Cooperation Between Israel
and the State of Iowa


Exports to Israel in 2007: $35,618,170
Percentage change from 2006: -2.19
Israel's rank as trade partner: 32
Total exports since 1996: $277,284,186
Military Contracts with Israel in 2006 Using Foreign Military Financing: $34,434,933
Jewish Population in 2001: 6,100
Jewish Percentage of Total Population: 0.2

Binational foundation grants shared by Iowa institutions:

BARD (1987-2005): $3,925,330
BSF (1987-2005): $543,200
BIRD (1980-2005): $0

Recipients of grants from U.S.-Israel binational foundations:

Iowa State
University of Iowa
University of Iowa Medical School
University of Northern Iowa
USDA National Soil Tilth Lab
U.S. Dept. of Energy Ames Lab

Agreements with Israel

None.

Partners For Change

The U.S.-Israel relationship is based on the twin pillars of shared values and mutual interests. Given this commonality of interests and beliefs, it should not be surprising that support for Israel is one of the most pronounced and consistent foreign policy values of the American people.

It is more difficult to devise programs that capitalize on the two nations' shared values than their security interests; nevertheless, such programs do exist. In fact, these SHARED VALUE INITIATIVES cover a broad range of areas such as the environment, energy, space and health.

Today's interdependent global economy requires that trade policy be developed at the national and state level. Many states have recognized the opportunity for realizing significant benefits by seeking to increase trade with Israel. No fewer than 23 states have cooperative agreements with Israel.

Though Iowa has no formal agreement, the State has a robust trade relationship with Israel, exporting more than $227 million worth of goods since 1996. In 2007, exports totaled over $35 million, making Israel the State's 32nd largest trade partner. The principal non-agricultural exports are electronics, machinery and fabricated metal. In addition, Iowa companies received approximately $34,434,933 in 2006 for U.S. government-funded military contracts with Israel through the Foreign Military Financing (FMF) program (U.S. military assistance to Israel).

Israel is certainly a place where potential business and trade partners can be found. It can also be a source, however, for innovative programs and ideas for addressing problems facing the citizens of Iowa.

Israel, for example, has developed a number of pioneering education programs. One, the Home Instruction Program for Preschool Youngsters, has been praised by President Clinton as “the best preschool program on earth” and replicated throughout the country.

A range of other exciting approaches to social problems like unemployment, environmental protection and drug abuse have been successfully implemented in Israel and could be imported for the benefit of Americans.

The potential for greater cooperation with Israel for the benefit of Iowa is limited only by the imagination.

Iowa Firms Profit From Business With Israel

As the only country with a free trade agreement with both the United States and the European community, Israel can act as a bridge for international trade between the United States and Europe. Moreover, because of the deep pool of talent, particularly in high-technology areas, Israel provides excellent investment opportunities. Some of the nation's largest companies, such as IBM, Microsoft, Motorola, Intel and National Semiconductor have found that it is indeed profitable to do business in Israel.

Many Iowa-based companies have also discovered the benefits of trade with Israel, including giants like Rockwell International, Amana Refrigeration and the Aluminum Company of America.

Rockwell's Cedar Rapids offices have long been selling military and civilian products to Israel. Currently, for example, Israel's military is buying navigation and communications equipment. Rockwell also subcontracts some of its defense work to Israeli companies. The commercial division exports avionics packages for Israeli business jets.

The Instrument and Life Support Division of Litton Systems has also exported to the Israeli Air Force. Their products include onboard oxygen generating systems. Recently, Israeli Air Force officers came to Davenport for training in the use of onboard inert gas operating systems on the AH-64 Apache helicopter.

Cemen Tech of Indianola was chosen by the Israeli Air Force to design a rapid runway repair system. The first machine has been delivered and the company is hoping the Israelis will order several more. Company President Gary Ruble said doing business with Israel was a "terrific experience. We just want more of it."

Another company that has done well in Israel is Des Moines-based Hicklin Engineering, which has been doing business there for at least a decade. Sales Engineer Jack Campbell said the company has most recently sold equipment used to test transmissions in military vehicles.

Iowa companies have also successfully marketed nonmilitary goods in Israel. Cedar Falls-based Viking Pump, for example, has a distributor in Israel and has been selling industrial pumps and parts used there for at least two decades. And Amana Refrigeration has kept an on-going business relationship with Israel for over thirty years, selling household refrigerators and commercial microwaves through its distributor in Israel.

Joint ventures between Israeli and Iowa companies can obtain funding from the Binational Industrial Research and Development Foundation (BIRD). BIRD funds projects in 33 states and the District of Columbia. The United States and Israel established BIRD in 1977 to fund joint U.S.-Israeli teams in the development and subsequent commercialization of innovative, nondefense technological products from which both the Israeli and American company can expect to derive benefits commensurate with the investments and risks.

Most grant recipients are small businesses involved with software, instrumentation, communications, medical devices and semiconductors. Since its inception, BIRD has funded more than 740 joint high-tech R&D projects through conditional grants totaling more than $210 million. Products developed from these ventures have generated sales of more than $8 billion, tax revenues of more than $200 million in the United States alone and created an estimated 20,000 American jobs.

To date, no Iowa companies have taken advantage of the opportunity to reduce the risk of new ventures and tap into the deep pool of Israeli talent through the BIRD program.

Scientific Innovations

Institutions in Iowa have shared with counterparts in Israel more than $540,000 in grants awarded by the Binational Science Foundation (BSF) since 1987. BSF was established in 1972 to promote research cooperation between scientists from the United States and Israel. It has awarded more than 3,000 grants, involving scientists more than 400 institutions located in 44 states and the District of Columbia. The U.S. Department of Energy Ames Lab, University of Iowa and Iowa State are among the grant recipients.

