[Tsagadai]

So why the comparison to Korea? Korea has very restrictive immigration policies which prevent almost anyone from gaining actual permanent residency (citizenship is almost impossible for "non-Koreans"). Israel has very liberal immigration and easy access to citizenship. Israel is democratic and has been mostly free since its founding whereas Korea has had a few dictatorships (and serious military crackdowns on civilian freedom).

The main reason Korea isn't a startup hub is capital. Korean banks are incredibly conservative, they won't even lend money for cars or mortgages to most people. Capital is centralized and mainly allocated to existing projects or proven corporate models. Venture capital is non existent. Israel is the opposite of that with lots of investment and decentralized capital. In short, Israel has risk seeking investors, Korea doesn't.

When no one takes even low to moderate risks with money there cannot be a startup boom.

[yangtheman]

Oh, I meant they are similar in terms of limited natural resources and they both have to rely on intellectual capital on their citizens and exports for growth.

Korea is mostly homogeneous society and not very open to immigrants, and thus their growth is limited. So is Japan, and their growth also hit the wall as well.

I also agree on money. So true.

[burgerbrain]

I've been under the impression that Israel only has liberal immigration for certain demographics. Is this not the case?

[bmunro]

I would say it is the case.

http://en.wikipedia.org/wiki/Law_of_Return - Allows almost any Jew or relative of a Jew to migrate to Israel and quickly gain citizenship.

http://en.wikipedia.org/wiki/Citizenship_and_Entry_into_Isra... - prevents residents of Iran, Afghanistan, Lebanon, Libya, Sudan, Syria, Iraq, Pakistan, Yemen and areas governed by the Palestinian Authority from automatically gaining residency and citizenship through family reunion and marriage.