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Technology of Business: How Israel became a hi-tech hub

22 November 2011 Last updated at 00:12 GMT

Israel currently has almost 4,000 active technology start-ups - more than any other country outside the United States, according to Israel Venture Capital Research Centre.

The non-stop flow of venture capital amounted to $884m (£558m) in 2010 alone.

Katia Moskvitch went to Tel Aviv to find out how Israel became such a hotbed of entrepreneurship and hi-tech start-up companies.

Special report: The Technology of Business