Cooperation Between Israel
and the State of Michigan

Binational foundation grants shared by Michigan institutions:

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

Alma College
Amigo Mobility International, Inc.
Computer Methods Corp.
Gelman Sciences Inc.
Henry Ford Hospital
Michigan State University
Oakland University
TESCO Group Companies
University of Michigan
University of Michigan Medical School
USDA Avian Disease & Oncology Lab
USDA Fruit & Vegetable Harvesting Lab
USDA Regional Poultry Lab
Utilase Inc.
Wayne State University

Agreements with Israel

The Michigan-Israel Technology Venture was established in 1988 to foster exchanges of information and technology, and an Economic Development Cooperative Agreement was signed the same year to promote trade and investment.

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.

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, including Michigan.

In the late 1980's, the Michigan-Israel Technology Venture was created to foster exchanges of information and technology, and an Economic Development Cooperative Agreement was initialed to promote trade and investment.

Since 1996, Michigan exported more than $800 million worth of manufacturing goods to Israel. In addition, Michigan companies received $7,269,507 in 2006 for U.S. government-funded military contracts with Israel through the Foreign Military Financing (FMF) program (U.S. military assistance to Israel). In 2007, exports totaled almost $75 million. Israel now ranks as Michigan's 35th 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 Michigan.

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 Detroit and Grand Rapids.

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 Michigan is limited only by the imagination.

Michigan 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.

Roughly 100 Michigan companies have discovered the benefits of doing business in Israel, including General Motors, Chrysler, Aeroquip and Gelman Sciences.

"General Motors does considerable business with Israel and expects to do more," according to J. David Hughes from the company's International Communications department. The company sells passenger cars and trucks as well as military vehicles. The Israeli military buys products from GM's Hughes Electronics subsidiary. GM also buys components and tools from Israeli suppliers.

In 1995, GM's Electronic Data Systems subsidiary announced a joint venture with Kardan Technologies in the systems integration area. Peter Zaugg, chairman of EDS Israel said, "The Israeli marketplace will benefit from the presence of an IT [information technology] services supplier that combines EDS' global capabilities and expertise and Kardan's considerable knowledge of the market and business community."

The Israeli IT market is estimated by the company to be worth approximately $1.6 billion in 1995, with the software and services segment projected to grow at an annual rate of 11 percent over the next five years.

Hughes added that GM Executive Vice President Harry Pearce visited Israel, along with other top executives, "and that the direction is clearly toward expansion of our business relationship with the country through the rest of this decade."

Gelman Sciences has been doing business in Israel for close to 30 years, according to Bob Roszell, Director of Marketing Research. The company manufactures filtration products for laboratories. "Israel is a hotbed for innovative research," Roszell said, and the company is interested in new opportunities there.

Bernard Coyne, a manager for Beaver Precision Products, said his company has been doing business with Israel since 1987. “It's a selective market, the defense industry, but it's extremely pleasurable to do business there. The Israelis are honorable men, good negotiators and terribly cooperative. They go out of their way to expedite matters. They went out on a limb to help us financially by advance billings.” Coyne also found it easy to make agreements. Instead of going through committees that stall contracts, the Israelis can reach an agreement "over the telephone or with a handshake." With the possible exception of the Japanese, Coyne said the Israelis are the best payers he's ever had. “I'll do everything I can to continue doing business in Israel.”

Merlyn Gates, President of Abrams Instrument Corporation, has also found that Israeli clients do not waste his time. “When they need our products, they come to us. When the Israelis make an inquiry, you know they are going to buy. And they pay promptly.” Unlike many orders that get loaded down with ridiculous terms, the Israeli contracts are straightforward, he said. “Our relations have been very successful.”

Tzora Health Care Products, an Israeli manufacturer of power-assisted mobility devises, collaborated on a project with Amigo Mobility International, a U.S. manufacturer of carts and other mobility aids used by the handicapped worldwide. The companies jointly developed the Travel Mate-Scooter, an inexpensive, lightweight, foldable scooter for the handicapped that can be loaded into buses, trains, taxis or other transportation vehicles. The concept of the three-wheeled platform mobility aid was introduced by Amigo over 30 years ago and has since changed the lives of hundreds of thousands of physically impaired persons. However, previous products were heavy, and loading them on other vehicles necessitated their disassembly into several parts of manageable weight by a complicated, and inconvenient process. Thus, the Travel-Mate Scooter met a critical and universal need of handicapped individuals worldwide. Currently, Tzora produces the innovative scooter and Amigo provides marketing, sales and service.

Plasma Laser Technologies (PLT) Ltd., an Israeli developer of unique, advanced-technology solutions for welding and material treatment, is collaborating with DCT Utilase Systems, a leading American full service supplier of welding and assembly lines, automation and laser systems. The aim of the joint project is to develop hybrid Plasma Laser Welding (PLW), a method that will solve the problems encountered by the use of either conventional Laser Beam Welding (LBW) or Electric Arc Welding (EAW) separately. PLW technology is expected to improve laser welding travel speeds of aluminum and steel automotive products. The benefits of PLW have been demonstrated in various applications, such as tailored blanks welding, thick pipe welding, enclosure welding, etc. In each of these applications, the use of PLW has resulted in a higher price performance ratio of the total welding system, lower direct production cost and increased competitiveness of the product.

