Palestine, the Real Startup Nation: A Vision for the Next Generation Role Model for Technological Innovation and Economic Transformation رسالة دكتوراة

Abstract

The socio-political and economic status of Palestine, including its occupation, economic constraints, and lack of infrastructure, makes it challenging for them to compete in global markets. The technological, diaspora, and resilient human resources Palestine possesses certainly give them the potential they need. This study looks into the effective ways and conditions needed for Palestine to create a cohesive and competitive global startup ecosystem while addressing deeper systemic issues, mobilizing its human capital, and formulating innovative approaches. This research investigates how new, unconventional solutions and collaborative efforts between different stakeholders can offer answers to these structural problems. In particular, the research specifically seeks to provide answers to such issues as: examine how entrepreneurship is discouraged and what are the structural challenges to establishing any enterprise in Palestine, assess the role of the diaspora in promoting innovation and investment, understand the possibilities of international collaborations to help a Palestinian startup system, and finally, lay out a plan for developing a nuisance free and globally competitive start-up ecosystem. The goals are identifying structural constraints, measuring international collaborations, and recommending actionable solutions (model) to aid in economic development and technological improvement which can convert Palestine into a disruptive force for economic growth. The researcher utilized both qualitative and quantitative methods. Qualitative data were sourced from interviews with 10 venture capital, policymakers, and startup enablers, academic and members of the diaspora, while quantitative data were collected through surveys from 97 entrepreneurs, experts, and academia, as well case studies that examine funding trends, market access, and infrastructural barriers. It was overseen that the Ecosystems in Estonia, Israel, Singapore, UAE, and Saudi Arabia have been a success, adapting patterns to the scenario of Palestine, and this advancement has been called a comparative analysis. This proves the validity of the obtained data and results as well as their usability in relation to the peculiarities of entrepreneurship in Palestine. The methods of collecting data shed light on the challenges and opportunities of the ecosystem in a major way. Startup surveys and interviews revealed that about 70% of Palestine’s startup sector experiences a funding shortage because there is no venture capital as well as there is a bank-oriented culture where lending practices are very conservative. The interviews also showed great promise for diaspora-led initiatives, while a high percentage of diaspora respondents stated they would be interested in Dr. Amjed Ghanem Dr. Ziad Abu Amr Dr. Yacoub Halbi V mentoring or investing in Palestinian startups. The case studies revolving around the enabling innovation centers, such as Gaza Sky Geeks and Rawabi Tech Hub, show their impact on the local entrepreneurship and innovation ecosystem, the hindrances generated by under-developed infrastructure and for global markets. Various analytical techniques, including chi-square tests and thematic analysis, aided in the illumination of these economic dynamics. The research shows that, including the undersupply of funds, regulatory restraints, and infrastructure gaps, there are systemic impediments to the startups in Palestine. Even though there is the possibility to focus on growth factors such as the ability of young and educated workforce, the engagement of the diaspora, and other business models have shown to make a significant contribution to the startup business in Palestine. The sharp focus on AI, blockchain, and other technologies is appropriate to resolve scalability and transparency issues. Looking at Estonia’s e-residency and Israel’s venture capital networks, it can be argued that certain policies can be introduced in Palestine that can significantly improve the ecosystem. The research proposes a multi-layer model for developing Palestine's startup ecosystem, and this system includes key components: Government, Venture Capital, International Partners and Doners, University-Industry Partnership, Diaspora, Community of Entrepreneurs, as well as Innovation and Startup Fund. The model will serve the startup ecosystem in many ways, for example, Regulatory Reforms: The business registration process, strengthening of intellectual property, and supporting virtual business operations will be simplified and inspired by some international experiences. Educational Enhancements: startup-focused education courses, as well as mentorship by local experts and diasporas will aid in strengthening the human capital. The model also enhances the Research and Development Component of the ecosystem. Collaborative Entrepreneurship: Facilitating the development of a work environment (e.g., entrepreneur’s society) for entrepreneurs to collaborate, give support to each other, and advocate important and common issues relevant to the startup sector. The Model itself has been based on the application of Digital-First Business Environment: The incorporation of Digital Practices in Business Operations will allow virtual businesses to operate without physical and political constraints. Translated into practice, this model is expected to place Palestine within the map of emerging start-up ecosystems in the world, and able to successfully embed itself into the global entrepreneurship arena