Cooperation Between Israel
and the State of New Jersey

Binational foundation grants shared by New Jersey institutions:

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

Agreements with Israel

In 1989, the New Jersey-Israel Commission was created to promote trade, research and product development and exchanges in medicine, electronics and agriculture. Gov. Jim Florio expanded this agreement to include the promotion of tourism during his 1992 trip to 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, including New Jersey, have cooperative agreements with Israel.

In 2007 New Jersey exported almost $912 million worth of manufacturing goods to Israel. The total value of exports since 1996 is over $8 billion. In addition, New Jersey companies received $70,756,831 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 New Jersey's 9th 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 New Jersey.

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 Englewood.

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 New Jersey is limited only by the imagination.

New Jersey 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 700 New Jersey companies have discovered the benefits of doing business in Israel, including American Gas and Chemicals, Ace Locksmith, Johnson and Johnson and Hewlett Packard.

American Gas and Chemicals has been doing business with Israel for more than 10 years. The company supplies private companies in Israel with oxygen leak detectors used in aircraft. American Gas and Chemicals also buys products from Israel used in leak testing. These leak detectors are primarily used to protect people and facilities. Thanks to inquiries made via the company’s web site, more business is being generated than 10 years ago. “The Israeli market is a market that we should explore more,” says Jerry Anderson, President of American Gas & Chemicals. “We should also import more because there are a lot of products in Israel that we don’t take advantage of.” Anderson added, “Israel has been very easy to deal with, more so than other countries where English isn’t as widely used. That’s certainly an advantage.”

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. BIRD funds projects in 33 states and the District of Columbia.

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. Many New Jersey companies, including Princeton Video International, IDT Corp., Bogen Communications, Telenex Corporation and Universal Sonics, have taken advantage of this opportunity to reduce the risk of new ventures and tap into the deep pool of Israeli talent through the BIRD program. Companies in New Jersey have shared over $4 million worth of BIRD grants with Israeli firms since the program started.

Bogen Communications created a call interceptor with Artuv Communications and Software. Bogen was referred to Artuv through another Israeli company they did business with and the collaboration has been extremely successful. The product, now on the market, gives the user the option to store a message or has the ability to bypass the unit by hitting any digit on the keypad. The call interceptor also gives the user the option to record both a day and a night message that can be used, for example, during the work day or after hours. The system catches a call as soon as it is entered, plays the greeting and allows users to reach other lines by punching in the extension. “All in all the collaboration worked out pretty good,” said John Veneziali, an application engineer at Bogen. “Artuv worked mainly on the software while Bogen tackled the hardware issues. If we found a bug, we would go to Artuv for feedback. Overall, this was very successful,” added Veneziali.

Telenex Corporation also had a very successful collaboration with TTI of Israel. Together they produced what is called an SS7 Surveillance System. Prior to the grant, both companies had products that were not marketable by themselves. TTI had a network management server application and Telenex had the hardware that physically connected to the telephone. BIRD sponsored the production of the API Programming Interface that allowed both products to interact with each other. The result, the SS7 Surveillance System, which determines if the line being called is busy or answered. In addition, it allows the phone company to determine fraud, keep call data records, perform diagnostics and control billing. “The product lends itself to any of these applications depending on what the customer wants,” said Dan Guzik, director of the 7-View Product.

This product, which has been on the market for the past three to four years, is sold to telephone companies throughout the world. The collaboration “worked fantastic and is still working. We are further developing the product, enhancing it and creating new applications,” Guzik added. “[The collaboration] has been a very positive venture and rather unique. We had no contract together but worked as a team. I haven’t seen two U.S. companies do that to be honest with you.”

Two BIRD-sponsored products were combined to create a third stand-alone medical unit. ITS Sharplan Lasers, a distribution company for medical lasers, teamed up with I Sight Ltd., an Israeli manufacturer of digital video cameras, to create the I Sight™ medical video camera. This video camera is used mainly with endoscopes and laparoscopes in gynecology and urology.

Universal Sonics Corporation, an internationally recognized expert in the ultrasound market, saw the need for a high performance, affordable product for the laparoscopic/minimal invasive surgery (MIS) market. Through a BIRD grant they developed a platform for a family of low cost, high performance ultrasound scanners. The company was also seeking systems that could be mounted on this platform and teamed up with Laser Industries, a market leader in CO₂ laser surgery systems and the parent company of U.S. subsidiary Sharplan Lasers. The result of the collaboration was the combination of the Universal Sonics Platform and the I Sight™ Medical Video Camera, which resulted in the development of the U Sight System™.

With all of these products mounted onto one big video cart, a doctor can do an ultrasound and ultrasonography at the same time. According to Tom Paulino, business applications manager for Sharplan, the item is sold out of Israel to the U.S. and worldwide. “There is a very competitive market for this product with major companies that work heavily in ultrasound. It is difficult to get a piece of the pie in this market. While a few have sold in the U.S., sales in the Far East and South America have been much better,” he said.

