Comparative Analysis of Factors of the Israeli Model of Attracting Venture Capital Investments as Applied to Small World Countries by Geographical Clusters

Attracting venture capital investments into the technological sector of the economy is a complex task at the state level. Since the 1990s, numerous programs have been implemented in Israel to develop the R&D system, stimulate innovation, and attract investment in the high technology sector. A comparative analysis of the systemic factors of the Israeli model of attracting venture capital investments in relation to other small countries of the world has been carried out. A systematic approach has been developed to the factors influencing the attractiveness of the country's venture ecosystem for investors. Using the example of Israel, significant variables were identified in order to analyze the applicability of the model in other small countries. Three geographical clusters of countries are considered: in the Caucasus (Armenia, Georgia, Azerbaijan), in Western Asia (UAE, Qatar, Oman, and Israel as a benchmark), and in Southeast and East Asia (Singapore, Hong Kong, and Taiwan). A rating assessment of the attractiveness of venture ecosystems of countries for investment was carried out through ranking factors. Strengths and weaknesses of venture ecosystems of countries both within clusters and between countries in different clusters were identified. The relevance of the research topic is due to the importance of the task of attracting venture investments in the technology sector of the economy of small countries, to increase the contribution of high-tech industries to economic growth and create a basis for the well-being of countries in the new era.