The economic damage resulting from cyber-attacks around the world costs billions of dollars per year. This universal security vulnerability provides a business opportunity for Israeli cyber-specialist companies that develop civilian and military protection programs.
Experts in Internet terrorism believe that cyber-attacks will lead to the collapse of critical and strategic national or military infrastructures such as electricity, energy, defense systems, transport, warning systems and emergency calls. According to some estimates, more than 500 million cyber-attacks occur every day around the world, many of them aimed at giant corporations. Of the Fortune 500 companies, 60% report dealing with information leaks, Internet fraud, and data theft.
The increasing frequency with which we read about attacks against countries, armies, banks and financial institutions expose the weakness of current security solutions. The economic harm from cyber-attacks is difficult to quantify, but the experts agree that it is in the billions of dollars per annum. A U.S. assessment puts the figure a hundred times higher than physical theft, and in Britain, cyber-attacks have cost the economy 48 billion dollars to date. As for Israel—the BBC report there are 1,000 cyber-attacks per minute aimed at Israeli targets.
Israel has managed to turn lemons into lemonade, creating successful industry to combat this shared security threat. There are about 200 cyber companies in Israel that develop civilian and military protection programs. Israel is recognized as a pioneer in the development and application of cyber protection. The cooperation between the military, the public sector, the private sector and academia, make us a global laboratory in this field, and the world's problem with the cyber threat has become a new economic and social opportunity for Israeli companies.
The Vision – Be'er Sheva as the National Cyber Center
Be'er Sheva is evolving as the national cyber capital, housing numerous cyber warfare companies, attracting international interest, creating workplaces for students and engineer, and driving this unique opportunity for regional growth.
A combination of factors merged to create a new "cyber valley" in Israel's Negev region: the Ben Gurion University has grown from 20,000 to 750,000 students in the past ten years and leads in the field of computer science; the IDF opened a technological computer communications campus; and Beer Sheva established a high-tech park and technology incubator with a cyber-focus. The cyber solutions slated to come of out the Beer Sheva will help countries cope in their fight against the new, virtual terrorism strongholds.
Beer Sheva is the center of cyber activity, concentrated in the new 35-hectare high-tech park where both international and Israeli high-tech companies as well as the IDF computer communications unit have set up shop. The advent of cyber to a city once considered a backwater stands to shift the epicenter of innovation in Israel, finally making room for other parts of the Israeli map in the high-tech economy.
At the Park's opening ceremony, Prime Minister Netanyahu said:
"I have a dream of seeing Be'er Sheva realize its potential as a global high-tech center. Ben Gurion's vision has yet to come to pass. Without an anchoring business presence in the city, the spark to ignite change was missing. In the future, all the prestigious units of the IDF will come here, and even this is a significant contribution to the region's economic future, the crowning achievement will be the national cyber headquarters that will make its new home here in the high-tech park. Be'er Sheva will become the cyber center of Israel and one of the world's leading high-tech cities."
In addition to bolstering Israel's status as a technology power, Beer Sheva and its surroundings also stand to benefit from this influx of industry to the capital of the Negev. It is estimated that within the next few years, 5,000 – 10,000 new jobs will be created in and around the high-tech park. In addition, we will see significant growth of small and medium-size businesses, new places of entertainment and culture, and a massive migration of tens of thousands to the south of the country.
High-tech is an important catalyst for regional growth, and it must be made accessible to diverse areas of the country and new populations. Cyber leadership is one of Israel's strategic assets with the potential to play a role beyond its immediate security applications. The cyber industry, with Beer Sheva at its center, stands to have a profound economic and social impact on the Southern region in particular and Israel's relationship to the periphery in general.
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