The day I visited the Iscar campus, one of its theaters was filled with industrialists from the Czech Republic, who were getting a lecture  in Czech  from Iscar experts. The Czechs came all the way to the Israel-Lebanon border region to learn about the latest innovations in precision tool-making. Wertheimer is famous for staying close to his customers and the latest technologies. “If you sleep on the floor,” he likes to say, “you never have to worry about falling out of bed.”

That kind of hunger explains why, in the first quarter of 2008, the top four economies after America in attracting venture capital for start-ups were: Europe $1.53 billion, China $719 million, Israel $572 million and India $99 million, according to Dow Jones VentureSource. Israel, with 7 million people, attracted almost as much as China, with 1.3 billion.

Boaz Golany, who heads engineering at the Technion, Israel’s M.I.T., told me: “In the last eight months, we have had delegations from I.B.M., General Motors, Procter & Gamble and Wal-Mart visiting our campus. They are all looking to develop R & D centers in Israel.”

Ahmadinejad professes not to care about such things. He was  to put it in American baseball terms  born on third base and thinks he hit a triple. Because oil prices have gone up to nearly $140 a barrel, he feels relaxed predicting that Israel will disappear, while Iran maintains a welfare state  with more than 10 percent unemployment.

Iran has invented nothing of importance since the Islamic Revolution, which is a shame. Historically, Iranians have been a dynamic and inventive people  one only need look at the richness of Persian civilization to see that. But the Islamic regime there today does not trust its people and will not empower them as individuals.

Of course, oil wealth can buy all the software and nuclear technology you want, or can’t develop yourself. This is not an argument that we shouldn’t worry about Iran. Ahmadinejad should, though.

Iran’s economic and military clout today is largely dependent on extracting oil from the ground. Israel’s economic and military power today is entirely dependent on extracting intelligence from its people. Israel’s economic power is endlessly renewable. Iran’s is a dwindling resource based on fossil fuels made from dead dinosaurs.

So who will be here in 20 years? I’m with Buffett: I’ll bet on the people who bet on their people  not the people who bet on dead dinosaurs.