Cooperation Between Israel
and the State of Massachusetts

Binational foundation grants shared by Massachusetts institutions:

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

Agreements with Israel

In 1987, Gov. Michael Dukakis created the Massachusetts-Israel Exchange (MIX) to foster cooperation and enhance trade and joint ventures between the two states.

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. Massachusetts is one of the 22 states that have cooperative agreements with Israel.

In 2007, Massachusetts exported almost $203 million worth of manufacturing goods to Israel. The total value of these exports since 1996 exceeds $2.1 billion. In addition, Massachusetts companies received $26,843,976 in 2006 for U.S. government-funded military contracts with Israel through the Foreign Military Financing (FMF) program. Israel now ranks as Massachusetts' 23th 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 Massachusetts.

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 Worcester.

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 Massachusetts is limited only by the imagination.

Massachusetts 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 U.S. and Europe. Moreover, because of its deep pool of talent, particularly in high-technology areas, Israel provides excellent investment opportunities. Some of America’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 600 Massachusetts companies have discovered the benefits of doing business in Israel, including Boston Systematics, Datel Intersil, Mathworks and Genzyme. In the last decade, some 40 Israeli companies have opened offices in Massachusetts. Boston is, in fact, the fourth largest air passenger market between the U.S. and Israel.

Datel Intersil is an electronics company based in Mansfield that sells Israel electronic components and subsystems, such as data acquisition boards, power supplies and digital panel meters. Datel has been doing business with Israel for 25 years, and, according to Russell Mitnik, Datel’s International Sales Manager, has found it profitable. "Israel is stable financially and on the cutting edge of technology. Israel many times pushes us to advance," said Mitnik.

EquipNet Ltd. is a spin-off of TICI Software Systems Ltd.- a leading Israeli contract engineering software house. Massachusetts-based PRI Automation is a leading U.S. supplier of factory automation systems for semiconductor manufacturers and OEM equipment suppliers. The teamed companies, serving the semiconductor industry, are applying Internet technology and methodology to software that controls, manages, and connects equipment to its users. EquipNet's solution translates data generated in the course of the manufacturing process into a standard off- the- shelf database such as Oracle or SQL server. EquipNet's technology essentially transforms any system into a Web site, thus enabling the application of standard commercial off-the-shelf (COTS) Internet communications protocols and access tools to control and monitor the equipment. System control and monitoring, which can be carried out anywhere, use standard Web browsers, such as Microsoft's Explorer or Netscape, as the common interface and communications route. This will allow companies with multi-national production sites to accumulate data from many sources and analyze them online in a central corporate location.

SilverPlatter Information, a Norwood-based company that sells reference databases over the Internet, has been selling to Israel for "as long as we’ve been in business," according to Vice President and General Counsel David Mirchin. "Most major universities and research facilities buy from us. Israel is one of our largest markets per capita," remarked Mirchin. He added that Israel is a good market because, "a lot of high quality research is being done there."

Nidec sells electronic components that can be used for computers, communications and networking equipment. Marketing Manager Charlie Welsch said that Nidec has been doing business with Israel "ever since the company was formed in the 1970s." He remarked that the advantage of selling to Israel is obvious - "we can make a profit."

For the past 30 years, North Attleboro-based Mini System Inc. has been selling its products to Israel. Mini System manufactures chip resistors, which are films that are used by various industries, such as military and telecommunications companies. Elaine Tanos, Mini System clerk, commented, "Israel is a good market. They’re good customers."

The Natick-based Mathworks, a manufacturer of software for engineers and scientists, has been selling its products to Israel for more than eight years. The company has a distributor in Israel and finds the country to be a "good market," according to Liz Callanan, and "a great place to do business."

Genzyme, the Cambridge-based biotech company, began its relationship with Israel because of its first therapeutic drug, Cerades. The drug is used to treat Gaucher’s disease, a genetic disorder affecting thousands of people around the world, including a disproportionate number of patients in Israel. Genzyme affiliated with Hadassah and Tel Hashomer to institute clinical testing, enhancing treatment to Israelis and sales for Genzyme. Genzyme president Sandy Smith told Link magazine that the added value of working with Israel was the ongoing Israeli research in the disease. The company continued with Israeli collaboration even after the Gaucher drug testing was completed. Smith "loved being in Jerusalem" for the launch of a newer product, SepraFilm, used in tissue damages.

