Cooperation Between Israel
and the State of Minnesota

Binational foundation grants shared by Minnesota institutions:

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

ADC Magnetic Controls Co.
American Paging, Inc.
AVR Sonovation, Inc.
Department of Veterans Affairs
Guidant Corp.
Mayo Foundation
Network Communication Corp.
PALS Inc.
Square D
TRO Learning Inc.
University of Minnesota
University of Minnesota Medical School
Uro-Care Laboratory
Wicat Systems Inc.

Agreements with Israel

In 1987, Gov. Rudy Perpich established the Minnesota-Israel Exchange (MNIX) to foster cooperation and promote trade, investment, science and industry.

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.

The two nations cooperate on a wide variety of projects that reinforce our common beliefs. These SHARED VALUE INITIATIVES cover everything from science to education to 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, including Minnesota. In 1988, the Minnesota-Israel Exchange (MNIX) was created to promote trade, investment, science and industry.

In 2007, Minnesota exported over $125 million worth of manufacturing goods to Israel, bringing the total since 1996 to more than $692 million. In addition, Minnesota companies received $3,900,241 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 Minnesota's 25th 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 Minnesota.

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 Gaylord and Minneapolis.

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 Minnesota is limited only by the imagination.

Minnesota 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 Minnesota companies have discovered the benefits of doing business in Israel, including 3M, American Paging, Radisson Hotels Worldwide, Cargill and National Car Rental.

ADC Telecommunications has been selling telecommunication products to Israel for more than a decade. The company provides fiber optic transmission equipment for Israeli cable television and the national phone company.

“Israel is a very good market for us,” says Jory Steinman, Director of Global Distribution Sales. “We do well in small markets that want the highest quality and latest technology. And that's what the Israelis want." Steinman said Israel is also one of the most competitive markets in the world, but an easy place to do business.

Tim Walsh, Vice President of the Edina-based Plato International division of TRO, has had a “very positive experience” selling educational software to Israel. The company has the largest library of educational courses for schools, and has been working with Israeli software developers for about four years. “Israel has very talented people, and the quality of the companies attracted us to Israel,” says Walsh.

Plato's Israeli partners have developed good products for its clients, according to Walsh. “With the possible exception of the United States, Israel is probably the leading software developer in the world in certain areas.”

Many Minnesota companies do business with Israel through the U.S. Government, which has an extensive program for buying and selling military equipment. Napco International, for example, sells components for military vehicles and buys Israeli electronics. The company is also involved in joint ventures with Israeli companies for projects in third countries. “Trade benefits both countries,” says Vice President of Marketing Shimon Pelleg.

One good way to break into the Israeli market is through a joint venture. 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.

Eight Minnesota companies have shared BIRD grants worth nearly $2 million with Israeli companies. American Paging, for example, has teamed with Nexus of Israel on two BIRD projects to develop, manufacture and market wireless personal communications systems.

The two-way paging system the companies have developed will allow a person to use their pager to respond directly to a message rather than having to make a phone call to reach the contact, according to Manager of Business Development Stuart Shwiff.

The pager can also be used to initiate communications, for example, to call the office. The system is less expensive and does not have to be charged as often as a cellular phone.

Shwiff says his company benefitted from Nexus' expertise. "Nexus is at the cutting edge of technology in Israel," he said. The product is still in the pre-commercial phase in the United States, but systems have already been sold in Australia and Russia.

The Minneapolis-based American-Israel Chamber of Commerce can provide additional information about BIRD and other business opportunities in Israel.

Scientific Innovations

The University of Minnesota has shared with counterparts in Israel nearly $1.1 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. Yale and the University of Connecticut are among the grant recipients.

H. Ted Davis is interested in structures of colloidal solutions. This has practical applications for a wide variety of consumer products, from toothpaste to soap to lotions and creams. By gaining a better understanding of the properties of these solutions, Davis said, it is possible to make improvements in these products.

This is the third BSF grant Davis has shared with one of his former Ph.D. students. He has continued to work with the Israeli scientist because he is "a rich intellect" and "better at electron microscopy than I am." The researchers have discovered new structures and how they can be manipulated. They also have pioneered techniques in freezing solutions so they can be examined under the microscope. "No other person in the world has my colleague's expertise in this area," Davis said.

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 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 Columbia. In 2005, 28 projects were funded at 31 U.S. institutions. The University of Minnesota has shared grants worth more than $2.3 million since 1987.

Wesley Hackett is interested in learning why some tree species can be propagated and others cannot. Ideally, he would like to clone species that have more desirable characteristics. For example, it would be beneficial to capture the characteristic of a tree that produces better fruit.

"The Israelis are good scientists," Hackett said. "They are aggressive in tackling practical problems, especially related to horticultural products." Hackett also benefits from the intellectual interaction, but the bottom line is the research could not be done without the money BARD provides.

Israel is well-known for its cooperative farms, but economic reversals in recent years led critics to question whether they could compete with investor-owned farms. Economist Claudia Parliament and her Israeli colleague compared American and Israeli structures and found the latter worked quite well. In fact, Parliament found "the Israeli cooperatives performed as well or better than investor-owned farms." The collaboration was a good match of abilities, she said, because the Israeli had a strong background in finance and understood the political influences on the Israeli coops. Parliament's knowledge of coops and training in econometrics complemented his skills.

Minnesota geese lay eggs for only about five months each year. Another BARD project at the University found that artificial lighting could increase the length of the laying season, and stimulate geese to lay eggs more frequently.

Another project involving Minnesota BARD grantees relates to screening barley varieties to find cultivars resistant to brown leaf rust and other cereal diseases.

BARD research done outside the state also benefits Minnesota. For example, non-virulent fungi were found to promote plant growth and increase crop yields of wheat. Minnesota potato farmers can benefit from a test developed to detect potato leaf-roll virus. BARD grantees also found that inert fats in the diet of dairy cattle can boost milk fat and protein quality. Yet another project developed a new method to store wheat that reduces damage from insects.

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 Minneapolis/St. Paul City of Hadera

UJA Partnership 2000 Communities:

Minneapolis/St. Paul Kinneret Cluster - Sovev Kinneret

Hillel Campus Profiles

State Contacts

Matthew Heilicher, Executive Director
American-Israel Chamber of Commerce
13100 Wayzata Blvd., #130
Minneapolis, MN 55305
Tel. 612-593-8666
Fax. 612-593-8668
Email. mheilicher@aiccmn.org
Web. http://www.aiccmn.org

Sherwin Pomerantz,  Director
American -Israel Chamber of Commerce
c/o Atid EDI Ltd
Bldg. 2, Har Hotzvim, P.O. Box 45005
Jerusalem
Israel 91450
Tel. 2­571­0199
Fax. 2­571­0713
Email. atidedi@netvision.net.il

JCRC of Minnesota and the Dakotas
12 North 12th St., #480
Minneapolis, MN 55403
Tel. 612-338-7816
Fax. 612-349-6569
Email.info@minndakjcrc.org
Web: http://www.minndakjcrc.org

Jewish Federation
1602 E 2nd St
Duluth, MN 55812-1656
Tel. 218-724-8857

Minneapolis Federation for Jewish Service
5901 South Cedar Lake Rd.
Minneapolis, MN 55416
Tel. 612-593-2600

Minnesota Dept. of Trade & Economic Development
1000 Minnesota World Trade Center, 30 East 7th St.
St. Paul, MN 55101-4902
Tel. 612-297-4222
Fax. 612-296-3555

United Jewish Fund & Council
790 South Cleveland, #201
St. Paul, MN 55116
Tel. 612-690-1707