Israel’s Economic Development: The Role of Institutionalized Technology1 Transfer

Reisman and Associates, Shaker Heights, OH. USA.
reismana@cs.com

Arnold Reisman, PhD, PE.

February 3, 2005 ABSTRACT2 Until 1948 the year Israel gained independence from Britain, its land was mostly barren, sparsely populated, and its agriculture performed by small communes of inexperienced farmers. Its manufacturing was cottage industry in format. Over the years, Israeli universities and institutes have researched various aspects of agriculture and agricultural engineering needs for arid and semi arid zones of the globe. Like in the US such developments were immediately transferred to the agricultural communes and to private farmers on a gratis basis. As a matter of government policy it has shared much of its agricultural knowledge with developing countries. Eight years after independence, the first University/Institute technology transfer (TT) unit (YEDA) was established by the Weizmann Institute of Science. This organization is still operational and has amassed a long track record of successful TT to the private sector. Since early 1980s all other universities, medical research institutions, and government laboratories have followed suit with their own TT organizations. Israel has over a dozen each, of high tech business incubators and technoparks. Israel’s per capita exports in 2002 were 16.58 greater then in 1970 despite the fact that its population has more than doubled during that period. Today, Israel is an R&D pioneer in software, telecommunications, biotechnology and the life sciences. t is an undeclared nuclear power, and the world’s 5th largest exporter of advanced weapons systems. Much of that was accomplished through institutionalized TT from abroad and from indigenous innovations at its government and university laboratories using the US model as reviewed in Reisman and Cytraus, (2004). The real-world facts assembled, and insights gained from results of fairly simple statistical analysis of hard data are pregnant with meaning for socio-economic science practitioners and researchers alike. Lastly, some analyses to support future policy decisions are suggested. Key words: Technology transfer; History of Technology Transfer, Israeli technology transfer; Israel; Intellectual property; Diffusion of technology; Development; Agricultural extension; Incubators; Technoparks, Policy,
World Bank Group3, for supplying many of the significant data.

Acknowledgments: The author is indebted to Ora Meir, Israel Central Bureau of Statistics and to staff at the

This paper is an extract from the forthcoming Encyclopedia of Technology Transfer: Legal and Illegal, coauthored with Aldona Cytraus.

Technology is broadly defined to include all intellectual property. Technology Transfer (TT) is defined to include all possible modalities between all possible types of players, for all possible motivations as is taxonomically delineated in Reisman (2004a).
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1. INTRODUCTION Prior to WWI the land now known as Israel was a small part of the Ottoman Empire4. Between the two world wars it was governed under the “British Mandate” dictated by the League of Nations and Israel gained its independence in 1948. At that time its land was mostly barren, sparsely populated, and its fledgling agriculture was performed by small settler communes of inexperienced farmers. Its manufacturing was at best a cottage industry. Just eight years after independence, YEDA5, Israel’s first University/Institute based technology transfer (TT) unitwas established by the Weitzmann Institute of Science in 1956. This organization is still operational and has amassed a long and rich track record of succesful TT to the private sector. As will be shown, over the years all Israeli universities and research institutes have followed suit with their own TT organizations. Israeli universities and institutes have researched various aspects of agriculture and agricultural engineering needs for arid and semi arid zones of the globe. Like in the US such developments were immediately transferred to the agricutural communes and to private farmers on a gratis basis6. As a matter of government policy it has shared much of its agricultural knowledge with other developing countries. Today, Israel has the highest percentage in the world of home computers per capita and is an R&D pioneer in software7, telecommunications8, biotech9 and the life sciences10. It is an

The World Bank Group includes the World Bank; IBRD (International Bank for Reconstruction and Development); IDA (International Development Agency); IFC (International Finance Corporation); MIGA (Multilateral Guarantee Agency); and ICSID (International Centre for Settlement of Investment Disputes). For a historical review of TT to the Ottoman Empire and subsequently to the republic of Turkey see a companion paper, Reisman, et. al., (2004a) 5 Brigadier Eliahu Ben Hur, was YEDAs founding CEO, and the author’s engineering school classmate.
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were entirely designed, developed and produced in Israel.
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In USA TT from Land Grant universities, federal laboratories and other institutions having federal research grants and contracts is mandated by a series of laws. The first of these laws was signed in 1862, by President Abraham Lincoln, Reisman and Cytraus (2004). In Israel on the other hand, the practice predated the State and continues as a matter of precedent. 7 Most of the Windows NT and XP operating systems were developed by Microsoft-Israel. And the Pentium MMX Chip technology was designed in Israel at Intel. Both the Pentium-4 microprocessor and the Centrino processor The cell phone was developed at the Israeli branch of Motorola.

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On a per capita basis, Israel has the largest number of biotechnology startups. Israel' Givun Imaging developed the first ingestible video camera. It is so small it fits inside a pill. Used s to view the small intestine from the inside, the camera helps doctors diagnose cancer and digestive disorders.
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undeclared nuclear power, and the world’s 5th largest exporter of weapons sytems11. Its entrepreneurial energy and highly-skilled labor force, combined with the availability of venture capital financing, government support and a developed commercial infrastructure12, resulted in the fact that more than a third of the Fortune 100 companies are already established in Israel --as a wholly owned subsidiary; as part of a joint venture; in partnership with, or in technology exchange with Israeli companies And, just after the United States and Canada, Israel heads the world' nations in s NASDAQ listings. Notwithstanding its security turbulernce, during the period 1997 –2003 Israel’s GDP grew by 13.3% in real terms (adjusted for inflation), International Monetary Fund, (2004). And in 2004, Israel was ranked third among 25 emerging markets in an economic survey by the Economist magazine. http://www.economist.com./markets Even with an exploding population due to mass in-migration of Jews first from war torn Europe, next from hostile environments in Muslim lands of North Africa and Iran, thereafter from India, Ethiopia, and more significantly from countries of the former Soviet Union and at all times for Zionist reasons. Per capita in 2002, Israel exported significantly more goods and services then did its neighbors; 13.1 times that of Syria, 10.9 times more than Lebanon, 7.1 times that of Jordan and yes, 26.9 that of Egypt. However with the exception of Egypt, the above neighboring countries are not oil producers. When Israel, with its highly diversivied exporting mix, is comapared with that of neighboring oil (basically, single commodity) exporting countries the corresponding figures are; Saudi Arabia 1.6; Oman 1.29; Bahrain 0.65; Kuwait 0.80; Libya 3.49; and Iran 11.4913.

To get a perspective Israel’s population grew from 3,921,700 in 1980 to 6,748,100 in 2003. Over the years the country absorbed the following number of immigrants.

Immigrants by Year of Immigration
1948-1951 1952-1959 688,000 272,000

With an arsenal ranging from the Uzi submachine gun to attack drones and airborne early warning systems, Israel has quietly transformed itself into one of the world' top defense exporters. High-Tech & s Investment Report July 2003, http://www.ishitech.co.il/0703ar3.htm An Israeli company was the first to develop and install a large-scale solar-powered and fully functional electricity generating plant, in southern California' Mojave desert. s 13 The above metrics are based on data supplied by the The World Bank Group, in 2004.
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1960-1969 1970-1979 1980-1989 1990-2002
Source: Ministry of Foreign Affairs

374,000 346,000 154,000 1,093,000

Sıgnıfıcantly, Israel’s per capita exports in 2002 are 1.68 times greater then the corresponding figure for 1990, 3.0 times that for 1980 and yes, 16.58 that for 197014, Meir (2004),
http://www1.cbs.gov.il/shnaton54/st16_01.pdf . Within half of one

century, Israel’s economy has come a

long way in its development. Institutionalized technology transfer as will be shown, played a major role in this development.

2. THE AGRICULTURAL SECTOR At the outset, Israel’s economy was molded in the ideology of Socialism. The vast bulk of its agriculture was run by two basic models of communes – the kibbutzim15 and the moshavim. In the kibbutzim there was no private ownership of anything and all decision-making was by committee. n the moshavim each family owned and manged its own plot of land16 but all cental services and major equipment was communal. All processing needs for raw agricultural products was also communal and organized on a regional basis. Agriculture prospered. Iit satisfied most if not all domestic needs while exporting an ever increasing volume of fruit, flowers and value-added processed foods. In 2003 Israel exported US $714.7 million of raw (not including processed foods or packaged goods) agricultural products, Meir, (2004). These included :
Agricultural exports Field crops and vegetables Vegetables, potatoes and melons Cotton and other field crops

It is significant to note that this development took place despite the fact that Israel’s population has more than doubled between 1970 and 2002, e.g., 1970 - 3,022,000; 2002- 6,570,000, Meir (2004), http://www1.cbs.gov.il/shnaton54/st02_01.pdf
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“im” at the end makes the word plural According to law, only one son can inherit the farm so as to keep the farm intact.

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Fruit Citrus fruit Avocado and other fruits Flowers Animals Other agricultural exports

http://www.cbs.gov.il/fr_trade/tc3.xls ...

During the same year Israel exported $983.7 worth of value-added (processed) foods distributed as follows:

Manufactured exports Food products 494.7 Meat and poultry 41.7 Fruit and vegetables 151.5 Dairy products and ice cream 12.2 Grain mill products 52.1 Bakeries 6.5 Manufacture of cakes, cookies & biscuits 17.7 Matzos (unleavened bread) 7.6 Chocolate, cocoa and sugar confectionery 11.2 Prepared food 11.5 Manufacture of food products n.e.c.& n.s. 177.0 http://www.cbs.gov.il/fr_trade/tc3.xls ...

The combined exports of value-added and raw agricultural exports add up to $1,698.4. This figure does not include the following:
Soft and alcoholic beverages, tobacco Wines and other alcoholic beverages Beer and malt Soft drinks Food products n.e.c. 14.8 11.8 0.6 2.0 6.1

http://www.cbs.gov.il/fr_trade/tc3.xls ...