The Waltham-based software company Kollmorgen develops motion-control devices. When its CEO, Gideon Argov, realized the future of these devices was in digitalization, he sought another software/hardware company to help Kollmorgen. He found Israel’s Servatronix in the early 1990s and bought it in 1997. Argov told Link magazine, "It was interesting watching how this innovative Israeli company, with tremendous ingenuity but a lot of improvisational approaches to problem solving worked with, for example, a manufacturing plant we have where they are terrific at production but are run very much by the book...The Israelis learned from the Americans and the Americans learned from the Israelis."

EMC2, a Hopkinton company that handles disk storage for mission critical data storage, entered the worldwide disk storage market in 1990. EMC2 does so much business in Israel that it is able to maintain a Research and Development plant there, and also has its own sales office to handle customers like Bezeq (Israel’s telephone company), the Ministry of Defense, El Al and the Israel Discount Bank.

One company that took advantage of an FMS contract is Boston Systematics, a small business in Worchester that is the sole distributor of software such as Computervision and Unix. Boston Systematics has been doing business with Israel for more than five years and, according to Administrative Assistant Norma Foster, the company does business with Israel because it is a good market.

In 1996, the New England Chamber of Commerce opened the Market Gateway, an office environment aimed at preparing companies new to America. Many of the first companies to use this service have been Israeli organizations, such as NCC and Oridion. Massachusetts Governor Paul Cellucci observed after his 1998 trip to Israel, "There are several Israeli companies in Massachusetts and Massachusetts companies in Israel. We are the first state to have a trade office there and it has helped generate a lot of trade."

One 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 derive benefits commensurate with the investments and risks. BIRD funds projects in 33 states and the District of Columbia. 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. Several Massachusetts companies have taken advantage of the BIRD program, including ACME, Inc., Analog Devices, BID Medical Center, Inc., Elron Software, IRIS Graphics, Kopin, Inc., Brooktrout Technology and Data General Corporation. Massachusetts companies have shared nearly $7.5 million in BIRD grants since 1987, making the state the third highest recipient after California and New York.

Elron Software is a Cambridge-based Internet software company that was acquired by Elron Electronic Industries of Israel two years ago to spearhead Elron Electronic’s expansion into the U.S. and worldwide software markets. Ivan Sullivan, President of Elron Software, explained, "The marriage occurred because we had access to the U.S. market and Elron Electronic had a very fine technology base." In the two years since Elron Software has been acquired, it has come to hold "the number one position in producing integrated software for Internet risk management," said Sullivan. The company has produced four separate modules of this software, two based entirely on technology acquired from two Israeli software companies that Elron Software bought. "The quality of Israeli software is world-class," commented Sullivan, "Israel has fine technologists who produce market-savvy products in a short amount of time." Elron Software used a BIRD grant to develop an innovative product to provide security to email.

Visus Ltd. is a leading Israeli designer of advanced non-imaging optical systems for lighting and other photonic devices, including efficient and compact backlights to various Liquid Crystal Displays (LCDs). Massachusetts-based Kopin Corporation is a U.S. developer and manufacturer of advanced semiconductor wafers and electronic digital devices. Today it is a leading developer and manufacturer of state-of-the-art, high pixel density, small format flat panel display technology. The two companies will jointly develop and manufacture thin light-emitting diodes (LED) backlights, and market them with Kopin's miniature LCD's. Their collaboration will result in new ultra- thin products with improved optical efficiency and uniformity. The backlight will be smaller, lighter, more uniform and less expensive to manufacture than existing LED backlights. Since size is the key in the mobile data phone market, one of the critical features of the AM LCD is its compactness. Other markets with the backlight application include digital still cameras and camcorder viewfinders.

