December 8, 2013, 5:00 pm-6:30 pm
Developing New Start-up Nations in Frontier Markets: New Drivers for Global Growth
Youthful demographics, rising productivity and changing technology in emerging and frontier markets create enormous investment opportunities but also necessitate systemic change in structuring development finance. Great creativity is required for delivering solutions and expanding the necessary systems. This is especially true in the crucial areas of energy, health, water and food. Technologies need to be customized, financed and deployed on massive scales to make a difference in the lives of the vulnerable poor. Gaps also exist in financing tools and programs, including loans, equity support, insurance and more. Bridging them will require scientific proficiency, fresh business models, smart incentive structures, the tailoring of technology to local conditions and geographic and cultural awareness. In this roundtable, we'll discuss social and financial innovations in Africa, the Middle East, and Asia aimed at expanding growth.
Steve Zecher, Milken Institute
Yosef Abramowitz, Co-Founder, Arava Power Company; CEO, Energiya Global Capital
Sivan Borovitz-Yaari, Founder and President, Innovation-Africa
Amir Gal-Or, Managing Partner, Infinity Equity
Peter Nichols, Social Finance-UK
Eytan Stibbe, Founding Director, Vital Capital
Tally Zinger, Lecturer, Tel Aviv University
December 9, 3:15 pm-4:30 p.m.
Health Sciences as a Breakthrough Industry
The financing gap for translational research is widening. High-risk, long-term investments are needed to turn medical innovations into lifesaving therapies. However, an industry-wide funding gap for early-stage drug development coupled with a retreat by venture investors from all but late-stage life sciences have created the need for new inventive, sustainable funding models. In order to accelerate medical solutions, novel approaches to early-state drug and device development are needed to better manage risk, lower capital cost, and improve research effectiveness, create diverse portfolios, leverage risk-tolerant capital and access new capital sources. In the last year, many of these approaches--from novel public-private partnerships to highly leveragable venture philanthropy investments to a new breed of institutional fund managers--have come into their own, with early data supporting an optimistic view of what's ahead. There is also a growing movement to apply nontraditional models as a disruptive force in biotech. Also, important financial research supports the ideas of extending medical financing beyond corporate R&D, venture and private equity to fixed income models for longer-term financing. How are these models improving the risk-return ratio for early-stage research, making it a more attractive opportunity? How does the involvement of philanthropic and/or government funding create leverage and attract greater private investment?
Glenn Yago, Milken Institute
Dr. Leonid Bakman, Founder and Executive Director, Israel Innovation Institute
Dr. Roger Stein, Managing Director, Research and Academic Relations, Moody's Corporation; Research Affiliate, Massachusetts Institute of Technology
Dr. Einat Zisman, CEO, Hadasit Medical Research Services & Development Ltd.
Dr. Ora Dar, Director of Life Sciences, Office of the Chief Scientist, Ministry of Economy
December 9, 5:00 pm-6:30 p.m.
Milken Institute's Fellows Panel--Israel's Economic Growth Challenge: Bridging Gaps in Labor and Capital Productivity
There is growing recognition that the growing productivity gap in Israel threatens future growth. Since 1970 and worsening last year, the gap between Israel's productivity and the productivity of the G7 countries has steadily widened. Israel's capital formation is at the low end of OECD countries. The Bank of Israel has reported that low productivity is related to relative low investment rates in the Israeli economy resulting in the average Israeli worker having relatively low productive capital to utilize compared to workers in OECD countries. Israel's current productivity stands at 76 percent of the average labor productivity among OECD countries. Without changes in dismal standards of labor productivity performance and increases in capital investment, continued increases in income inequality and lack of job creation for a growing share of the educated workforce will challenge national economic security.
A panel of key policy and research experts will respond and discuss key findings of Milken Institute Fellows' research over the past year to address these important challenges and these questions: Why are increases in educational attainment not translated into an increase in output per worker? Why is education not leading to faster economic growth? Why are the contribution of education to GDP and the standard of living declining? How can we ensure increase rates of return of investment in human capital--Israel's most critical growth resource? Are tax benefits encouraging capital investment working? How can the educational system act as a socioeconomic lever for growth?
Naftali Bennett, Minister of Economy
Glenn Yago, Senior Director/Senior Fellow, Milken Institute
Gilad Brand, Milken Institute Fellow (President's Office and Ministry of the Economy), Israel's Growth Paradox: Declining Productivity and Returns to Human Capital
Revital Bar, Milken Institute Fellow (National Economic Council), Capital Productivity Gaps in Israel: Evaluating the Law for the Encouragement of Capital Investments
Assaf Amit, Milken Institute Fellow (Trump Foundation Intern at the Ministry of Education), Bridging Social-Economic Gaps through the Education System
Dr. Eyal Argov, Head of Macroeconomic Unit, Research Department, Bank of Israel
Julia Eitan, Deputy Director, National Economic Council
Eli Hurvitz, Executive Director, The Trump Foundation
Tal Keinan, Chairman and CEO, KCPS Clarity