Nor does it include textiles and textile products which may or may not be based on indigenously grown fibers.
Textiles, wearing apparel and leather Textiles Spinning, winding and interweaving of yarns Weaving of fabrics; terry towels Bedclothes and bedspreads Other textile products Carpets and rugs 993.3 805.6 20.7 257.1 65.8 111.9 20.3

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Knitted fabrics Knitted wearing apparel Wearing apparel (excl. knitted)

7.5 322.3 157.5

http://www.cbs.gov.il/fr_trade/tc3.xls ... The same source shows that during 2003 Israel’s Gross Exports amounted to $31,783.3 million. Thus, raw agricutural exports (US $714.7 million) contributed 2.24% to Gross Exports and with the valueadded products ($1,698.4 million) the contribution amounted to 5.34%. To be noted is the fact that between 1998 and 2002 Israel exported 58% less raw cotton (down to US$27,970,000). However for the same period its exports of pharmaceuticals shot up 72% (up to US$92,541,000) and other medicaments shot up 143% (up to US$834,859,000). UNCTAD/WTO (2004) 2.1 Agrıcultural processıng Israeli agricutural communes joined forces by consolidating purchasing of all needed inputs and processing as well as marketing of their produce in several regional centers. Of these GRANOT LTD. Is Israel' largest industrial agricultrural cooperative. Founded over 50 years ago, GRANOT serves as s a central purchasing and marketing agency for the Granot Group -- 41 Kibbutzim (agricultural settlements) located along Israel' coast and central region. Thus under one roof, ”GRANOT s maximizes purchasing power by lowering farmer’s input costs, financing necessary capital and enabling all members to profit from the use of advanced agricultural technology. The members engage in the following joint activities: packaging and marketing of agricultural produce, joint purchase of all inputs, and establishment of new factories and corporations. The end result is maximum productivity coupled with top-quality”. As an agricultural cooperative, all working decisions are made in joint assemblies in which 41 members participate. http://www.granot.co.il/eng/welcome.htm 2.2 The role of government and universities in agricultural “extension” From the outset, Israel has followed the American model , [Reisman and Cytraus, (2004)], of providing public funding to government and university laboratories for agricultural research the results of which are quickly and feely disseminated to the private sector - to the agricutural communes and to private farmers.

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Israel’s Agricultural Extension Service, (AES)17, an arm of its Ministry of Agriculture and Rural Development (MARD), played, a vital role in the early days of agricultural development in Israel. It provided training to the inexperienced farmers, mostly new immigrants, enabling them to attain advanced agriculture using the limited resources at their disposal. Over the years, agriculture was developed through a rapid transfer of practical information from research to the field and the farmer. Work teams were set up around the country, providing a skilled and competent nationwide training system. This training system became a central factor in agriculture’s professional advancement for competitive market conditions. It promotes production of quality agricultural output both for export and local markets and increases the ability to exploit the relative advantages of the country’s different regions. As a result, agricultural extension and research have become an integral part of Israel’s agricultural infrastructure. The AES serves public and private interests. Its primary function is to provide professional advisory services to Israeli farmers. It also provides advisory services to the various departments in the MARD and determines agro-technological norms, http://www.agri.gov.il/. As indicated above, Israeli universities and institutes have researched various aspects of agriculture and agricultural engineering needs for arid and semi arid zones of the globe. Like in the US as a matter of public policy such developments were immediately transferred on a gratis basis. Israel’s national priorities for agricultural research are set every year by the Chief Scientist’s National Steering Committee. Israel is among the world’s leaders in allocation of financial resources to agricultural R&D. Some $90 million are invested annually, representing 3% of the agricultural GNP. As a result of this research effort, Israeli agriculture has become a model for efficient use of water, land and human labor, accompanied by record yields of high-quality products, http://www.agri.gov.il/. Approximately 50-60% of agricultural research is carried out by ARO’s Volcani Center,18 - the research arm of MARD. The ARO consists of seven professional research and support institutes:

A form of agricultural extension transferring best practices worldwide as well as research results from its universities to the Israeli farming communes. It predates the establishment of the State of Israel by at least two decades. The Israeli counterpart of the US Department of Agriculture chief scientific research agency- the Agricultural Research Service.
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Horticulture; Field Crops; Livestock; Soil, Water and Environmental Sciences; Plant Protection; Storage and Post-Harvest Technology; and Agricultural Engineering. Research is also conducted at academic institutions, such as the Hebrew University of Jerusalem’s Faculty of Agricultural, Food and Environmental Quality Sciences, the Weizmann Institute of Science, the Technion’s Department of Agricultural Engineering, Ben-Gurion University in the Negev, and Tel Aviv University. Additional activities in applied research are carried out at regional R&D centers. These were established in order to meet the unique climate, soil conditions, and other needs of each particular region. The regional R&D centers, reflecting government policy for developing the nation’s agriculture in peripheral areas of national priority, are located mainly in the north and south of the country, in the Jordan Valley, and in the Negev and Arava deserts, http://www.agri.gov.il/.. Most of the research is funded by public sources, and its results are open to the agricultural community. The government and other public sources contribute approximately $50 million annually to the ARO and the Chief Scientist’s Fund, whose establishment resulted in a significant increase in agricultural R&D investment. Other international public sources contribute some $12 million annually, including binational research funds with the USA and the Netherlands, as well as the research funds of the EU, after Israel joined this framework. Farmers’ organizations on national and regional levels contribute about $8 million annually, collected through a levy on their production. The private business sector invests an estimated $20 million annually. The investment is directed to products in which investors can assure their ownership of the intellectual property rights. Most of this research is conducted by companies that produce pesticides, fertilizers, seeds, plastics, irrigation equipment, and related products. This agricultural input industry is also applying the results of the aforementioned public research. Privatesector investment has increased in recent years, and its share in national research efforts has grown, for the benefit of Israeli agriculture and expansion in export of inputs. Israel has a total land area of 21,000 km2, of which around 20% is arable. Over half of Israel has an arid to semi-arid climate. In Israel, where water availability is a limiting factor for crop production, micro-irrigation (mostly drip irrigation) supplies over 75% of the

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total irrigated area. The fertigation method, of simultaneous irrigation and fertilization, is applied on about 80% of the irrigated land. The main advantages of fertigation over irrigation combined with broadcast or banding fertilization can be summarized as follows: remarkable increase in the efficiency of the fertilizer application; precise application of the nutrients according to crop requirements; convenient use of compound and ready-mix nutrient solutions, including minor elements that are otherwise very difficult to apply accurately to the field; easier regulation and monitoring of nutrient supply. An essential prerequisite for use of solid fertilizers in fertigation is its solubility in irrigation water. Effective fertigation requires an understanding of the plant nutrient curve, soil and fertilizer chemistry, and water quality. There are many fertilizer programs for each crop.19 Fertigation allows for the adjustment of nutrient requirement during the various stages of the plant’s growth: rooting, vegetative, flowering, fruit set, and maturation. Fertigation programs are developed on the basis of laboratory analysis of soil, leaf, or other plant tissue. These are followed up by field trials conducted by agronomists from the AES and the research institutes and passed on to the private growers. http://www.agri.gov.il/ Israel is involved in the development, production and marketing of new varieties, which are resistant to disease and able to meet farmers’ requirements, including long shelf-life, durability under storage, high yield and adaptation to a variety of climatic conditions. Israel is considered to be one of the leading countries in seed research. Each year, Israel exports over $80 million worth of seeds, mainly hybrid vegetable seeds, to markets dependent on improved yields and on quality. http://www.agri.gov.il/

Most of Israel’s agricultural production is highly intensive, based on small farm units which need close advisory work and regular technical updates. Production is export-oriented and has to comply with the severe quality requirements of the western marketplace. 2.3 Developing New Varieties New seed varieties are developed mostly by Israel’s private sector seed companies and agricultural research institutes. Research is conducted at various sites, including seed Israel is among the world’s largest manufacturers of potassium nitrate, a highly soluble fertilizer that is suitable for a wide variety of plants and crops. 9
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companies’ research stations, MARD’s Agricultural Research Organization (ARO), the Weizmann Institute of Science, the Faculty of Agricultural, Food and Environmental Quality Sciences of the Hebrew University of Jerusalem, Ben-Gurion University of the Negev, and by Bar-Ilan University. Market demands also influence research and development. One example is interspecific hybrid cotton which combines the advantages of two cotton species, Gossypium hirsutum and Gossypium barbadense, and is characterized by longer and stronger fibers. This is typically a high yield-per-area crop, requiring less water. It has been grown with excellent results in the USA, Europe and other regions. These hybrid cotton varieties have improved lint quality, and need 40% less irrigation when grown in marginal fields. Another example is the introduction of a mini seedless watermelon that fits easily into the refrigerator, as well as mini-cucumbers suitable for snacking. Agricultural research has contributed to the development of high added-value products, such as cherry tomatoes, lycopene-rich tomatoes, greenhouse tomatoes, a new generation of Galia type melons, greenhouse peppers, and hybrid cotton. The Israeli seed industry is recognized for its development of hybrid seeds for fresh produce, particularly tomatoes. A tomato hybrid renowned for its long shelf-life has been developed. The fruits of the new varieties are attractive, solid, and enjoy a long shelf-life. A substantial number of tomato greenhouses in Europe utilize seeds developed and produced in Israel. Recently, after the tomato yellow leaf curl virus (TYLCV) started spreading in many regions in the world, the Israeli seed industry was called upon to carry out extensive research on the subject, and as a result a TYLCVresistant tomato seed for greenhouse and open field production has been released. Seed scientists have also developed special varieties of peppers, short-day onions, melons and wheat, allowing the farmer to grow high quality produce. New varieties of cucumbers produced in greenhouses have the advantage of obtaining high yields and high quality, even during the off-season. http://www.agri.gov.il/ 2.4 Production under protected conditions Production under protected conditions has become the principle way for Israeli growers to ensure a constant, year-round supply of high quality products, while minimizing chemical use. This method helps to overcome obstacles imposed by adverse climatic conditions, and a shortage of water and land. The total area covered with greenhouses, nethouses

