Israel Innovation 2.0

This week has been filled with news about both more layoffs and funding. While the layoffs are more overwhelming than the investment deals, the most positive news thus far has not been about the investments made but about the investments that might be made in 2009. Globes has reported that the Chinese electronics company, Hisense, is actively looking into R&D possibilities in Israel in 2009. 

Hisense is currently a large domestic consumer electronics manufacturer in China and plans to expand into a global technology company. In an effort to make that happen, the company sent a delegation to Israel last week to look into “acquiring, investing in, and collaborating with, Israeli technology companies.” Companies the delegation met with included Siano Mobile Silicon Ltd., modu Ltd., Discretix Ltd., and Red Bend Software Ltd. 

According to the Globes article, Hisense expects Israeli technology to help the company achieve it’s short- and long-term goals for becoming a global technology force, which include finding technologies to integrate into its products as soon as possible as well as technologies that can improve Hisense’s products after more development.

Globes reported yesterday that Google Israel, which has been behind Google Trends and YouTube Annotations among other features, will be restructuring its presence in Israel and creating a Google – Israel R&D Center.

According to the article, the new center will combine Google’s R&D operations in Tel Aviv and Haifa but will still allow them to function as two separate offices, though the longterm fate of the Haifa is questionable. It will also add data analysis and search to its responsibilities.

The article drew my attention because it indirectly raises the questions:

• How long will the Google -Israel R&D Center continue to function in two separate locations? (It sort of addresses it – “At this stage we are keeping the existing situation.”)
• Will it be hiring or firing based on this? (Google Israel currently only has openings in Tel Aviv)
• Given Microsoft Israel’s and EMC’s recent outsourcing and recruiting programs in Israel, will Google follow with its own program and incentives?

Expanding on the last question, in a post a few weeks ago about Microsoft Israel’s efforts, some of the benefits I listed of implementing such programs included: additional exposure, new products and a large pool of potential future employees. Of course, there’s also the cost-efficiency advantage. It seems now would be the perfect time for Google Israel to implement its own program. 

What do you think?