1. Shared Society Through Technology

2. 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
2

3. Israel is considered an
economic
miracle

4. 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

5. The highest poverty rate in the OECD
Over 50% of Arab
families in poverty
Page 7

6. Israel has two economies
Arab economy Jewish economy
40% workforce participation 60% participating
21% of women work 57% working
5,419 NIS Average/capita income 8,086 NIS
1,000 employed in engineering positions 85,000 engineers
0 hi-tech industrial zones 15 zones

7. 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
9

8. Our model is aligned with OECD
recommendations for Israel
• 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
Page 10

9. Tsofen’s model of operation 2012:
Nazareth hi-
Job tech center
Community Creation
Getting Building
Government
to Act
Train &
Place
BUZZZZ
2008:
25 engineers Arab professional community and grads
in Nazareth
Government Companies Municipalities
Page 11

10. Working With the Arab community
• Malakom for biz community & SU scene
• Hackathon for hi tech community
• Technical workshops for students
• Meetups for entrepreneurs community
14

11. 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
15

12. The Future is here
Page 16

13. 2013: New Strategic Emphasis
• Government Advocacy & Cooperation
• Business Development & Job Creation
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
Page 17

14. 2013 Projects
• 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
Page 18

15. Government Advocacy & Bus Dev
• 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
Page 20

16. 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
Page 21

17. 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
Page 22

18. 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
Page 23

19. 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
Page 24