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and walk-in tunnels increased 7.6 fold between the 1980s and 2002, , The average farm size is 4 hactares (ha) for vegetable production and 1.2 ha for flower production Greenhouses, which are capital intensive both in construction and maintenance, are largely used for high added-value crops such as flowers and vegetables. Due to the high investment, growers are constantly seeking methods to streamline their operations and make them more cost-effective. The greenhouse allows the farmer to control most production parameters – including climate, fertigation, and biological control of plant disease and insects – optimizing land use and yield distribution during the growing season. Israeli farmers successfully grow between 3.5 and 4.5 million roses per hectare in season. An average of 400 tons of tomatoes are grown per hectare, four times the amount harvested in open fields. In addition, plastic greenhouse structures have recently been introduced for housing livestock, poultry, and fish. In addition to traditional greenhouse crops such as flowers and vegetables, experiments have recently been conducted to investigate the feasibility of growing fruit – such as nectarines, peaches, loquats, grapes, and bananas – under protected conditions. http://www.agri.gov.il/ 2.5 The Institute for Technology and Storage of Agricultural Products There is a growing requirement in agricultural markets for high quality produce, which is free of pests, pathogens and pesticides. The main objective of the Institute for Technology and Storage of Agricultural Products in the Agricultural Research Organization (ARO) is to solve current and anticipated problems of post-harvest agriculture in Israel, in order to enable the marketing of such high quality produce. Many post-harvest developments are the result of requests by the local food industry and related bodies. Others are the result of anticipated industry needs. Some of the developments are related to the protection of both locally-produced and imported dry agricultural products, and the preservation of fodder for livestock. Post-harvest research concentrates on protection, preservation, treatment, processing, storage and transportation of fresh, dried and processed foods. This research is conducted under disciplines that include physiology, physics, chemistry and biochemistry, molecular biology, microbiology, and entomology. http://www.agri.gov.il/

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2.6 Regional Cooperation in Pest Management Israel carries out pest management projects with its neighbors to resolve and alleviate regional pest control problems. A regional pest management program brings together Egypt, Jordan, the Palestinian Authority and Israel, with USAID assistance. In recent years, a regional Sterile Insect Technique (SIT) project for the eradication of the Mediterranean fruit fly has been implemented in the southern part of the country. The project is coordinated by the UN Atomic Energy Commission, and it will be expanded soon under the EASTMED program. 2.7 Agricultural Engineering Agriculture today is largely based on research and development (R&D). Modern agriculture faces many challenges, such as market competition, declining water availability and quality, environmental concerns, and availability and cost of human labor. All these require ongoing innovation and close cooperation with the scientific community. The particular challenges facing agriculture in Israel, such as limited availability of arable land and water resources, as well as high labor costs, also act as stimulants for increased research and development. Israel is among the world’s leaders in allocation of financial resources to research and development. As indicated 3% of the agricultural GNP is invested annually in R&D. As a result of this research effort, Israeli agriculture has become a model for efficient use of water, land and human labor, accompanied by record yields of high-quality products. Israel’s agricultural engineering industry is well-known for its irrigation systems. This industry also produces specially-designed machinery for the specific conditions of Israeli agriculture, including sophisticated sensors, greenhouse equipment, cladding materials, packaging systems, and management software. Agricultural engineering research is mostly application oriented and maintains close relationships with the industry for the benefit of Israeli farmers. Special sensors have been developed to record plant growth-rate and determine growing needs. The use of these sensors results in significant saving in water and fertilizers, while improving production and quality. Special equipment and machinery for vineyards, which enable management of large vineyards with minimal labor, have been developed and commercialized. These include systems for pruning, windowing, trimming, sweeping, and spraying. Harvesting systems for crops such as flower bulbs, potatoes and sweet potatoes, watermelons, dates, jojoba, peanuts, and chili peppers are designed and manufactured according to the special needs of Israeli agriculture. Special systems and methods for post-harvest operations such as separation of clods and stones from potatoes, weighing and sorting flower bulbs and corms according to size, hot-water 12

washing systems for fresh produce, accurate vibrating sizers, flower bunching systems, and length sorting are widely used to improve product quality and reduce labor. A variety of sprayers for dedicated applications are manufactured in Israel, designed for low volume, precise pesticide application. Solar soil disinfestation is widely practiced, using plastic films with special properties. An innovative technology for spray application of polymers for soil mulch purposes was developed, providing a feasible and cost-effective alternative to plastic mulch. The polymers may be applied by spraying the desired quantity to form a membrane film through which seedlings can emerge and later grow on the mulch. The membrane formed is flexible and porous, keeps its integrity on the soil surface, increases soil temperature, and reduces evaporation. In addition, mulched soil prevents the erosion and destruction of young seedlings by sandstorms. The membrane undergoes photo- and bio-degradation, resulting in its complete elimination without environmental pollution and hazards. http://www.agri.gov.il/ Automatically Guided Vehicles (AGVs), which follow an electric wire carrying a signal, are used in greenhouses for transporting crops to the packing house and returning empty containers to the pickers. A multi-purpose transportation system, which travels along a monorail mounted on the greenhouse structure, is used where conditions permit. Both systems are labor saving. 2.8 Agricultural Extension Service The AES uses computer technologies to develop training for farmers. Extension personnel receive information and provide recommendations using digital cameras and other computer controlled equipment. The Service holds distance learning courses using special software, the Internet, and its website (www.shaham.moag.gov.il), which includes extensive professional information. The AES constitutes a hub of agricultural know-how gathered from different sources: agricultural research conducted in academic institutions in Israel and abroad; know-how created by R&D, both in the Service itself and in regional experiment stations; and collaboration with private agricultural input suppliers. The Service converts all this know-how into recommendations for the farmers, with the aim of improving their competence. It has recently experienced a revolution in computer technology, which facilitates knowhow transfer to the farmers and improves inter-and extra – organizational communications. The Service focuses on subjects which are beneficial to the general public. Examples 13

of these include: Water management: Promotion of watersaving technologies, recycling water and use of poor-quality water Integrated Pest Management (IPM): Promotion of IPM with the aim of creating environment-friendly agriculture. In Israel, about 100,000 ha of horticulture are under an IPM regime, reducing pesticide use by thirty to forty percent Quality agricultural production: Adaptation of agricultural production to comply with quality-management criteria, achieving high-standard produce that meets consumer demands, including food-safety requirements. Labor-saving technologies: Promotion of labor-saving technologies in all agricultural branches Environment-friendly issues: Promotion of ecologically-oriented agriculture, by recycling marginal water for irrigation and adapting the livestock branch to environmental requirements Diversifying varieties and species: Diversification of varieties and species for agricultural production, using innovative extension methods Professional support in peripheral areas: Support for farmers in peripheral areas where agriculture is a key economic factor Since the inception of Israel’s international agricultural cooperation program about fifty years ago, the Agricultural Extension Service has taken an active and key role in providing trained and skilled human resources and expertise for these activities in and for developing countries. http://www.agri.gov.il/ On a historical note:

Joint U.S.-Israel agricultural research is a major success story, dating to 1909, when Aaron Aaronsohn, the discoverer of the wild ancestor of domestic wheat, established an extensive cooperative program between the new Israeli pioneers and the U.S. Department of Agriculture (USDA). It thus pre-dates the State of Israel by over 40 years. In the 1950' and 1960' s s, informal research ties blossomed into hundreds of joint U.S.-Israel agricultural research projects, supported by blocked foreign currency accounts made available for that purpose under U.S. Public Law 480. This evolved into the current U.S.-Israel Binational Agricultural Research and Development Fund (BARD, Chapter 9), founded in 1977. Since then, agricultural and scientific developments in both countries have produced increasingly sophisticated and efficient agricultural systems, with considerable economic impacts.
http://www.jewishvirtuallibrary.org/jsource/biotech/seventeen.html

3. RURAL INDUSTRIALIZATION 14

In the late fifties it became apparent that the agricultural communes needed sources of income to supplement what could be gained from tilling their limited land constrained by scarcity of water. Moreover, it was recognized that the next generation of kibbutz sons and daughters needed additional intellectual challenges. This gave impetus to a program of rural industrialization. The legal prohibition against subdividing farm land owned by moshav families coupled by high fertility rates especially among immigrants from North Africa further emphasized this impetus. Both the kibbutzim and the moshavim20 sought (not necessarily secured) plants from non laborintensive industries, as these communities were ideologically against using hired labor. Hence the plants had to be fairly automated. They could not require huge investments as capital was limited, but had to provide a high value-added product. Their technology had to be ecologically friendly because the plants were to be located on land owned by the communes, Yaron, et al., (1983). Most of these plants, were bought on a turn-key basis from vendors in North America and Western Europe. In almost all instances the purchase contracts included all process and managerial knowhow. Hence, a major infusion of industrial (manufacturing) technology into the agricultural sector from abroad. Because the moshavim had a higher degree of private ownership, many of their families opted for smaller cottage industries/workshops. In the early 70s the author actually observed a home-built robot assembling plumbing faucets and valves in a (moshav) family-owned converted cowshed, and plastic garbage bags being extruded on a 24-hour basis with only one attendant, from polyurethane pellets in a kibbutz owned plant. These were success stories. There were also significant failures as in the case of a kibbutz plant involving chemical milling of metal parts. In that case, the socialist mindset of the kibbutz decision-making committee fixated on the plant without giving sufficient consideration to the product and even less to its marketability. Most of the failures were due to above reasons. By 1979 Israeli agricultural communes had 306 industrial plants in operation, Yaron, et al., (1983) and by the mid 1980s, 40 % of all plastics manufacturing plants in Israel were owned by kibbutzim, Don, (1988). As of 2004,”the kibbutz movement still generates 40 percent of Israel’s agricultural produce (about half from livestock and half from crops) and 10 percent of its industrial output. Annually they generate an income of $5
The industrialization process has been in effect, too, in the "moshav shitufi" settlements. These are settlements in which the farm and the industrial plant, if any, are managed and operated on a communal basis, the income is equally distributed, but the consumption is organized on an individual family basis. The case of
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industrialization in moshavim shitufim is similar to that of kibbutzim, Yaron, et al., (1983).

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billion on which about one third is made on exports.” Laing, 2004. However, for a multitude of external as well as internal reasons studied by Honing and Sheaffer (2003), the kibbutz movement started on a down spiral in the 80s from which it has yet to recover, Getz, (2001).

4. THE INDUSTRIAL SECTOR 4.1 Technology transfer companies of universities, medical institutions and government agencies: As indicated above in 1956 the Weitzmann Institute of Science launched YEDA, Israel’s first technology transfer unit. All other Israeli universities ,research institutes, and some hospitals followed suit over time with their own TT organizations. These companies manage patents and commercial applications that emanate from research done in universities, medical institutions and government agencies and they are listed and described in the Appendix.

