Human Capital—Intangibles

Abstract

The foundation of any knowledge economy consists of its tangible training and skills together with intangible assets bounds up in its cultural values. In Israel’s case, these intangibles are arguably more central than its formal achievements in creating the high-tech start-up sector at the heart of Israel’s knowledge economy. They include a strong distaste for organization, hierarchy, and rules; a propensity for risk-taking; a highly developed culture of teamwork; candidness in interpersonal relations; a focus on addressing practical problems over theory; and a preference for tackling defined tasks over organizational discipline. These national characteristics have arisen from the shared history Israelis have as heirs to their Jewish and Israeli past, and the personal experiences they undergo as children and in young adulthood.