates from the region; bringing at least 1 company to announce branching to the Triangle, and 2 more to start a similar process

• Prospects for Success: A replication of our proven successful Nazareth’ model; A solid business value in an entry-level hi-tech center close to leading companies headquarters; leveraging Government support through current official programs

• Budget 2013: $320,000

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Mentorship program- from pilot to project• Rationale: Leverage Tsofen’ large volunteer group to support

hundreds of young Arab professionals in their entrance to the industry

• Activities: Create/mentor two groups of mentors and mentees; match them; conduct workshop to assist during work search and in first months of work

• Outputs: Scale capacity to support hundreds graduates in job placement; decreasing drop-out rates during initial work months; Increasing hi-tech community's, accountability and responsibility to job seekers;

• Success Prospects: Replicate “Olim Beyahd” successful program; Tsofen’s large and involved volunteers group; leverage the successful pilot program of 2012

• Budget: in 2012: $65,000

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Exposure to Industry- workshops in Universities

• Rationale: Exposing Arab students to available employment in hi-tech during their studies, assisting them to plan and manage their career, thus increase motivation and decrease dropout rates.

• Activities: Preparatory sessions; empowerment workshops; provide mapping of the industry; lectures by senior and new engineers; pprofessional Tours in Hi-Tech Companies

• Outputs: six monthly sessions in 3 universities• Success Prospects: growing demand in the Universities for

such projects; a successful pilot in 2012• Budget 2013: $50,000