Cooperation Between Israel
and the State of Indiana

Binational foundation grants shared by Indiana institutions:

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

Indiana State
Indiana University
Indiana University Medical School
Purdue
Purdue Medical School
Notre Dame
USDA Soil Erosion Lab
Valparaiso

Agreements with Israel

None. Indiana did announce plans in September 2000 to open a trade office in Israel.

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, including the environment, science and technology, education 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.

Indiana does not yet have a formal partnership with Israel; nevertheless, in 2007, Indiana exported over $48 million worth of manufacturing goods to Israel. The total value since 1996 reaches almost $414 million. In addition, Indiana companies received approximately $566,738 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 now ranks as Indiana's 40th leading trade partner.

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 Indiana.

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, including Indianapolis.

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 Indiana is limited only by the imagination.

Indiana Firms Profit From Business With Israel

As the only country with free trade agreements 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 McDonald's have found that it is indeed profitable to do business in Israel.

At least 70 Indiana companies have discovered the benefits of doing business in Israel, including Magnavox, ALCOA, Allied-Signal, Colgate Palmolive and ITT Aerospace.

Biomet has been doing business in Israel for about ten years, says Tom Allen, Director of International Sales, Marketing & Operations. The company sells orthopedic equipment, such as hip and knee replacements. Allen says it's a good market for the size of its population (roughly six million) and that it's easier to do business in Israel than many countries like Japan and France. "The Israelis always meet their payment terms and that puts them in the top ten," says Allen, who sees the country as a growth market for his products because of its aging population. Given his positive experience, he enthusiastically recommends that other companies look for business opportunities in Israel.

Edmond Schaefer, Magnavox's Director of International Marketing, has also found Israel a good place to make money. "Magnavox has been doing business with Israel for about 20 years," he says. "We sell defense communications equipment and the Israelis in this industry are high caliber. You need to be patient and flexible," he adds, "but it's definitely a place where a company can make a profit."

ITT Aerospace is another company with long experience in Israel. "Israel's military needs make it a good market," says President and General Manager Dr. Marvin Sambur, whose company sold military radios to the Israel Defense Forces. "It's also a good place to visit; I learned a lot from dealing there. Israel's also a growing marketplace, which goes beyond the military."

One of the benefits to doing business there, adds Sambur, is that Israelis make up their minds quickly and then go forward. "The defense industry is a tough one to crack. It's a long process to establish yourself in the market." Since Israel uses a lot of the same equipment as the U.S. Army, which ITT supplies, Sambur looks forward to doing more business in Israel in the future.

One good way to break into the Israeli market is through a joint venture with an Israeli company. Funding for such projects is available 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 $700 million in both countries and created an estimated 20,000 American jobs. Up until now, no Indiana 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

Indiana researchers are making scientific breakthroughs and developing cutting-edge technologies in joint projects with Israeli scientists supported by the Binational Science Foundation (BSF). 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.  Purdue, Notre Dame and Indiana University have shared with counterparts in Israel more than $1.1 million in BSF grants awarded since 1987.

Purdue's Louis Sherman studies photosynthesis in organisms called prokaryotes, a type of bacteria that doesn't contain a nucleus. He is trying to understand chlorophyl binding mechanisms to explain how photosynthesis occurs under different conditions, a project that could have important implications for agriculture. He has applied for a new grant to continue the research to learn more about photosynthesis in extreme environments, for example, to see how cells maintain themselves in the desert.

Sherman says he and his Hebrew University collaborator have different but complementary skills. "Dr. Ohant is well-known for his research related to photosynthesis and has built special equipment that aided our work. Israelis are very good at studying extreme events like drought and Sde Boker, where the research is done, is like no other lab in the world."

Some BSF projects have practical applications, such as the work of chemical engineer James Carberry at Notre Dame, whose research on the effects of changing crystallite sizes has important implications for the chemical, petroleum and food industries.