5. INCUBATORS The concept of business incubation has been successfully applied throughout the world. It can offer better returns on investment for successful business creation, job and revenue growth with measurable direct and indirect economic impact. As the name implies business incubators assist newly created companies to get off to a successful start. Toward that end they typically provide appropriate business support needed to increase the chances of the new venture’s survival and growth. Typically, incubators house several businesses under one roof or in a campus setting, and offer resident companies reduced rents, shared services and, in many instances, formal or informal access financing. They play a nurturing role in helping young businesses survive and grow during the start-up period when they are most financially vulnerable so that the eventual hand-off of new technology from an inventor to an industry user is made in the shape of an operating business enterprise not just in the form of a license or patent. The purpose of the business “must be to create -- and eventually deliver to a larger technology user -- a "prototype business" instead of merely producing and "transferring" an unproven "prototype product." In order to be "transferred" in this manner, an enterprise has to have successfully utilized the technology to produce and profitably market, on a small scale at least, the product or service application that the technology has enabled. This kind of enterprise is typically a small firm 16

that is flexible, entrepreneurially driven, market-sensitive and operated by industrious innovators who are personally hungry for success.” (Willax (2004)).

Incubators are most appropriate for Pre-revenue-stage companies to early-stage companies that are selling products or services. Business incubators are a good path to capital from angel investors, state governments, economic-development coalitions and other investors21. These range from the stateassistance funds often based on matching private sector investments, which could be inexpensive, to straight equity investments from angel investors, which could be very expensive. Funds typically available are $25,000 and greater. Getting into an incubator can be easy or challenging. Simply being in an incubator offers value to investors. Incubator managers know this, and as a result, many carefully screen would-be tenants to see that they match certain criteria. The good news is that once in an incubator, the path to angels or other investors might be more direct since they tend to hover around easily identified centers of entrepreneurial activity, National Business Incubation Association (2004). In its post socialism evolution Israel has recognized that enabling entrepreneurs to start and grow businesses can create jobs and income, stimulate innovation and provide more and lower-cost choices for consumers. Moreover a dynamic private sector can also generate tax revenues that the government can invest in public goods. One of these public goods Israel invested in were business incubators. Functioning incubators span the length, as there isn’t much breadth, of the country. In Israel technological incubators give fledgling entrepreneurs - immigrants and non-immigrants an opportunity to develop their innovative technological ideas and set up new businesses in order to commercialize them. The incubator program is applied in all parts of the country, under the guidance and with the support of MARDs Office of the Chief Scientist. The program was first implemented in 1991, when immigration from the former Soviet Union had reached its peak. www.incubators.org.il. No fewer than 26 technological business incubators were operational circa 2004, http://www.science.co.il/Technology-Incubators.asp According to its website (http://www.icn.co.il/ ) the Initiative Center of the Negev (ICN) is the ideal launch pad for entrepreneurs and inventors looking to develop innovative products with substantial export potential.

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On a per capita basis, Israel has the largest number of biotech startups.

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ICN specializes in business enterprise development, providing an instructive and supportive framework to entrepreneurs at the start-up stage of business development. Working together with ICN' staff, committee members, business mentors and consultants, ICN management provides the s tools and the know-how to help entrepreneurs progress from start-ups to stand alone companies. The incubation process considerably enhances the prospects of raising the financial investment needed and finding strategic partners, aiding entrepreneurs to emerge from the incubator with a freestanding, financially viable business. Incubators help reduce the failure rate of early stage companies by providing essential training, support and assistance during its initial stages. Like most of the others the Incubator is mainly supported by MARD. ICN is Israel' oldest and s most experienced technological incubator. ICN' success rate is testimony to the commitment of its s management and committee members: between 50 - 60 percent of ICN graduates have obtained further investment. ICN is located in Beersheva, the capital of the Negev (desert) and Israel' fourth s largest city, some 100 km (65 miles) southeast of Tel Aviv. ICN' relationships with Ben Gurion University and Soroka Medical Center provide entrepreneurs s with access to some of Israel' greatest minds and advanced laboratory facilities and libraries. In s turn, ICN provides the University' faculty, staff and students with a wonderful environment for s commercializing their ideas. Moreover, an Incubator Partnership Agreement between ICN and University City Science Center in Philadelphia, Pennsylvania, the largest university related science and technology research park in the U.S., stimulates joint ventures, collaboration and technology exchanges between ICN companies and the University City affiliates, providing resources and opportunities that help ICN companies compete in global markets. In order to become an Incubator tenant, the R&D project must be based on an innovative, sophisticated, generic technological idea that aims to develop a product(s) with export marketing potential. The majority of the product must be manufactured in Israel. The Office of the Chief Scientist provides up to NIS 600,000 (approx. $150,000) per year, i.e., up to NIS 1,200,000 (approx. $300,000) for two years. This amounts to 85 percent of the budget. In order to receive the full grant, entrepreneurs must raise at least $50,000 over two years. However, it is advisable to raise about $100,000, in order to avoid cash flow problems. The State must be reimbursed for funds granted. This payback is accomplished through royalties on sales. 18

MEYTAV Technological Enterprises Innovation Center Ltd., the northernmost Incubator is located in Kiryat Shmona, just below the border with Lebanon. It was founded by the Municipality of Kiryat Shmona and the Regional Council of Upper Galilee. In July 2003, MEYTAV was one of a select group of incubators to be privatized. Some of Israel' leading life science investors, including major VC funds (Pitango, Giza), Hadassah s Hospital' commercialization arm and Teva Pharmaceuticals - a world leader in generic s pharmaceuticals have together acquired 24% of the incubator. Other shareholders include private investor groups and entities representing the municipality of Kiryat Shmona and other regional interests. MEYTAV encourages and supports projects based on technological innovation, http://www.incubators.org.il/h22000.htm.

6. TECHNOPARKS The First Science Park in Israel, Kiryat Weizmann, was established on the initiative of the Weizmann Institute just north of the Institute campus, in Nes Ziona. It is home to numerous companies implementing Weizmann research. The Institute was later involved in the construction of yet another park, Tamar – Rabin Science Park in Rehovot, adjacent to Kiryat Weizmann. Fifteen Hi-Tech Industry Parks were operational in Israel circa 2004, http://www.science.co.il/Technology-Parks.asp. 6.1 Privately established technoparks Steff Wertheimer a maverick entrepreneur22 and former member of the Knesset (Parliament) owns seven industrial parks across Israel. One of these is in the Galilee and includes a permanent exhibition of Israeli art in its sculpture gardens. http://www.gemsinisrael.com/e_article000047913.htm. The mayor of Eilat, Israel’s southernmost city, asked Wertheimer to set up an industrial park in Eilat, as part of a plan to diversify the city’s job base beyond tourism and hotels, in order to attract educated and wealthy residents. "Building an advanced industrial park will reverse Eilat' negative migration. s Many residents have left since the city' duty-free status was abolished." The industrial park will be s located near the Jordanian border”, Globes (2004).
Starting with Iscar Metals he created and grew a major industrial conglomerate at a time when all of Israel’s heavy industry was government and or trade-union owned.
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Wertheimer’s global vision is demonstrated by the three way partnership between a regional government body, a private university, and Wertheimer as investor and senior advisor, establishing a technopark in vicinity of Istanbul, Turkey, http://www.gosb.com.tr/tr/news.aspx?news_id=346 (in Turkish).

7. THE INDUSTRIAL HIGH TECH SECTOR 7.1 Defense sector Fifty years after having to scrounge the world’s scrap yards, and facing a number of embargos by France and the UK against it taking delivery of paid for weapons systems, starting in the mid 1980s, Israel has evolved to be a supplier of indigenously designed and produced high-tech systems to the militaries of developed nations including that of the United States of America. They did this by discarding “country specific policies that result in constraints on work practices and on the application of better production methods at the firm level,” and by “creat[ing] new ideas to increase their standard of living” spurred on by having to defend themselves Parente and Prescott (2000). Over time some of its major R&D efforts though technologically successful had to be cancelled because of political pressures from outside – the United States. Case in point is the Lavi fighter/bomber project designed and built by Israel Aircraft Industries (IAI) cancelled in 1987, and potential sale of the Arrow anti ballistic weapons system to India in 2004. However knowledge gained from the Lavi program was not lost. It is being incorporated in upgrading its purchased aircraft and into the Chinese designed (point defensive warfare aircraft) J-10 Jian, with many of the design elements emanating from the IAI and several Israeli subcontracting R&D firms.
http://www.supremeruler2010.com/srmil_equipment_jet.htm

IAI began in 1933 as a small machine shop, later catering to the maintenance and upgrading of the motley collection of aircraft acquired during the War of Independence. It continued to specialize in the overhaul and retrofitting of the whole range of aircraft in the air force inventory. Israel Aircraft Industries was established in 1953 as Bedek Aviation Company, five years after the establishment of the State of Israel. Until the cancellation of the Lavi project in 1987, IAI had been entrusted with the development of the advanced fighter aircraft. Israel Aircraft Industries'scope has expanded to include technologically sophisticated solutions for battle in the air, at sea or on land. 20

With 14,000 skilled workers, IAI is by far the country' biggest industrial s employer. A further 15,000 Israeli jobs are indirectly dependent on the company. And its $1.6 billion in military and commercial sales abroad make it the biggest exporter. http://www.globalsecurity.org/military/world/israel/iai.htm Moshe Ahrens, American born and educated aeronautical engineer rose from IAIs, R&D ranks to become its CEO. After serving in that capacity during a period of the company’s major expansion in scope, he went on to be Israel’s ambassador to the US (1982, 1983), Defense Minister (19831984, 1990-1992), and Foreign Minister (1988-1990). He served in Israel’s cabinet during its “Thacher revolution” of industrial privatization and monetary liberalization. [Ahrens] had also emphasized the development of weapons systems to give the IDF [Israel Defence Forces] the quality edge it needed to overcome the numerical superiority of its adversaries. Many of the IDF weapons were acquired in the United States, but their advantage was rapidly disappearing as the United States began to sell these same weapons to Arab countries. Israel now had to rely on its own defense industry, which in a number of areas had succeeded in developing technology not available anywhere else.Ahrens (1995, 141) Since 1999, “Israeli arms sales have skyrocketed, particularly to Turkey, India and China.“The United States, which had blocked sales of Phalcon to both India and China, gave Israel the goahead last month to sign the Airbourne Warning and Control System (AWACS) deal with New Delhi. The Phalcon is an Israeli-developed long-range radar warning and control system carried in a Russian Ilyushin-76 cargo plane.” The deal is worth around a billion US dollars.
http://www.mtholyoke.edu/org/cwp/projects/us_armscontrol/departments_lock_horns.htm and Clyde R. Mark, "Israel: U.S. Foreign Assistance," Congressional Research Service, (October 3, 2003);

