Opinion
The end of the "garage era" - breakthroughs in AI need the academia
The share of employees with an advanced technological degree in AI companies is twice as high as their share in other companies.
For years, part of the myth of Israeli high-tech revolved around two young people—probably graduates of Unit 8200—who invent the next big startup in their parents’ garage. In the age of AI, this model generally no longer works. Two reports recently published by the RISE Israel Institute present several data points that indicate the exceptional importance of academia, including advanced technological degrees, in the AI era. Among the findings:
The share of employees with an advanced technological degree in AI companies is twice as high as their share in other companies.
The share of AI startups in which at least one of the founders holds such a degree is significantly higher than in other startups.
In nearly half of the open positions for AI researchers, an advanced technological degree is a mandatory requirement or a preferred qualification.
These phenomena stand out especially in light of the fact that in recent years we got used to seeing that in other high-tech fields, such as Cyber or Fintech, experience in technological units in the military was often considered sufficient, with no need even for a bachelor’s degree. Also, the high demand for advanced degrees in AI does not stem from the fact that some specific courses are currently taught only at the advanced levels and could simply be moved to bachelor studies. Many AI tasks require familiarity with research methods similar to those used in academic research, which are acquired only through advanced degree programs.
The importance of academia in general, and advanced technological degrees in particular, in the world of AI, brings back to center stage questions that have been asked before: Is Israeli academia succeeding in attracting top-tier lecturers from around the world? Is Israeli academia successfully preventing brain drain abroad? Is there sufficient knowledge transfer and collaboration between academia and industry?
The answer to these questions is “no,” or at least “not enough.” There are several reasons for this: limitations on the compensation that academia can offer compared to other countries; insufficient or inconvenient access to infrastructure and resources (an issue of great importance in AI); restrictions on employing foreign experts in Israel; and more. All this is happening at a time when many countries are investing substantial resources in these areas. For example, at the end of 2023 Switzerland launched an AI initiative supported by the country’s leading universities to establish computing infrastructure, provide funding, develop academic career tracks, and promote academia–industry collaboration. And in June of this year, the UK government established a £54 million fund to attract world-class researchers and their teams to Britain.
As noted, these issues have been discussed in the past as well, but have not been resolved satisfactorily. As long as the core of Israeli high-tech was based on Cyber, Fintech, and Enterprise Software, the lack of adequate solutions could be viewed as “unfortunate, but not critical.” All signs indicate that this approach must change in the AI era. Addressing these challenges is not merely “nice to have,” but rather a critical component of Israeli high-tech’s ability to maintain its competitive edge in the future.
Danny Biran is a senior policy fellow at RISE Israel.