Since 1990, Bedford-based Iris Graphics, Inc. has been owned by Israeli-based Scitex Corporation. Iris Graphics manufactures digital color proofers, which are high resolution color printers that are used by service bureaus, ad agencies and commercial printers to make "contract proofs" that simulate what a final printed piece will look like when run on a printing press. The companies used a BIRD grant to create a remote proofing system. "Working with Scitex has proven to be mutually beneficial," commented Kelly Peterson, Marketing Manager. "Iris provides a valuable missing link in the Scitex product portfolio and Scitex promotes Iris through their tremendous worldwide sales and marketing channels." She added, "The people who work at our Israeli headquarters are educated, gracious, forthright and outgoing. They’re a pleasure to do business with."

In the communications industry, Analog Devices of Norwood joined with Libit Signal Processing in Israel. Analog Devices designs, manufactures and markets a wide range of integrated circuits for the communications industry. The BIRD-sponsored project merged Analog Devices’ low-cost, high-performance circuits with Libit’s digital communications expertise. The result was a software and hardware platform capable of sending and receiving data at high rates. This technology can lead to improvements in fields such as encryption security, voice processing and text-to-speech programs.

Scientific Innovations

Massachusetts researchers are making scientific breakthroughs and developing cutting-edge technologies in joint projects with Israeli scientists supported by the Binational Science Foundation. BSF was established in 1972 to promote research cooperation between scientists from the United States and Israel. BSF 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. Harvard University, MIT, Brandeis, Boston University, Tufts Medical School and Boston College are among the Massachusetts institutions that have shared nearly $9.8 million with counterparts in Israel through grants awarded by BSF since 1987.

David Latham, Senior Astronomer at the Smithsonian Astrophysical Observatory and Senior Lecturer at Harvard University, joined with an Israeli colleague to answer the question, "Can there be life on other planets?" The scientists are currently searching for extrasolar planets, those surrounded by stars, and researching the frequency and characteristics of binary stars in various stellar populations. They are trying to find out how a star decides to have a stellar or planetary companion, a question that may lead to discovering whether there can be intelligent life on other planets. Latham commented, "This collaboration has been a lot of fun. It’s a good combination of different skills. We have observational capabilities here while my partner is more of a theoretician. We complement each other."

Howard Smith, Senior Astrophysicist at the Harvard Smithsonian Center for Astrophysics used a BSF grant for similar research. Along with a "substantial contribution" from Israeli scientists, Smith studied the formation of very small objects around stars. He tried to discover whether these companions were other stars, such as brown dwarfs, or planets. Even though a new planet has not been discovered, the search for planets around stars has attracted widespread public interest and has been actively reported in the press. Smith commented that his Israeli collaborators are "very smart, experienced and have great ideas." He used money from the grant to visit their observatory in Mitzpeh Ramon.

Associate Professor Salomon Amar from Boston University is a step closer to finding a mechanism for controlling chronic inflammatory diseases, thanks to a grant from BSF. Although he only started this research recently, Amar has found that "we are in a position to learn how to control inflammatory diseases," such as gum disease, Crohns disease, Rheumatoid arthritis and autoimmune diabetes. Many genetic diseases are easier to study in Israel than in America because of the concentrated samples of various populations, such as Eastern European, Moroccan or Ethiopian Jews. Amar commented that he actually trained the Israeli researcher with whom he is working, and the grant "just cemented an ongoing relationship."

Assistant Professor Paul Barbone from Boston University received a BSF grant to team up with Dan Givoli. They work to make computer simulations of mechanical systems more efficient and to assess the behavior of the systems. For example, they have simulated the vibrations of cars to test the effects of a crash and the vibrations of buildings to find the stability of the structures in an earthquake. This research has led to adjustments being made in the makeup of various cars and buildings. Barbone remarked, "We’re building layers on each other’s work. He’s following up on my work, which was a follow-up on his. Before, we would learn from the other’s work indirectly. Now we can have direct interaction." Barbone has had three Israeli partners in his research and has found them all to be "very task-oriented and very good at getting the job done."