However, as indicated and the following quote shows, Israel does not have a free hand to sell its indigenously designed and manufactured defense products to whomever it chooses. “The comments Wednesday by State Councilor Tang Jiaxuan, China' senior foreign policy official, were s the strongest indication to date of Chinese displeasure over American efforts to prevent China from regaining possession of “Harpy”' unmanned drone aircraft.” “The Israeli-manufactured drones … sold to China in the early 1990s and returned to Israel earlier this [2004] year for technological upgrading. The deal is reportedly worth tens of millions of dollars. The drones are designed to destroy radar stations and anti-aircraft batteries. Last week, an Israeli military official said the United States has demanded Israel confiscate the drones, fearing that they could upset the military 21

balance between China and Taiwan.” PETER ENAV (2004)“China Official Slams U.S. on Weapons Deal” The
Associated Press. 12/30/04

7.2 High-tech sector Uzia Galil an Israeli innovator/entrepreneur and widely considered “the founding father of Israel’s high tech industry” Blackburn (2004). With a B.Sc. from the Technion and an M.Sc. in Electrical Engineering from Purdue he is currently, “Chairman of the Board, President & CEO of Uzia Initiatives and Management, Ltd. (Israel)- a company which he founded to provide management support to entrepreneurs and growing technology companies by leveraging the experience and global network of its management team and worldwide partners. Until November 1999, Mr. Galil served as Chairman and Chief Executive Officer of Elron Electronic Industries Ltd., which he founded in 1962, and was its President and CEO since its inception.” http://www.isropress.net/Premii/uzia.engl.htm “When Galil founded Elron in 1962 with $160,000 in financing, there was virtually no high tech industry to speak of, instead Israel’s economy heavily relied on oranges and defense. Galil however forged ahead, taking research from academia and turning it into his own high tech empire, which now includes Elbit Systems, Given Imaging,23 Partner Communications24, Zoran25, Orbotech26, Net Manage, and ChipX27.” Blackburn (2004). What is most impressive is that each of these companies can be found listed on the NASDAQ exchange.

In 1965 an Israeli kibbutz established the Netafim company to manufacture and market its invention for drip irrigation systems in Israel,
An example of their recent products is the Given Diagnostic System a first-line tool in the detection of abnormalities of the small bowel. To date over 145,000 patients worldwide have experienced the advantages of painless and effective PillCam™ Capsule Endoscopy. 24 NSC, one of its subsidiaries offers solutions enabling a wide range of voice activated applications. Its Automatic Speech Recognition (ASR) boards, enable application developers and system integrators to provide robust voice-driven services to telecom operators and service providers at a low cost. Zoran is a leading provider of digital solutions for applications in the growing digital entertainment and digital imaging markets. Orbotech develops and produces the world' most advanced hi-tech equipment for inspecting and imaging circuit s boards and display panels - the backbones of today' cutting-edge electronic products. Of Orbotech' approximately s s 1,400 employees, more than a quarter are scientists and engineers, who integrate their multi-disciplinary knowledge, talents and skills in numerous disciplines including software, algorithms, physics, optics, electronics and precision mechanics to develop and provide hi-tech solutions and technologies designed to meet customers' long-term needs. 27 ChipX is a leading manufacturer of late-stage programmable Structured ASICs (Application Specific Integrated Circuits).
26 25 23

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…where dry desert conditions and a limited water supply created the need for an environmentally-friendly watering system to grow crops. Later the process spread to the U.S. where it proved crucial in the dry, desert southwest or in landscape areas where traditional sprinklers have not proven effective. Today Netafim USA dripperline is used for on-surface or subsurface drip irrigation projects across America by homeowners, landscapers, growers, architects, and contractors. http://www.netafimusa.com/ Moreover, drip irrigation systems are used worldwide including all of Israel’s neighbor countries. With over 500 IAI designed and built executive jets in operation worldwide, on January 26, 2005, IAI rolled out for the world to see the G150 model of the Gulfstream to be marketed by the Gulfstream (Dallas, Texas) subsidiary of the General Dynamics Corporation. Gulfstream Aerospace on Jan. 18 rolled out the first copy of its G150 business jet from the Israel Aircraft Industries (IAI) manufacturing facility in Tel Aviv, Israel. Attending the ceremony were certifying authorities, supplier representatives and members of the G150' development team. First s announced in September 2002, the G150 remains on schedule for customer deliveries in the third quarter of 2006. As successive copies of the G150 are built and certified by both the FAA and the Israel Civil Aviation Authority, examples will be flown to Gulfstream' Dallas facility for the final phase of its s manufacturing. "Our Gulfstream team in Israel has done an excellent job managing the design and build of the first G150," said Bryan Moss, president of Gulfstream. "They' sacrificed time away from their families to ensure ve this project is on budget and on schedule." Moshe Keret, president and chief executive officer of Israel Aircraft Industries, added, "Once again, we have proven [IAI' technological capabilities, both in engineering and in s] manufacturing in this exclusive branch of our industry." The G150 is an entirely new cabin design for Gulfstream, with a cabin height three inches shorter than the company' large-cabin G450 and G550 series aircraft. The s G150 can accommodate six to eight passengers in a choice of several cabin configurations and is powered by two Honeywell 731-40AR engines. The G150' planned top speed is Mach .85, with a ceiling of FL450. At its longs range cruise speed of Mach .75, the G150 should fly four passengers nonstop up to 2700 nautical miles, the equivalent of Los Angeles to New York, London to Moscow, or Rio de Janeiro to Santiago. Gulfstream has developed a full-size replica of the G150 cabin and cockpit to take on the road to cities throughout the United States.

Also:

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Check Point' Gil Shwed Named a Top Technology Innovator by s CMP' VARBusiness Magazine s Internal and Web Security Solutions Lauded as One of This Year' Hottest s Technologies REDWOOD CITY, Calif., Dec. 22, 2004 - Check Point® Software Technologies (NASDAQ: CHKP), the worldwide leader in securing the Internet, today announced that its chairman and CEO, Gil Shwed, has been recognized by the editors of CMP Media' VARBusiness as one of North s America' "Top 50 Technology Innovators," a list of leaders in the s information-technology field who exemplify technological creativity coupled with keen business acumen. Shwed was honored in the special Dec. 13, 2004 "State of Technology" issue of the biweekly magazine that provides strategic insight to technology integratorsWe started Check Point in 1993 with the vision of creating the industry' most secure, powerful and easy-to-use network s security solutions, and I am very honored to be named one of VARBusiness' Top 50 Technology Innovators," said Gil Shwed, chairman and CEO for Check Point Software Technologies. "As a company that is solely focused on IT security, we are constantly developing new technologies to combat the latest security threats. Customers all over the world have come to rely on Check Point' leading security solutions over the last decade, and we now secure 100 s percent of Fortune 100 companies."
http://www.checkpoint.com/press/2004/var_gil_shwed122204.html

The cofounder, CEO and chairman of Check Point Software Technologies is one of network security' most successful, influential and enigmatic leaders, a s casually dressed billionaire who ranks among Israel' richest men. He runs a s publicly traded company that managed a decade of exceptional profit margins despite producing only two core products: FireWall-1 and VPN-1. That software has been installed at more than 300,000 sites globally, including almost every Fortune 500 company--a feat done with a mere 1,200 employees worldwide. Shwed is very bright, the son of a systems analyst father and a schoolteacher mother. He attended high school and college simultaneously in Jerusalem, but joined the Israeli army before earning a degree.
http://infosecuritymag.techtarget.com/2003/may/profile.shtml

And: Intel, the world’s largest maker of computer chips, unveiled its latest technology last Wednesday, an upgraded version of its Centrino chipsetthat like its predecessor, was conceived in Intel’s development center in Haifa. The product which was code-named Sonoma prior to the launch, features new graphics and audio capabilities, faster processing and greater security features. Intel forecasts that the chipset would be available on more than 150 different

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computer models by year’s end. Computer maker Dell has already begun advertising new laptops equipped with the new technology. Intel has sold more than $ 5 billion worth of its Centrino chipsets since they were introduced in March 2003. The technology designed, for laptop computers, came with enhanced wireless Internet connectivity that helped push the WiFi standard to the top of the industry agenda, as well as longer battery life. Anonymous (2005) Clearly much more can be said about Israel’s high tech sector. 8. INTERNATIONAL TT ACTIVITIES: At all times Israeli academics and other TT professionals work with their international counterparts on matters of TT. For instance on June 13-14, 2004, a workshop titled “From Research to Technology Transfer: Models and Best Practices” was held at the Tel Aviv University campus. The workshop was organized jointly by Tel Aviv University, its technology transfer company, Ramot, and the Embassies of France and Germany. Experts from France, Germany and Israel reviewed various measures for innovation policy, and presented successful case-studies of current practices of technology transfer in their respective countries. The workshop offered a platform for discussing the efficiency of various measures and procedures initiated by governments, academia and industry in order to enhance technology transfer in various fields (e.g. Biotechnology, Optics, Microelectronics, Nanotechnology, among others. The speakers included representatives from governmental institutions, academia and industry from each of the three countries, http://www2.tau.ac.il/EU/Technology%20Transfert%20Workshop.pdf Since the late 1950s, Israel has been sharing its agricultural expertise with scores of countries. A little more than a decade ago, in the midst of one of the periodic cycles of drought and famine that bring Africa to the headlines, researchers of the Institute for Agriculture and Applied Biology, a unit of Ben-Gurion University of the Negev, asked themselves how to promote the approach they had used in efforts to green the desert in Israel. This approach centers on the wide-scale introduction, domestication and evaluation of plant species from around the world, in order to determine which, if any, could play a role given Israel' agroecological situation. The concrete result of the brain-storming s session was the initiation of the International Program for Arid Land Crops, more commonly known as IPALAC. The program’s goal is to share this approach with nations who might benefit from it. IPALAC was officially 25

recognized by UNESCO, which began funding its activities in 1996. During the early stages, activities were divided essentially into two: the organization of workshops in Israel, where the impact of the introduction and domestication work could be viewed firsthand, and regional workshops in Africa, where specific ideas for new crop-based development might be undertaken. http://www.agri.gov.il/ Alongside those in the USA, several Israeli institutions are prominent members of the International Arid Lands Consortium (IALC). The IALC is an independent nonprofit organization dedicated to exploring the problems and solutions unique to arid and semiarid regions. IALC promotes cooperative research and practical application of new knowledge to develop sustainable ecological practices. The IALC member institutions28 share a mission to enable people of arid lands to improve the quality of life for future generations, http://ag.arizona.edu/OALS/IALC/Home.html. In the past ten years, with major funding from the Forest Service of USDA, (Hoekstra (2004)), “IALC addressed some of the most important issues related to development and conservation of natural resources under the different climatic conditions of the southwestern United States, the Middle East, and Chile. Scientists from these countries have collaborated in research and development and demonstration projects and exchanged views and scientific visits with the ultimate objective of making needed information available for better management of resources. To further enhance dissemination of information and data generated for research and demonstration activities to all stakeholders, the IALC supported outreach activities through publications, conferences, and training courses,” http://ag.arizona.edu/OALS/IALC/review.html. Thus technology transfer is the very essence of IALC, and the Israeli contributions to this mission are well documented in Hoekstra and Shachak (1999).

