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While excellent at starting really smart new companies, Israel, like Canada, has much less success in turning these into locally owned multinationals with the potential to create thousands of domestic jobs.

TORONTO—Writing in the Global Innovation Index 2020 report, Yaron Daniely of Israel’s aMoon Venture Fund, worries that his country—highlighted in the best-selling book, Start-Up Nation—may be suffering from the same problem that I see in Canada.