Lawrence Scott, Professor of Chemistry at Boston College, used a BSF grant to look at the electronic properties of carbon-rich organic molecules. He tries to put electrons into molecules and then take them out, a process similar to that done in a battery, flashlight, cell phone or electric car, only on the molecular level. This basic research sets ground rules for the future design of lightweight organic materials that can conduct and store electricity. Scott’s lab prepares and synthesizes the materials, then sends samples to Israel for measurements. Scott commented, "The things they do, they do well. But they have limited resources, so they’re eager to collaborate."

Researchers Joseph Kost from Ben-Gurion University in Be'er Sheva, Robert Langer from the Massachusetts Institute of Technology in Cambridge, and Henry Brem from Johns Hopkins University in Baltimore are all researching this project together. Using a group of molecules that combines to form a polymer, a timed release of a drug was developed. Langer and Brem saw the possibility of a polymer as a "remote control" device for the controlled release of drugs. The same idea has been developed for the use of women's birth control and brain cancer treatment.

Science magazine attributed Israeli scientist Professor Nissim Benvenisty of Hebrew University of Jerusalem with key findings in stem cell research. His research, along with his American colleague Douglas Melton at Harvard Medical School in Boston, showed the possibility of using cells for the treatment of different physical problems– heart, muscle, and neuronal conditions. The research team discovered a way to fish out the differentiated neuronal cells from the other cells by use of a Green Fluorescent Protein (GFP). This gene is implanted into the cells and allows the scientists to find the cells that have been differentiated. By differentiating the cells, scientists may find cures in the future for many illnesses covering various limbs and organs of the body.

What precautions can a country make to ensure that their computerized elections are fair and accurate? Natan Linial and Gil Kalai of the Hebrew University in Jerusalem worked together with Jeff Kahn and Michael Sacks from Rutgers University in New Jersey and Stanely Richard at the Massachusetts Institute of Technology in Cambridge to attempt to prevent such events. Using a mathematical theory called influence theory, they constructed computerized models, assigning each method of government a certain probability of vote outcome. Using computers to generate random numbers, the researchers wanted to find whether another computer would generate the same random number without other computers realizing the encryption of the results. To prevent intentional changing of the results, it is best if one line of communication is not the sole method of transmitting the results.

BSF-sponsored studies benefit the U.S. by extending research resources; 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 over 75 new discoveries that 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.

Masschusetts lawmakers approved a $1 million life sciences initiave in 2008 that includes a unique relationship with Israel. The law would authorize joint academic and industrial research and business exchanges with Israel and calls for the creation of trade facilities for pilot projects with the Government of Israel and the Boston Haifa International Life Sciences Institute. Israel and Massachusetts are among the few places that are home to world class research in the life sciences. The partnership provision, which survived several rounds of legislative committee scrutiny, was initiated by Rep. Dan Bosley, a key lawmaker who has gained a deep understanding of Israel, despite the fact that he has a relatively small Jewish constituency. Funding for the partnership is subject to appropriation, but key lawmakers anticipate $10 million over the next ten years.

Agriculture Benefits

Keeping parsley fresh and using fruit pulp to create textures in baked goods are just two goals of Massachusetts scientists doing 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. Massachusetts institutions have shared grants worth more than $1.9 million since 1987.

Professor Peter Hepler of the University of Massachusetts received a BARD grant to work with an Israeli lab to study the role of calcium during the cell death of parsley leaf cells. Hepler tried to determine exactly what causes parsley to lose its shelf life and die after it is picked. The Israeli lab started the research and Hepler helped them with measurements and a lab for calcium work. The team was successful in discovering that calcium levels do elevate during the death of cells. Hepler said the Israelis "are very smart, capable folks." He added, "BARD gives funds for lab support and grad student support. I wouldn’t be involved in this research without BARD."

Michael Peleg, professor of food engineering at the University of Massachusetts, was awarded a grant to collaborate with Israelis to test a gelling agent to give textures to food products. For example, he used a kind of gum to mold fruit pulp into various shapes and textures. The otherwise useless pulp can then be utilized in foods such as ice cream or baked goods. Peleg and his collaborators completed tests on the properties of a gum called algenate and then turned the results over to industries to use for commercial purposes. Peleg remarked, "It was truly cooperative research. As far as I’m concerned, it was an enjoyable experience and a productive project."