8.1 The Israel Export & International Cooperation Institute (IEICI) The IEICI plays a key role in promoting cooperation between foreign and Israeli agrobusiness executives and companies. The Institute organizes participation of Israeli companies in exhibitions in

The University of Arizona, Desert Research Institute - Nevada, Higher Council for Science & Technology Jordan, The University of Illinois, Jewish National Fund, Ministry of Agriculture and Land Reclamation - Egypt New Mexico State University, South Dakota State University, Texas A&M University-Kingsville

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other countries, arranges business delegations to foreign markets, and distributes a wide range of information and publications on business-scene, investment and trade opportunities. Israeli long-term expert assignments at the project site and short-term consultancies, have been established in different countries, including China, Costa Rica, Ecuador, Egypt, El Salvador, Eritrea, Ethiopia, Hungary, India, Jordan, Kazakhstan, Kenya, Kyrgyzstan, Malawi, the Philippines, Poland, Romania, Senegal, Swaziland, Thailand, Uzbekistan, and others. The demonstration farm that has been established in China utilizes Israeli agritechnologies, combined with know-how and inputs to enhance production quality and market-driven development. The farm also serves as a center where host-country nationals can be trained and experience practical and professional aspects of the farm operations. In Africa, demonstration-cum-training farms have been established in arid areas in Kenya, Eritrea, Senegal and Zimbabwe to demonstrate the advantages of appropriate technologies, focusing on irrigation, crop diversification, improved production practices and agribusiness development at field level. In Latin America, projects include livestock and dairy development, as well as special projects to assist in the rehabilitation of rural areas devastated by natural disasters such as hurricanes and earthquakes. The main effort is centered on the transfer of advanced technology for water conservation and efficiency, introduction of new crops and varieties, and enhancement of public and private development initiatives. Israel has also initiated projects to combat desertification and develop arid-zone agriculture in West Africa, India’s Rajasthan desert area, China’s Gansu and Xianjiang provinces, northern Chile and neighboring Middle East countries. Israel is involved in agro-ecological projects at reducing the use of chemicals through Integrated Pest Management (IPM) systems, and controlling depletion of the ozone layer by developing methyl-bromide alternatives. http://www.agri.gov.il/ Courses and seminars have been held on this subject in several countries in Africa, Latin America, Russia, CIS and Asia. Israel’s international cooperation in agriculture is conducted in conjunction and co-financing with other donor countries, and CINADCO is seeking to expand networking with other international organizations to overcome world development problems. http://www.agri.gov.il/ The Research Division in CINADCO is engaged in coordination of research cooperation programs with developing countries. The activities are carried out with the participation of experts and scientists from the host countries. Desert Agriculture in Israel More than sixty per cent of Israel is subject to semi-arid and arid conditions and may be classified as desert. Nevertheless, since the establishment of the State in 1948, these 27

areas have played an important role in the country' agricultural and economic growth s due to the developing of innovative farming methods and techniques suitable for arid zone agriculture. At present, more than forty per cent of the country' greenhouse- and s open field-grown vegetables and field crops and ninety per cent of the exported melons come from the Arava and Negev desert. In the arid south, fruits, including dates, and citrus are also among the leading crops, cover 12,600 hectares (2001 figures) . In addition, recent advances have been made with greenhouse and open-field flowers, grapes for wine, olives for oil, beef cattle, ostriches for meat, and aquaculture. As elsewhere in Israel, close cooperation exists between the farming and research communities in the south. The fruits of this cooperation may be seen in the resulting yields. Some examples: New citrus varieties produce between 50-100% higher yields than traditional ones; olive trees drip irrigated with brackish water achieve per-hectare oil yields which are six times higher than in the traditional rain fed groves in other parts of the country; fish farmers in the Arava and Negev expect to produce 2,000 tons annually in the coming years; and beef cattle are fed fodder and ostriches consume alfalfa grown with recycled brackish water obtained from fish cultivation, http://www.agri.gov.il/ Ben A. Wilcox, in a June 30, 1998 Reported to his employer the US Office of Naval Research on: “Materials Research in Israel (Haifa, Rehovot, Tel Aviv)” This newsletter summarizes research in structural and functional materials at five Israeli institutions as determined by site visits over the period March 15-19, 1998. I had discussions with scientists from universities, a defense industry and the Ministry of Defence (MOD). The overall quality of both basic and applied research was very high, the laboratories were well equipped and the researchers were talented and energetic. They have numerous collaborators in the U.S. and Europe. I saw a number of very interesting research efforts: quasicrystalline alloy coatings with promising tribological properties at the Technion, cathodic electrosynthesis of nanostructure ceramics at the Israel Institute of Metals, and polymer-matrix composites reinforced with carbon nanotubes at the Weizmann Institute. RAFAEL, a defense industry, produces a variety of products from advanced materials: composites (PMC) for aerostructures, radomes, ceramic armor, thermal batteries. The MOD plays a significant role in supporting materials research at universities, institutes and industrial laboratories. He concludes by saying: I was very impressed with the quality of materials research at the laboratories that I visited. It ranges all the way from product oriented 28

research in industry to excellent basic and applied research in universities and institutes. I was especially impressed by the attention being given to finding applications for "new" materials, e.g. quasicrystals as wear resistant coatings, carbon nanotube reinforced polymers for high strength composites and hollow nanoparticles of tungsten disulfide as a solid lubricant The scientists have many collaborations in the U.S. and Europe, and I think that this will continue and even increase. MOD materials personnel interact with USAF materials researchers, but not much with those from the U.S. Navy. I would urge Navy materials scientists who visit Israel to contact the MOD and exchange information about pertinent research activities. Wilcox, (1998) 9. CROSS-NATIONAL COMPARISONS The prestigious World Economic Forum (Geneva) and the Institute for Management Development (Lausanne) have jointly developed, and continue to periodically update a competitiveness ranking for selected countries, the “World Competitiveness Index” (WCI). Israel ranked 16th in 2001, ahead of Belgium (17), Taiwan (18) UK(19) and Norway (20), and, for 2002-2003, Israel was listed as 7th on its “Technology Index Rank” and 18th on its “Quality of National Business Environment” rating. In its 2003-2004 report Israel was ranked 20th on the “Growth Competitiveness Index” ahead of Spain (23), France (26), Belgium (27), Greece (35), and Italy (41), www.weforum.org.gcp. Using 32 (objective) published socio-economic, demographic metrics, and parametric (statistical) methods Ulengin et al, (2002), duplicated the more subjectively derived WCI. She then grouped countries according to rankings received. Israel fell in the second group along with Denmark, Spain, Sweden, Austria, Germany, Belgium, and France. When compared to Israel’s bordering countries the following World Bank Group, (2004) statistics speak for themselves: GDP per capita for 2002 (in 1995 constant dollars) Israel 16,676 Turkey 2,760 Jordan 1,660 Egypt 1,250 Lebanon 2,868 Syria 832 Exports of goods and services for 2002 (in current US $) Turkey 54,607,998,976 Israel 38,572,965,888 29

Jordan 4,282,284,288 Egypt 14,514,258,944 Lebanon 2,399,460,352 Syria 7,635,838,464 West Bank and Gaza 417, 695,232 Exports of goods and services per capita for 2002 (in current US $)29 Israel 5,874.6 Jordan 828.1 Lebanon 540.2 Syria 449.5 Egypt 218.0 West Bank and Gaza 129.3 Turkey 78.4 Comparing the above exports of goods and services per capita with those of developed countries we find for: Japan 3500; United States 3520; Korea 4003; Spain 4646; Italy 5531; France 6,512; UK 6823; Germany 8,536 Thus on a per capita basis, Israel’s export of goods and services have surpassed that of Japan, the US, Korea, Spain, and Italy and are not significantly below that of France. In fact, when the 158 countries for which the World Bank has a complete set of data are rank ordered on the basis of per-capita exports of goods and services Israel ranked 22nd is only one removed from the 20th place held by France. For rank ordering of all 158 countries see the Appendix30. The recent growth of its industrial exports notwithstanding, Israel is still in the major leagues when it comes to exports of raw agricultural products. As shown in the Appendix it ranks 25th among the above 158 nations – not far behind that of USA – 21st , and that of France 22nd . More specifically, per capita dollar-wise, Israel exports 0.81 that of the US and 0.84 that of France. As the Appendix shows the distribution of this metric across the 84 countries with full data, is very highly skewed. The mean of $63.7 per person falls between the 17th which is Germany and 18th which is Slovenia. Israel' $100 billion economy is larger than all of its immediate neighbors combined. Much of the fuel s for its economic development comes from the R&D performed at Israel’s universities and research

Based on data supplied by The World Bank Group, in 2004. These findings are pregnant with meaning. 20 countries fall below 100 $ worth of exports per capita and 73 or 46% fall below $500. Among the latter are; Philippines, Peru, Brazil, Pakistan and India as well as oil exporting Nigeria.
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laboratories and effectively transferred to the private sector. The http://www.science.co.il/ website is a good single source for current information on all technology and TT related resources in Israel. With three years of Intifada 2 notwithstanding, Israel’s economic competitiveness growth in 2004 is rated by the World Economic Forum (WEF)31 at 5.09 or 19th among 104 nations so rated. For comparative purposes, France is 27th with a score of 4.92, Korea 29th with a score of 4.90 and Turkey scoring 3.82 is ranked 66th .
http://www.weforum.org/site/homepublic.nsf/Content/Global+Competitiveness+Programme%5CGlobal+Comp..Ac

cording to UN data (Human Development Report 2003), Israel is among the nations credited with reaching “high human development” according to its Human Development Index (HDI) which ranks countries according to life expectancy, levels of education, and standards of living. Using figures from 2002, Israel placed 22nd with an HDI value of 0.90832. Its Gross Domestic Product (GDP) in 2002 was $19,530 per person as compared to $26,150 for the UK. UNIDO, considers Israel among the 25 countries with developed market economies33, http://www.unido.org/data/UNIDO/Stats/StaCountry, and, its “Democratic institutions rating” (on a scale ranging from (+10) to (–10), is right in there with other Western democracies a score of (+10). Significantly, with the exception of Lebanon (+5) none of its Arab neighboring countries appear within the positive half of the scale - Saudi Arabia being the only country in the world receiving (-10), Nationmaster34 (2004). http://www.nationmaster.com/ Based on a study commissioned by the North Carolina Biotechnology Center, Asher (1995), makes the case that the time has come for American industry and venture capital firms to shop in Israel for innovative biotechnology products emanating from that country’s research laboratories. In other words it is time for technology transfer to go north and west from what was not so long ago a developing country.