Ralph Ackerman is a zoologist at Iowa State who has collaborated on three BSF grants with a colleague in Tel Aviv. His focus is on the physiology of vertebrate eggs and embryos. Ackerman studied lizards in the Israeli desert to learn more about their development. He believes obtaining a better understanding of how their eggs exchange water and carbon dioxide will aid efforts to breed and conserve reptiles. "I don't have much chance to work with reptiles in Iowa," he said, so the BSF grant gave him an opportunity to study them in the field. "They have a great lab at Tel Aviv University and world-class reptologists." He described the information he gained from the collaboration as "priceless."

Iowa State chemist Jim Espenson had a common research interest with a professor at Ben-Gurion University and suggested applying for a BSF grant. They examined reactions of metal compounds. The study provided a new way to make organometallic compounds and a better understanding of the chemistry related to free radical molecules. Espenson said his collaborator's interest complemented his own and that the give-and-take help refine their thoughts. Each also had access to techniques the other lacked, so both researchers benefitted.

Much of the BSF research is at a basic level so the applications are not immediately apparent. This is particularly true of the work of mathematicians. Paul Muhly studies operator algebras at the University of Iowa. The math is complex, but, he said, the construct underlies modern physics. Explanations for why water boils and some other liquids freeze, as well as the electromagnetic forces in nature are based on the type of math explored by Muhly. It also plays a role in the design and control of systems, for example, figuring out how to keep an airplane flying.

"We make a good team," Muhly says of his collaborator from the Technion. "We've written about 20 papers together. Mathematicians need few resources; however, the ability to talk face to face and exchange ideas is essential and the BSF grant allows us to travel to do that."

BSF documented no less than 75 new discoveries that probably would not have been possible without foundation-supported collaboration. These advances included the development of new methods and techniques, the discovery of new phenomena and major theoretical breakthroughs.

A 1999 external economic review took an in depth look at 10 BSF projects. These 10 alone, produced aggregate benefits of $780 million, a figure four times the total expenditure of BARD since its inception (1978). The benefits accrue to the United States, to Israel and to both countries together.

Agriculture Benefits

The Binational Agricultural Research and Development Fund (BARD) was created in 1978 with equal contributions by the United States and Israel. Since its inception, BARD has funded more than 800 projects that have led to new technologies in drip irrigation, pesticides, fish farming, livestock, poultry, disease control and farm equipment. In 2005, 28 projects were funded at 31 U.S. institutions. Iowa State has shared grants worth more than $3.9 million since 1987.

Don Reynolds is investigating a disease that afflicts turkey poults. By comparing data from Israel, it was possible to determine the cause was not related to the origin of the birds. He and his collaborator characterized infections that had not been discovered before and hope to find a way to prevent the disease.

If one-hundred units of water fall on arid lands and half is lost through evaporation, crop production is limited. Jerry Hatfield is studying ways of modifying the soil surface to capture more water. Working with his Israeli counterpart, Hatfield says, gives him access to different arid land types and a better understanding of them. He also finds that contact with scientists in different environments broadens his perspective. He called the collaboration "extremely beneficial" and observed that Iowa can benefit from what they learn about water conservation.

Another study examines the impact of agricultural production on groundwater quality. Stanley Johnson is concerned with maintaining farming efficiency while maintaining water quality so it meets the requirements of the Clean Water Act. He has looked at crop rotation and different applications of water. Johnson is pleased the BARD grant will strengthen institutional ties between Iowa State and Hebrew University. He believes it will also result in better agricultural research and stimulate interaction that will endure.

Donald Beitz is interested in the genetic material that determines variation in dairy cows. The research could have profound implications for understanding reproduction, health traits and milk production and subsequently affect breeding value. Another application may be to learn more about diseases in livestock. One specific benefit of the BARD grant was to have Israeli researchers verify his results. More generally, it made possible greater scientific interaction, "and you can't put a dollar value on this type of exchange," said Beitz.

Researchers at Iowa State have also analyzed national dairy cattle records and shown that breeding for disease resistance is possible, and that previous U.S. selection for milk production may have inadvertently reduced cow fertility. A computer program developed by the university is now routinely used to evaluate sires. Another project involves the study of intergenerational transfers by farmers, the performance of regional cooperatives and the regulation of nitrogen pollution.

Iowa also benefits from BARD research done elsewhere. For example, BARD grantees are working on a virus that could protect corn from smut diseases.

A team of agricultural economists from the University of Maryland and University of California found that the economic benefits of just five projects—related to cotton, pecans and solarization—exceeded all U.S. investment in BARD.

It is difficult to break down the impact on a state-by-state basis, but, overall, BARD-sponsored research has generated sales of more than $500 million, tax revenues of more than $100 million and created more than 5,000 American jobs.

Other Cooperative Programs

UJA Partnership 2000 Communities:

Des Moines Western Galilee

Hillel Campus Profiles

State Contacts

American-Israel Chamber of Commerce {also covers Iowa)
6311 Wayzata Blvd., #240
Minneapolis, MN 55416-1224
Tel. 612-593-8666
Fax. 612-593-8668
Email. info@aiccmn.org
Web. http://www.aiccmn.org

JCRC
910 Polk Blvd.
Des Moines, IA 50312
Tel. 515-277-6321
Fax. 515-277-4069

Jewish Federation of Greater Des Moines
910 Polk Blvd.
Des Moines, IA 50312
Tel. 515-277-6321

Jewish Federation Of Sioux City
815 38th St
Sioux City, IA 51104-1417
Tel. 712-258-0618