Data published by the Samuel Neaman Institute.
National researchers have found that investment in human capital, in Technion undergraduate science and engineering students – has generated exceptionally high (and risk free) social rates of return.
Investment in human capital at Technion generates a 76‐197% social rate of return, at least, or in absolute terms, some $35‐$60 billion for 50 graduating classes.
The annual output of Technion graduates in high‐tech industries and computer services, communications and Research & Development is estimated at a minimum of $21 billion.
The median income of Technion graduates is NIS 20‐25,000 (gross income) per month, and is substantially higher than both the average wage in the economy and than the average wage of those with higher education.
The cost of the 2010 undergraduate class was approximately $1 billion (for four years of education). The social return to Israel’s economy is estimated at between $1.76 and $2.97 billion.
These calculations show that public investment in Technion science and engineering education is highly profitable, with higher rates of return that almost any other conceivable risk‐free investment.
An overall estimate of Technion graduates’ GDP contribution to the Israeli economy, shows an annual output of Technion graduates in high‐tech industries and computer services, communications and Research & Development at an estimated $21 b., or some 20 per cent of the total annual output of these industries.
Technion engineers contribute to generating some 78,000 jobs that support high‐tech industries, jobs that pay relatively high wages.
Technion graduates’ contributions also find expression in the taxes they pay, some NIS 16.6 b. or about $4.4 b., in direct and indirect taxes, or some 13 per cent of the state revenue from direct and indirect taxes.
Findings in this research project show the unique contribution of Technion, through its graduates, to creation of human capital over a century of its operations.
Technion graduates participate in every facet of Israel’s economy, technology, education and management, especially in its high‐tech growth‐leading sectors.
Other findings in the research, based on a Web‐based survey of some 4,000 Technion graduates, indicate major contributions of individual Technion graduates to Israel and the world.
- Some 67,000 persons have graduated from Technion since its first graduating class, and some 90,000 degrees have been awarded. Of Israel’s 125 top business leaders, according to Dun & Bradstreet, 41 (one‐third) are Technion graduates. Of these, 28 head publicly‐listed firms, and 13 lead private companies.
- Technion graduates lead Israel’s 11 top exporters which account for $19.5 b. in exports out of a total of some $45 b., and employ 80,000 workers.
- Entrepreneurship: of the 298 NASDAQ‐listed companies listed with “non‐American origins”, fully 121 (41 per cent) are Israeli. Of those, half (59) are led by Technion graduates and/or were founded by Technion graduates. These Technion‐originating startup companies had a market value of $28.4 b. (as of Nov. 2010).
Technion Inventions
Among the widely‐used inventions or breakthroughs originating with Technion Faculty and/or Technion graduates:
- Memory sticks (Dov Moran, M‐systems);
- Ziv‐Lempel data compression algorithm (used in pdf);
- Rasagiline (Azilect), for treating early‐stage Parkinson’s, developed by Moussa Youdim;
- Instant messaging (Yossi Vardi, father3 of ICQ inventor Arik Vardi, was a key founder of Mirabilus);
- Better Place electric cars (Shai Agassi);
- Ubiquitin, the protein that causes cells to die, showing potential for new cancer treatments, discovered by Technion Nobel Laureates Ciechanover and Hershko;
- Shechtmanite (quasi‐crystalline matter, once thought impossible, discovered by Dan Shechtman);
- ‘NaNose’ that sniffs cancer (Hossam Haick);
- Non‐invasive destruction of tumors by ultrasound (Insightec, led by Technion graduate Yoav Medan);
- Cardiac imaging through PC‐based ultrasound (Alex Silberklang, who headed GE Ultrasound, based in Israel, for a decade), and a great many more.
Industry and Startups
Based on a web survey of graduates:
- Out of 59,100 Technion graduates (who are currently of work age), one‐fourth (24 per cent) are either CEO’s or VP’s. In addition, another 41 per cent fill management positions.
- 10,882 Technion graduates, or 18.4 per cent of all graduates, work currently, or worked at one time, in startup companies.
- Some 13,500 Technion graduates, nearly one‐fourth of all graduates, at one time initiated a business. Some 15 per cent of Technion’s female graduates also launched businesses at one time.
- Of all Technion graduates, 35 per cent work in industry, and 12 per cent work in R&D; thus nearly half of all graduates are employed in jobs that either directly produce goods and services or help design and create them Of all Technion graduates employed in industry, 75 per cent are employed in high‐tech industries.
Source: Technion’s Contribution to the Israeli Economy through its Graduates, By Amnon Frenkel and Shlomo Maital. S. Neaman Institute Working Paper, January 2012.