The WEF' GCI involves the evaluation of three main sub indexes (each with multiple dimensions/attributes): the s overall quality of a country' economy at the macro level (e.g., budget surpluses good, deficits bad); the state of its s public institutions, which includes such measures as the independence of the judiciary and the level of public sector corruption; and the level of its technological innovation.

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A vast compilation of data from such sources as the CIA World Factbook, United Nations, World Health Organization, World Bank, World Resources Institute, UNESCO, UNICEF and OECD.

The highest-ranked Arab country was Bahrain at 40th place, while the Palestinian Authority (PA) was ranked 102. The survey included 175 UN members, the PA and Hong Kong. It is an interesting coincidence that Israel ranked 22nd among the nations both on HDI and the per-capita exports of goods and services. 33 In juxtaposition, none of its neighbors (in fact all Arab states) are listed among the transition economies. They are all within the developing regions category.
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According to the World Bank: Knowledge, and its application, is now acknowledged to be one of the key sources of growth in the global economy. The increasing importance of knowledge has created both challenges and opportunities for developing countries. In terms of challenges, it is clear that to be competitive internationally, countries must be able to participate effectively in the knowledge-driven supply chains and markets that now dominate the global economy. However, if properly adapted to circumstances and effectively addressed, the knowledge and information revolution presents significant opportunities for reducing poverty and promoting sustainable development. http://www.worldbank.org/wbi/knowledgefordevelopment/

Clearly, Israel is positioned to use its indigenous “knowledge-driven supply chains “ for “sustainable development” and the “significant opportunities for reducing poverty” which unfortunately still do exist. 10. SUGGESTED FUTURE WORK

Israel now stands at a major shift of direction in its development paradigm. The Palestinian state is a fait accompli. There are a number of alternative scenarios regarding Palestinian development and its interaction with Israel. The Palestinian authority has become completely dependent on foreign technology and foreign aid for most of it. Foreign funding for development of the Palestinian state will continue into the foreseeable future. The Palestinians do have an educated elite. They were educated at Palestinian universities such as Beer Zeit, various Israeli universities and abroad. Most are fluent in English. However most have emigrated out. The two extreme scenarios are that within some finite time frame the new state will put its house in order, will forsake terrorism of any kind and will concentrate on development and cooperation with Israel. At the other extreme into the foreseeable future, is more of what has been up to the start of 2005, with the added convenience of state sanctioned terrorism dedicated to Israel’s complete destruction, but short of an open war which they are sure to lose. Neither of these extremums is likely. However in between there is a large spectrum of possibilities each having a major impact on Israel’s future development. Several of these need to be identified and defined so that they are as mutually independent as possible and the set of such is exhaustive for all practical purposes. Under these conditions it is possible to assign subjective probabilities for 32

the outcome of each using any one of the group decision methodologies widely available in the literature. The results at the end of this exercise can then be used by Israel’s policy makers in planning the further evolution of its economy or in minimizing its devolution. Methodologies for doing the necessary analyses abound - they are within the spectrum of those published in this journal since its founding in 1966. 11. CONCLUDING REMARKS In land size Israel, is ranked 100th country, with less than 1/1000th of the world' population. In s slightly over half of one century, it has transformed from a mostly barren and under-populated land, having a fledgling agriculture performed by inexperienced members of small settler communes and cottage industry manufacturing to a high-tech35 world-class industrial powerhouse, and a world leader in arid zone agriculture. Israeli universities and institutes have created innovations in agriculture and agricultural engineering needs for arid and semi arid zones of the globe and like in the US such developments were immediately transferred to the agricultural communes and to private farmers on a gratis basis and offered to all takers from developing nations around the globe. Today, Israel is among the world leading R&D countries in software, telecommunications, security systems, biotechnology, pharmaceuticals, and the life sciences. It is an undeclared nuclear power, and the world’s 5th largest exporter of indigenously designed advanced (high tech) weapons systems. The above developments, took place while the State was absorbing waves of massive immigrations, engaged in regular wars with an implacable enemy seeking its destruction, and an economy continuously under strain by having to spend more per capita on its own protection than any other country on earth. Above accomplishments would not have been possible without the institutionalized technology transfer from abroad36 and that from indigenous innovations at its government and university laboratories using the US model as reviewed in Reisman and Cytraus, (2004).

With more than 3,000 high-tech companies and startups, Israel has the highest concentration of hi-tech companies in the world apart from the Silicon Valley, US. 36 There is no doubt that some of the transfers were not completely above board. Some were done under various covers, some, as in the case of Soviet weaponry were booty of war, some, as in the case of the defecting Syrian pilot delivering the state-of-the-art Mig 27, were pennies from heaven, and some were outright illegal. However, it is not at all unusual for friendly countries to steal one another’s secrets, Reisman, (2004b).

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REFERENCES: Anonymous (2005) Chip off the Block, The International Jerusalem Post, January 28. pg. 6. Asher, I. M. (1995) Breakthrough Dividend: Israeli Innovations in Biotechnology that could Benefit Americans. American Israeli Cooperative Enterprise. Chevy Chase, MD Bertsch, G.K. (1991), After the Revolutions: East-West Trade and Technology Transfer in the 1990s. Boulder, CO: Westview Press.. ISBN:0-8133-8278-5. Blackburn, N. (2004). The generation gap: Septugenarian Uzia Galil, the founding father of Israel’s technology sector, differs from today’s young high-tech entrepreneurs in more than age. Jerusalem Post: International edition, December 17. pg 20,21. Breagy, J. and J. Murphy (eds.). (1990), Technology Transfer & Economic Development. Washington, D.C.: National Council on Economic Development.. ISBN: 0-317-04804-X. Burnside, J. (2005) IAI Rolls Out Gulfstream' G150 s
http://www.avweb.com/bizav/11_04/news/189036-1.html January 26.

Don, Y. (1988). Industrialization of a Rural Collective: An Analytical Appraisalof the Israeli Kibbutz, Aldershot: Averbury. Getz, H. (2001), Survey of Changes in Kibbutzim, Kibbutz Research Centre, University of Haifa, (Hebrew). Globes [online] (2004) - www.globes.co.il - March 29. High-Tech & Investment Report July 2003, http://www.ishitech.co.il/0703ar3.htm Hoekstra, T.W. and Shachak, M. (1999). Arid Lands Management: Toward Ecological Sustainability. University of Illinois Press, Urbana, Chicago. Hoekstra, T.W. (2004), Private communication. Honing, B., and Sheaffer, Z., (2003) A Panel Study of Organizational Embeddedness, Demographic Depletion, and Organizational Change, Working paper, 2003-08MOB, School of Business and Economics, Wilfrid Laurier University, Waterloo, Canada. Human Development Report (2003), UNDP, New York, December. http://www.undp.org/hdr2003/ International Monetary Fund, (2004), Israel and the IMF, Country Report No. 04/173, June 24. http://www.imf.org/ Meir, O. (2004), Personal communication, Israel Central Bureau of Statistics (C.B.S.), oram@cbs.gov.il Laing, Y, (2004) The capitalization of a kibbutz. The international Jerusalem Post, October8. National Business Incubation Association, (US), http://www.nbia.org/ Nationmaster (2004). http://www.nationmaster.com/ Meir, O. (2004) Personal communication Parente S.L and Prescott EC (2000), Barriers to Riches, The MIT Press, Cambridge MA. Reddy, N.M. and L. Zhao. (1990) International technology transfer: A review. Research Policy 19(4):285-307 (Aug. 1990). ISSN: 0048-7333.
http://www.wlu.ca/~wwwsbe/sbe2000/html/sbe_working_paper_series/2003-08-MOB.pdf

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Reisman, A. (2004a) “Transfer of Technologies: A cross-disciplinary taxonomy”. An invited paper presented at the “Caucasus and Central Asia in the Globalization Process” International Conference Qafqaz University, May 12-13 2003, Baku-Azerbaijan. Omega: The International Journal of Management Science. 33(3) pp 189-202. Downloadable from: http://ssrn.com/abstract=529423 Also available online via ScienceDirect: http://authors.elsevier.com/sd/article/S0305048304000647 Reisman, A. (2004b), Illegal Transfer of Technologies: A Taxonomic View, Forthcoming in: The Journal of Engineering and Technology Management. Downloadable from: http://ssrn.com/abstract=532522 Reisman, A., and Cytraus, A. (2004). Institutionalized Technology Transfer in USA: A Historic Review. Working paper. Downloadable from: http://ssrn.com/abstract=585364 Reisman, A. Capar, I. Akta , E. (2004a), “Turkey’s Development: The Role of Technology Transfer”. Working paper. Downloadable from: http://ssrn.com/abstract=607841 The World Bank Group, (2004).
http://web.worldbank.org/WBSITE/EXTERNAL/NEWS/0,,contentMDK:20035595~menuPK:36691~pagePK: 116743~piPK:36693~theSitePK:4607,00.html#mediadc.