Joint ventures between Israeli and Michigan companies can obtain funding 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. BIRD funds projects in 33 states and the District in 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 more than $8 billion, tax revenues of more than $700 million in both countries and created an estimated 20,000 American jobs. Four Michigan companies have received BIRD grants.

The Detroit-based American-Israel Chamber of Commerce can provide additional information about BIRD and other business opportunities in Israel (810-661-1948).

Scientific Innovations

The University of Michigan (UM) and Michigan State University (MSU) are among the Michigan institutions that have shared with counterparts in Israel nearly $1.9 million 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.

UM's Anthony Francis and his colleague are involved in the spectroscopic study of semiconductors, which has potential applications for solar energy storage. "It was a very good collaboration," Francis said, adding that he benefitted from having access to some facilities and equipment the Technion had that his lab did not.

Another UM scientist, Will Pearson, is interested in techniques used to synthesize molecules. "The pharmaceutical industry is very interested in our techniques," he said, because it allows them to develop new drugs. The BSF grant allowed Pearson to work with someone whose work he had followed. "We are productive because we each know things the other doesn't," he explained. "We each provide a different perspective and expertise, so we make a pretty good team."

MSU's Lee McIntosh and his colleague are studying photosynthesis at the molecular level. By manipulating genes, they hope to obtain a better understanding of how herbicides affect photosynthesis. Ultimately, the research could be used to make herbicides more safe and effective. He said he benefitted from the collaboration because his Israeli colleague is a "superb geneticist."

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 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 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. Michigan institutions have shared grants worth more than $7.8 million since 1987.

UM molecular biologist Eran Pichersky and his colleague are examining nonfunctional proteins in chloroplasts. The research relates to the efficiency of photosynthesis, which affects plant growth rates and fruit growth. "In Israel, some plants don't photosynthesize at high temperature," Pichersky explained. "By changing the proteins, it will allow plants to grow in hotter climates." This could have particularly valuable applications for crops like tomatoes, he said.

MSU's Ken Sink is using cell fusion techniques to transfer genes in plants, with the aim of ultimately making them resistant to verticillium wilt, a fungus that affects eggplant worldwide. Sink says he has a good rapport with his Israeli colleagues, who are leaders in this field. This is Sink's third BARD grant.

Lyman Crittenden, of MSU and the U.S. Department of Agriculture, has had two BARD projects. The first studied disease in chickens caused by a retro virus. "We were trying to detect transmission of the virus from the mother to its offspring to reduce the infection rate. It turned out one line of chickens had a high rate of infection. By changing the line, we eliminated the virus."

Crittenden's second project involved identifying genes that control egg production and other important traits in chickens. This is an ongoing project that will ultimately benefit breeders.

Other projects involving Michigan researchers helped develop a test to detect tomato leaf curl virus, a new machine to harvest peppers, a damage and simulation detection system to predict and lower shipping losses of perishable fruits and a test to detect Mareks Disease Virus in the feather tips of chickens.

David Dilley, an MSU scientist who's been working with Israel for 30 years, said BARD grants are highly competitive, "so ideas have to be good, investigators excellent and projects of mutual benefit."

BARD research done outside the state also benefits Michigan. For example, the State's apple growers can benefit from a BARD project to preserve the fruit's crispness longer. Dairy farmers benefit from research to boost milk fat and protein quality in cows.

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

Sister City Agreements:

City of Oak Park City of Safed

UJA Partnership 2000 Communities:

Ann Arbor Central Galilee

Detroit Central Galilee

Flint Central Galilee

Grand Rapids Central Galilee

Hillel Campus Profiles

State Contacts

American-Israel Chamber of Commerce
30700 Telegraph, #1651
W. Bloomfield, MI 48088
Tel. 248-646-1948
Fax. 248-646-9332
Email. mhtraiso@defs2.ccmail.compuserve.com

Flint Jewish Federation
619 Wallenberg St.
Flint, MI 48502
Tel. 810-767-5922

JCC of Metropolitan Detorit
6735 Telegraph, #100
Bloomfield Hills, MI 48301
Tel. 810-642-5393
Fax. 810-642-6469

Rosalie Stein
Executive Director
Jewish Community Fund of Grand Rapids
4127 Embassy Dr. SE
Grand Rapids, MI 49546
Tel. 616-942-5553
Email. jcfgr@iserv.net

Jewish Federation
6735 Telegraph Rd.
Bloomfield Hills, MI 48301-3141
Tel. 810-642-4260

Jewish Federation Washtenaw County
2939 Birch Hollow Dr
Ann Arbor, MI 48108-2301
Tel. 313-677-0100