Other projects, however, involve basic science, and are meant only to stimulate advances in a particular field. This is typically the case of grantees in mathematics. Notre Dame's William Dwyer, for example, works in a branch of mathematics that studies higher-dimensional shapes and tries to find quantitative ways to describe their forms. Together with his Hebrew University colleague, Emmanuel Dror-Farjoun, Dwyer hopes to ultimately reach a comprehensive understanding of higher-dimensional geometry. Dwyer met his collaborator in graduate school and values the association. "Emmanuel is energetic, imaginative, inventive, fun and productive to work with," says Dwyer. "and has helped push our field further."

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

Finding new ways to protect Indiana's corn crops and egg production are just two of the benefits of joint research projects conducted under the auspices of 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. BARD funds projects in 45 states and the District of Colubmia. In 2005, 28 projects were funded at 31 U.S. institutions. Indiana institutions have shared grants worth more than $6.7 million since 1987.

Bernie Engel is an Agricultural and Biological Engineer at Purdue who has been trying to develop a sensor that can determine the quality of fruit so it can be sorted more efficiently. He has been working with cantaloupes while his Israeli counterpart has worked with tomatoes. Both are using different types of sensors to detect qualities like firmness and aroma. "The innovation," he said, "is the software we've developed using artificial intelligence that puts all the sensory inputs together to judge quality." The idea is to have the sorter use the system to insure only the highest quality fruits and vegetables reach the grocer.

Does this mean you'll never see another piece of rotten fruit in the store again? Not quite, Engel says, but he hopes once the program is commercialized, it will significantly improve the quality of produce.

The collaboration was very successful, Engel adds. "The Israelis are some of the best researchers in the world in the field of automation for fruit and vegetable sorting." Combining their skills with his own expertise in using computing technology to solve agricultural problems, has enabled the team to develop a system with great potential commercial value.

Purdue University Developmental Physiologist Nick Carpita has had two BARD grants to study the structure of cell walls. His most recent project involved research on tobacco and carrot cells to learn more about how plants tolerate salt. Ultimately, the findings could help scientists manipulate genes in plants to enable them to grow normally in a salty environment. The collaboration with gave Carpita the opportunity to work with Hebrew University's Debbie Delmer, one of the leading scientists in the field, "the matriarch of plant biology." He said his colleague's expertise working with cell walls and seed biology complemented his own proficiency in chemistry.

In another project, researchers at the State University of Indiana at Terre Haute have discovered a virus that may protect corn, barley and oats from smut diseases. This research may enable farmers to kill diseases and pests that threaten the State's corn crops.

BARD research done outside the State also benefits Indiana. For example, the State's egg industry has benefitted from BARD projects that produced a vaccine that prevents infections that cause egg production losses.

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:

Indianapolis Western Galilee

N.W. Indiana Western Galilee

Hillel Campus Profiles

State Contacts

Sherwin Pomerantz, Israel Director
Indiana Department of Commerce
c/o Atid EDI Ltd.
Bldg. 2, Har Hotzvim
POB 45005, 91450 Jerusalem
Israel
Tel: 011-972-2-571-0199
Fax: 011-972-2-571-0713
E-mail: sherwin@atid-edi.com
URL: www.atid-edi.com/indiana.htm

Jewish Federation Greater Indianapolis
615 N Alabama St #-412
Indianapolis, IN 46204-1434
Tel. 317-637-2473

Indianapolis JCRC
1100 West 42nd St.
Indianapolis, IN 46208
Tel. 317-926-2935
Fax. 317-926-2952

Jewish Federation
2939 Jewett St.
Highland, IN 46322
Tel. 219-972-2250

Michigan City United Jewish Welfare Fund
Temple Sinai, 2800 S. Franklin St.
Michigan City, IN 46360
Tel. 219-874-4477

Jewish Federation
105 Jefferson Center, #804
South Bend, IN 46601
Tel. 219-233-1164

Jewish Federation
105 E Jefferson Blvd #-804
South Bend, IN 46601-1917
Tel. 219-233-1164

Fort Wayne Jewish Federation
227 East Washington Blvd.
Fort Wayne, IN 46802
Tel. 219-422-8566
Fax. 219-422-8567 (f)

Evansville Jewish Community Council
P.O. Box 5026
Evansville, IN 47716
Tel. 812-476-5091

Federated Jewish Charities Hillel
912 W. State. St.
W. Lafayette, IN 47906
Tel. 317-743-1293