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The Evolution of a New IndustryA Genealogical Approach$
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Israel Drori, Shmuel Ellis, and Zur Shapira

Print publication date: 2013

Print ISBN-13: 9780804772709

Published to Stanford Scholarship Online: June 2013

DOI: 10.11126/stanford/9780804772709.001.0001

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Economic Conditions at the Time of Founding and the Founding Parents of the Genealogies

Economic Conditions at the Time of Founding and the Founding Parents of the Genealogies

(p.35) 3 Economic Conditions at the Time of Founding and the Founding Parents of the Genealogies
The Evolution of a New Industry
Stanford University Press

This chapter describes the historical evolution of the founding companies in the communication sector of the Israeli high-tech industry. It reviews the founding process of the pioneering firms against the backdrop of both the formative and the recent socioeconomic and political history of Israel, distinguishing between two major periods—that is, from approximately 1948, the year of the country's independence, to 1977, the year of its political turnaround. This period is marked by centralized government intervention and substantial ownership of major economic enterprises by the country's labor federation. The latter period—the competitive economy—describes the institutional economy from 1977 through 2010, a time characterized by the country's transformation into a liberal, market-oriented economy and its integration into global markets. The chapter describes the basic traits of each genealogy in terms of its historical development, its organizational characteristics, and its imprinting potential. It shows how and why the new genealogies that evolved during the great communication revolution of the 1980s were more entrepreneurial and so have been more dominant in the sector's evolution.

Keywords:   Israel, high-tech industry, founding companies, founding firms, parent companies, communications industry, competitive economy, labor federation

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