Cooperation Between Israel
and the State of Kentucky

Binational foundation grants shared by Kentucky institutions:

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

University of Kentucky
University of Louisville
University of Louisville Medical

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, 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.

Kentucky does not yet have a formal partnership with Israel; nevertheless, in 2006, Kentucky exported almost $72 million worth of manufacturing goods to Israel. The total value since 1996 now exceeds $297 million. In addition, Kentucky companies received $29,256,111 in 2006 for U.S. government-funded military contracts with Israel through the Foreign Military Financing (FMF) program (America's military aid to Israel). Israel now ranks as Kentucky's 27th 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 Kentucky.

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 Louisville.

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 Kentucky is limited only by the imagination.

Kentucky 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.

More than 100 Kentucky companies have discovered the benefits of doing business in Israel, including IBM, Jim Beam, Oshkosh B’Gosh, and Westinghouse.

Coroly Tartar, a contract administration specialist, for Conco Inc. said that they have been selling ammunition containers to Israel for four years. The Israeli military put in a request for a quotation and Conco bids on them. Tartar said that Israel has been a good customer and Conco’s experience dealing with Israel has been good compared to other countries.

Off and on for about 20 years Keco Industries Inc. has been selling air-conditioning units to the Israeli Air Force. Keco actually manufactures the units, which then go to a freight forwarder (exporter) and then end up in Israel. Jeff Andrews, contract administrator for Keco, said that they had a pretty good relationship with Israel and that the Israeli Air Force comes to Keco whenever they need a product.

National Band and Tag Company has been exporting chicken bands to Israel for more than 25 years. When the company advertised in an international publication, a few Israeli customers were attracted. National Band and Tag Co. has one or two buyers in Israel who buy large quantities and then distribute to individuals who want tags. National Band and Tag Co. also sells animal tags to research universities.

HY-Q International's, B-D Crystal Subsidiary does business with Israel through its offices in Australia or England and also through a consortium in California, said Vice President of sales Pam Deschler. A California company orders frequency control crystal products used in anything wireless, such as timing devices for electric components, and then ships the products worldwide, including Israel. HY-Q has been doing business this way for the past couple of years.

The Information Products Division of IBM has been exporting printers to Israel for the past several years. Rather than going directly to Israel, however, the Kentucky branch ships them to New Jersey where the actual marketing and selling take place. In addition, IBM has headquarters in Europe that deals mainly with Israel. If the European warehouse does not have a certain item, they may come to the U.S. in which case the Kentucky manufacturer supplies the New Jersey warehouse.

Several other companies in Kentucky also export to Israel through other locations, including Atochem North America which sells synthetic resin, Ingersoll-Rand Company Centrifugal Compressor Division, and Jim Beam Brands Company which sells whiskey.

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). 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 $5 billion, tax revenues of more than $700 million in both countries and created an estimated 20,000 American jobs. Up until now, no Kentucky 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 Kentucky have shared with counterparts in Israel $105,000 in grants awarded by the Binational Science Foundation (BSF) in the last ten years. BSF was established in 1972 to promote research cooperation between scientists from the United States and Israel. It has awarded nearly 3,000 grants, involving more than 2,000 scientists more than 400 institutions in 44 states, the District of Columbia and Puerto Rico.

Microbiology Professor Ron Doyle of the University of Louisville Medical College has been collaborating with Mel Rosenberg of Tel Aviv University to study the hydrophobic properties of bacterial cell surfaces. An example of this may be when one has a sore throat; the bacteria adhere to the mucosal cells causing discomfort. Together, Doyle and Rosenberg edited a book for the American Society for Microbiology, which is considered a prestigious honor. Out of this research came a tangible product. Rosenberg started a company in Israel that markets mouthwash that disrupts the hydrophobic interactions between bacteria and tissue. This product has become the most popular mouthwash in Israel. According to Doyle, it actually removes bacteria while others only prevent the bacteria metabolism for a while. So far, Rosenberg has one patent in the U.S. and is trying to get another approved by the FDA.

Professor Doyle has also worked with the Garbers, a husband and wife research team based out of Bar-Ilan University. The collaborators studied certain bacterial organisms that kill cystic fibrosis, burn and aged patients. They discovered that if they made a vaccine out of lectins, carbohydrate proteins, it would prevent the adhesion of bacteria on the tissue of these patients. By preventing this adhesion, they would prevent colonization that turns into toxic bacteria, which ultimately becomes lethal and will kill the patient.

In addition to working with Israelis through BSF grants, Doyle has worked with Professor Itzchak Ofek of Tel Aviv University on his own. They studied adhesion and wrote a widely acclaimed book on the topic. Professor Doyle had extremely positive experiences dealing with Israel and collaborating with their scientists. Regarding the Binational Science Foundation, he thinks it is a great program that needs to be expanded because there are many good proposals that are not funded. Doyle was attracted to the program because he has been “able to maintain a friendship with Israelis and see a sense of ability in them. Money is very wisely spent in Israel and they don’t waste it the way Americans do; $2000 for Israelis goes a long way.” Doyle, also a reviewer of BSF grant applications, said that the program is “very good for the USA by virtue of cooperation with the talented Israelis. We both come out ahead and [the cooperation] is good for both the U.S. and Israel.”

BSF was established in 1972 to promote research cooperation between scientists from the United States and Israel. BSF-sponsored studies benefit the United States by extending research resources to achieve milestones that might not otherwise be attainable; introducing novel approaches and techniques that can lead American researchers to move in new directions; confirming, clarifying and intensifying research projects; providing access to Israeli equipment and facilities and early access to Israeli research results that speed American scientific advances. BSF documented no less than 75 new discoveries that probably would not have been possible without foundation-supported collaboration.

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 prevention of transmitting plant viruses via insects and improving the nutrition of cattle are two examples 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 in 45 states and the District of Columbia. In 2005, 28 projects were funded at 31 U.S. institutions. New projects promote increased quantity and improved quality of agricultural produce. Kentucky institutions have shared grants worth more than $1.8 million since 1987.

Professor David Harman of the University of Kentucky has been studying the nutritional effects of starch on animals. His overall goal is to improve how animals digest starch by giving them different nutritional treatments that will hopefully enable farmers to improve the growth of their cattle using less feed. Harman is collaborating with Dr. Bruckental of the Hebrew University in Jerusalem. In Kentucky, the research team studies the effects on beef cattle while in Israel they examine dairy cattle. Although distance has been a challenge, according to Professor Harman, he has had a very positive experience sharing data, plans and comments back and forth with his counterpart in Israel.

Professor of Plant Pathology Thomas Perone, also of the University of Kentucky, has received several BARD grants dating back to the 1980's. He is now studying the transmission of plant viruses by insects with scientists at the Volcani Center, a plant research institute, in Israel. By studying this process, the collaborators hope to ultimately understand virus transmission and find a way to stop it, thus saving many important and useful species of plants. This study is important because it pertains to most plants. The research focuses on the tobacco plant and zucchini. Perone feels that his Israeli counterparts have been “good collaborators.” His last BARD grant recently expired and he is currently in the process of writing a new proposal.

A team of agricultural economists from the University of Maryland and the 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. New projects promote increased quantity and improved quality of agricultural produce.

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:

Louisville Western Galilee

Hillel Campus Profiles

State Contacts

Jewish Federation of Central Kentucky
340 Romany Rd.
Lexington, KY 40502
Tel. 606-268-0672

Jewish Federation of Louisville
3630 Dutchmans Lane
Louisville, KY 40205
Tel. 502-451-8840