Willax, Paul, (2004) Tech transfer gives rise to enterprising ' middlemen'Washington Business , Journal, May, 24. Yaron, D., Cooper, A., Golan, D. and Reisman, A. (1983) “Rural Industrialization – Analysis of Industrial Plants for Kibbutz Settlements in Israel”, Applications of Management Science, JAI Press, Greenwich, Conn. and London. 3, pp.261-291 Ulengin, F. Ulegin, B. And Onsel S. (2002), A Power-based Measurement Approach to Specify Macroeconmic Competitiveness of Countries. Socio-Economic planning Sciences, 36; 3 203-226. UNCTAD/WTO (2004), International Trade Centre http://www.intracen.org/tradstat/sitc33d/er376.htm http://www.agri.gov.il/ http://www2.tau.ac.il/EU/Technology%20Transfert%20Workshop.pdf http://www.science.co.il/Technology-Incubators.asp http://www.science.co.il/Technology-Parks.asp. http://www.icn.co.il/ http://www.incubators.org.il/h22000.htm. http://www.incubators.org.il. http://www.unido.org/data/UNIDO/Stats/StaCountry http://www.weforum.org.gcp. http://www.shaham.moag.gov.il http://www.gemsinisrael.com/e_article000047913.htm. http://www.gosb.com.tr/tr/news.aspx?news_id=346 (in Turkish). http://www.wlu.ca/~wwwsbe/sbe2000/html/sbe_working_paper_series/2003-08-MOB.pdf http://www.cbs.gov.il/fr_trade/tc3.xls ... http://www.granot.co.il/eng/welcome.htm http://www1.cbs.gov.il/shnaton54/st16_01.pdf http://www.imf.org/ http://www1.cbs.gov.il/shnaton54/st02_01.pdf 35
http://www.economist.com./markets/indicators

http://www.worldbank.org/data/datafaq.htm#taiwanchina nbri@tx.technion.ac.il http://ag.arizona.edu/OALS/IALC/Home.html http://ag.arizona.edu/OALS/watershed/index.html. http://ag.arizona.edu/OALS/IALC/review.html. http://www.intracen.org/tradstat/sitc3-3d/er376.htm http://www.science.co.il/ http://www.weforum.org/site/homepublic.nsf/Content/Global+Competitiveness+Programme%5 CGlobal+Comp.. APPENDIX A.1. Academic Institutions Bar-Ilan University
Bar-Ilan Research & Development Company Ltd. Bar-Ilan University, Ramat-Gan 52900 Tel: 972 3 531 8441 Fax: 972 3 535 6088 E-mail: birnd@ashur.cc.biu.ac.il

The company focuses on New Drugs, Biotechnology, Medical Instruments, Agriculture & Food, Diagnostics, and Immunotherapy. The site offers detailed project descriptions. Ben-Gurion University of the Negev
B.G. Negev Technologies & Applications Ltd. Ernst David Bergmann Campus. P.O.Box 653 Be'er Sheva 84105 Tel: 972 7 646 1908/9 Fax: 972 7 627 6420 E-mail: orabgn@bgumail.bgu.ac.il

"BGN represents the University in all its contacts with industry, such as the commercialization of know-how, joint ventures, establishment of incubators and start-up companies, industrial services, licensing and protection of proprietary rights by patents." Technion, Israel Institute of Tecchnology
Technion Research and Development Foundation Ltd. Senate Building, Technion City Haifa 32000 Tel: 972 4 822 1590 Fax: 972 4 832 3056 E-mail: trdf@tx.technion.ac.il

The company provides consulting services, and has a subsidiary, Dimotech, for commercial exploitation of Technion research.
Dimotech Dimotech Ltd. Gutwirth Science Based Industries Center, Technion City, Haifa 32000 Tel: 972 4 823 5829 Fax: 972 4 832 0845 E-mail: lamiel@techunix.technion.ac.il

Dimotech is a technology incubator which fosters start-up companies developing and marketing products based on Technion research. It also offers co-operation in research projects. Providing entrepreneurs with optimal conditions for transforming promising new technologies into successful high-tech companies. TEIC assists zero-stage, technology-based start-ups develop products and innovative technologies for 36

tomorrow' markets. The incubator specializes in supporting and promoting technological enterprises s from initial concept and development and implementation Hebrew University of Jerusalem The Hebrew University of Jerusalem is a mine of innovations, and its wholly owned subsidiary Yissum Research Development Company - is the organization responsible for the commercial exploitation of this economically valuable asset. Set up by the Hebrew University in 1964 as an independent legal entity, Yissum was granted the exclusive right (and obligation) to protect, promote and commercialize the University' intellectual s property. Thus Yissum:
• •

Identifies applicable research within the University. Undertakes and maintains patent, or other protection, of commercially promising research findings. Promotes and markets suitable projects. Negotiates agreements with potential licensees. Sets up new start-up companies and other joint ventures with business partners. Oversees contract research and other services carried out at the University for external organizations. Follows up post-contractual arrangements. The Yissum Company, earned $30 million in royalties during 2002.

• • • •

Tel Aviv University
Ramot Ramot- University Authority for Applied Research and Industrial Development Ltd. 32 H. Levanon St., P.O.B. 39296 TelAviv 61392 Tel: 972 3 642 8765 or 640 8113 Fax: 972 3 642 9865 Email: ramot@ccsg.tau.ac.il

The site includes a database of available research projects.
Rad-Ramot 2A Katzir Street Tel Hashomer, Ramat Gan 52656 Tel: 972 3 635 0002 Fax: 972 3 534 1650.

Rad-Ramot is a technological incubator run as a joint venture between technology group Rad and Tel Aviv University. 37

Weizmann Institute
Yeda Research and Development Co. Yeda at the Weizmann Institute of Science POB 95 Rehovot Israel 76100 Tel: 972 8 9470617/8 Fax: 972 8 9470739 Email: info.yeda@weizmann.ac.il

The Weizmann Institute of Science is "an international center of scientific research and graduate study." The Yeda site provides a list of available research projects under the following headings: Life Science and Medicine; Agriculture; Chemistry & Materials; Environment & Energy Sciences; and Electronics, Electro-Optics & Computer Sciences. Migal Galilee Technology Center

Southern Industrial Zone, P.O. Box 831 Kiryat-Shmona 11016 Israel

Migal is a research institute affiliated with the Tel Hai Academic College. A.2. Medical Institutions Hadassah Medical Organization
Hadasit Tel: 972 2 643 7550; Fax: 972 2 643 7712 E-mail: arik@hadassah.org.il

A subsidiary of Hadassah Medical Organization (HMO). Activities: Commercial exploitation of know-how, patents and technologies developed at HMO; service contracts for clinical and pre-clinical studies; joint ventures utilizing HMO research facilities. A.3. Government Bodies Israel Institute for Biological Research
Life Science Research Israel Tel: 972 8 938 1656 Fax: 972 8 940 1404

The Israel Institute for Biological Research is under the auspices of the Prime Minister' Office, and s describes itself as "A Single Site Address for Leading Edge Resourceful Solutions in the Fields of Biology, Chemistry, Ecology and Public Health " It runs the annual Oholo International Conferences on biology, chemistry and environmental sciences. Ministry of Agriculture

Peri POB 6, Bet Dager 50250 Tel: 972 3 968 3696 Fax: 972 3 968 4044

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Peri represents the Agriculture Research Organization (ARO) and other units of Israel' Ministry of s Agriculture. It promotes partnerships and joint ventures, and provides consultancy services. A.4. Elaboration on some of the above technology transfer units: The Technion, Israel Institute of Technology in Haifa established its Technology Transfer Unit acts as an interface between the accumulated knowledge and expertise of NBRI research and technical staff as well as the various testing and research laboratories and measurement systems and the practice daily needs to solve special practical problems, where NBRI capabilities may be exploited. The Technology Transfer Unit serves as the coordinating arm between the practical needs, as identified by government, industry and private offices and NBRI capabilities and knowledge to solve problems, to advance technologies and to enhance the construction quality. The Technology Transfer Unit tailors the experts group and facilities to each problem and accompanies the contact between industry and the NBRI experts’ team until the problem is successfully solved. Some Activities of the Technology Transfer Unit are: 1. A thorough evaluation of a building system or a building product, that is summarized in a detailed evaluation report (similar to the Agreement or Avis Technique). 2. Advanced testing (in all fields of building science like structural engineering, building materials and technology, performance of buildings and building physics) according to local or international standards, and especially in the absence of appropriate standards, where special testing, measurements and interpretation is required. 3. Technical support, advanced analysis and consultation to designers, construction companies and industry, to solve special problems where NBRI expertise is required. 4. Quality Evaluation of Buildings, including examination of defects, malfunctioning, damage and failure analysis and preparation of experts’ reports to court’s request. 5. Earthquake preparedness (including evaluation of existing buildings resistance, analysis of potential damage, retrofit methods, cost-effective analysis to support rational decision making, etc.) 6. Expertise in structural engineering, including strength and stability, damage and failure, protective structures, structural optimization, advanced design methods, soil-structure interaction, etc. 7. Expertise in materials and technology, including improved cement products, high performance concrete, special purpose concrete, plasters and finish works, coatings and paints, recycling of building materials, new building products, corrosion and durability, etc.

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8. Expertise in building physics including thermal performance and thermal insulation, fire resistance, acoustic performance, performance criteria, climatic conditions, air quality, wind effects, intelligent buildings etc. 9. Construction management support (e.g. Project management techniques, Maintenance management, Quality management etc.) 10. Building Economics, life-cycle cost and cost effectiveness evaluation. 11. Multi-disciplinary expertise for complex problems 12. Literature surveys and Information services.
nbri@tx.technion.ac.il

The Business Development Unit of TRDF Ltd., is responsible for the commercialization of the Technion' IP* (Intellectual Property). s With a sound understanding of the interests and needs of the marketplace, together with up-to-date knowledge of the Technion' research projects, the Business Development Unit assists and supports s inventors and researchers in protecting their IP rights' commercializing the IP and forming the optimal alliances among scientists, industry and investors. As a part of its objectives of enabling the Transfer of Technologies to the business community, the Business Development Unit plays an active role in negotiating with strategic partners, licensees and investors. TEIC, established in 1991, is acclaimed to be Israel' leading technological incubator. It is located at s the Matam Advanced Technology Center in Haifa, Israel. Its mission is to assists zero-stage, innovative high technology-based start-ups develop products for tomorrow' markets. The incubator s specializes in supporting and promoting technological enterprises from initial concept and development and implementation to profitable commercial venture.

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