Tel Aviv University Research Calls RAD Israel’s Largest High-Tech Growth Engine

According to a recent study conducted by researchers at Tel Aviv University, RAD, founded by brothers Yehuda and Zohar Zisapel, who are among the fathers of Israel’s hi-tech industry, has had a central role in Israel’s transformation as a “start-up nation” and a hi-tech superpower.

The research, which sought to identify the origins of Israeli technology companies, indicated that RAD is in first place on the list of “contributors” to Israel’s hi-tech success, starting the process by initiating the RAD Group. The RAD Group was the most fertile ground for creating Israeli entrepreneurs, having produced 56 “serial entrepreneurs,” who established more than one start-up each. RAD Group “graduates” were responsible for the establishment of a total of 111 significant hi-tech initiatives.

The research was conducted by Prof. Shmuel Ellis, Chair of the Management Department at Tel Aviv University’s Faculty of Management, together with Prof. Israel Drori of the School of Business Administration at the College of Management and Prof. Zur Shapira, Chair of the Management and Organizations Department at New York University.

The research demonstrates that companies that were founded in a competitive environment and received indirect institutional support developed a stronger entrepreneurial spirit than those founded in a non-competitive environment that enjoyed direct institutional support. Likewise, when the entrepreneurial spirit of the founder was more robust, the dynasty’s fertility rate was higher.

“The aim of the research was to understand how the industry’s evolution works – how organizational traits pass from generation to generation,” explains Prof. Drori. “The basic claim is that traits like entrepreneurship – which is Israel’s relatively biggest advantage – are passed down. They do not remain in the hands of a few but are passed down on the family tree. The founding father absorbs values and norms from the environment. New entrepreneurs leave the organization with the organization’s DNA, and they take it with them to the start-ups that they create.”