Professor Robert Langer of MIT received a grant to study the usefulness of drug implants in controlling the release of drugs into the systems of fish. These implants can help the growth of fish, prevent infection or make a group of fish breed at the same time. While Langer knew how to control releases, his Israeli partner was an expert on fish farming. Langer described his Israeli colleague as, "Hard-working, bright and able to get things done."

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

The United States-Israel Educational Foundation (USIEF) and Brandeis University offer a joint grant to a postdoctoral scholar in the field of women's studies who is about to begin a program of research at the Women's Studies Research Center of the University. The program grant provides $20,000 in partial support of the recipient's first year of activity at Brandeis.

Sister Cities:

City of Boston Jerusalem

City of Newton City of Mazkeret­Batya

UJA Partnership 2000 Communities:

Boston Haifa

New Bedford Afula-Ta'anach-Gilboa

Springfield Afula-Ta'anach-Gilboa

Worcester Afula-Ta'anach-Gilboa

Hillel Campus Profiles

State Contacts

Kenneth E. Shostack
Manager, Eastern Region
BIRD Foundation
P.O. Box 2005
Brookline, MA 02146-0017
Tel. 617-731-1400
Fax. 617-731-1403
Email. kens@birdf.com

CAMERA
P.O. Box 428
Boston, MA 02258

Combined Jewish Philanthropies of Greater Boston
126 High St.
Boston, MA 02110
Tel. 617-457-8500

Israeli Consulate
20 Park Plaza, Suite 1020
Boston, MA 02116
Tel. 617-535-0200
Fax. 617-535-0255
Email. information@boston.mfa.gov.il
Web. www.israelemb.org/boston

JCRC of Greater Boston
126 High St.
Boston, MA 02110
Tel. 617-457-8600
Fax. 617-988-6255

Jewish Federation Of the Berkshires
196 South Street
Pittsfield, MA 01201
Tel. 413-442-4360

Jewish Federation Cape Cod Community
396 Main St
Hyannis, MA 02601-3900
Tel. 508-778-5589

Jewish Federation Greater New Bedford
467 Hawthorn St.
North Dartmouth, MA 02747-3714
Tel. 508-997-7471

Jewish Federation Greater Springfield
1160 Dickinson St.
Springfield, MA 01108-3122
Tel. 413-737-4313

Jewish Federation of Merrimack Valley
805 Turnpike St.
North Andover, MA 01845-6122
Tel. 508-688-0466

Jewish Federation Of North Shore
4 Community Rd.
Marblehead, MA 01945-2766
Tel. 617-598-1810

Jewish Federation Of Worcester
633 Salisbury St.
Worcester, MA 01609-1120
Tel. 508-756-7675

Leominster Jewish Community Council
268 Washington St.
Leominister, MA 01453
Tel. 617-534-6121

Massachusetts-Israel Exchange
Massachusetts Trade Office
Binyanei Haooma, #201
Jerusalem, Israel
Tel. 2-625-1194
Fax. 2-224-4578

David Vita, Director
Elaine Mussan Levi, Co-Director
Massachusetts Trade Office/Massport Trade Office
c/o MAKWA Ltd
Jerusalem International Convention Center, P.O. Box 6001
Jerusalem, Israel 91060
Tel. 2­625­1194
Fax. 2­624­4578
Email: vita@actcom.co.il
Web: http://www.makwa.com/mass/

New England-Israel Chamber of Commerce
Suite 3000 West One, 212 Northern Ave.
Boston, MA 02110
Tel. 617-753-7373
Fax. 617-753-7350
Email. neicc@israeltrade.com

Office of International Trade
100 Cambridge St., #902
Boston, MA 02202

Yiddish Book Center
48 Woodbridge St.
South Hadley, MA 01075
Tel. 413-535-1303
Fax. 413-535-1007
Email. nybcGU@hamp.hampshire.edu