Telcordia Technologies Inc., of Piscataway, NJ, and Uniper, an Israeli-based company, received approval of a BIRD grant for cutting edge telecommunications development. The $1 million grant was awarded to Telcordia and Uniper for the design of intelligent, policy-based hand-off (switching) between communications networks based on different technologies, while maintaining session continuity.

“The partnership the New Jersey-Israel Commission has forged with the BIRD Foundation has proved extremely beneficial to both New Jersey and Israeli companies,” said Commerce Secretary Virginia S. Bauer.

“Telcordia is pleased to be working with Uniper to collaborate for the betterment of technology, benefiting not just the U.S. and Israel, but the global technology community as a whole,” said Dr. Adam Drobot, Telcordia CTO & President, Advanced Technology Solutions Group.

Eitan Yudilevich, Executive Director of the BIRD Foundation, agreed. “The State of New Jersey is home to many companies that are industry leaders, Telcordia being one of them. Partnering these companies with Israeli cutting edge companies leads to the potential for great technological and commercial success.”

Scientific Innovations

New Jersey 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. 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. Rutgers, Princeton, Bell Telephone Labs and NEC Research Institute have shared more than $4.5 million with counterparts in Israel through grants awarded by BSF since 1987.

Gene Grossman is a professor of economics in the Woodrow Wilson School at Princeton University. He has received several grants to collaborate with Professor Yohanan Helpman of Tel Aviv University on trade issue and political economy. Recently, they have studied two different topics — the relationship between trade and growth, and the political economy of trade policy. Specifically, they are studying the links between special interest groups, mainly industry groups, and trade policy outcomes. Their goal is to design better rules for the international trade system. A book has been written on trade and growth and one is currently being written on the political economy of trade policy. Grossman said, “I’ve been working with my Israeli collaborator for 10 or 11 years and we have received many other grants that didn’t provide for travel costs. The BSF grant was a way to fund travel so we could visit each other. It has been a very positive experience.”

Frederic Cosandey specializes in ceramic and material engineering at Rutgers. Along with his Israeli collaborator Yigal Komen of the Technion, he is studying materials used for gas sensors, such as the semiconductor material used for detecting pollution and other toxic gases. So far, the researchers have presented their findings at conferences and have prepared papers. Although this is basic scientific research, practical applications might include environmental control devices and emission control for cars.

Cosandey already knew his Israeli colleague and shared an interest in developing a research program. “BSF requires the two investigators to meet face to face at least once a year to see each other’s labs and see how things progress. I’ve been to Israel twice and he [Komen] has been to New Jersey. This is not only a successful mechanism for having interaction between different countries, but also a mechanism for interaction to happen,” said Cosandey.

Princeton’s Shivaji Sondhi, and the University of Haifa’s Efrat Shimshoni, are studying the theory of condensed matter, in particular, the quantum hole effect. The two scientists are looking at the nonlinear transport of electrons that live in a plane as opposed to a 3-dimensional area. “Fascinating things happen to 2-dimension electron gases when put in an electronic field,” said Sondhi. Although this project is related to semiconductor technology, practical applications are far down the line. The most technological advancement that could result using information gained from this grant would be in making the smallest possible transistor using only one electron.

Noamie Benczer-Koller of Rutgers and Michael Hass of the Weizmann Institute are doing research on the forces binding nucleons in the atomic nucleus. This work has possible long-term applications in the development of nuclear technology. Benczer-Koller said the collaboration has been “very productive and resulted in good scientific interactions. BSF is an excellent program for both sides. It is a very good influence on young Americans who are working with Israelis and vice versa.”

Although most of the research being done by BSF grantees is just basic science, much of the work will one day have very practical applications. This is the case for research being done by Chung Law, a professor of mechanical and aerospace engineering at Princeton. He and his Israeli counterpart are studying combustion in terms of flame structure and dynamics. Ultimately, this research could have applications related to improved combustion in internal combustion engines.

One BSF project that did should result in a commercial product was conducted by Lisa Klein, of the Ceramics Department at Rutgers. Along with David Avnir of Hebrew University, she created new materials for use as sensors. An example of this is a small sensor that can be inserted into a blood sample to measure its oxygen level. Although this particular device is still in the development stage, Avnir has several others that are in production. “This [device] is just one more in a list of things he’s working on,” said Klein. Although the Israeli side of this collaboration is working on the commercialization of the product, New Jersey will also benefit. Hebrew University has an agreement with Johnson and Johnson that allows the company to use some of their technology in the future. One of the most positive aspects of the BSF program is that it provides for travel between the U.S. 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

Two professors at Rutgers are both working on different aspects of food preservation. These are just 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. New Jersey institutions have shared grants worth more than $1.5 million since 1987.

Thomas Montville, Chair of the Department of Food Science at Rutgers, and Ronny Shapira of Hebrew University, are researching natural preservatives that might make foods safer from microbial pathogens. They are studying naturally occurring protein found in fermenting foods to gain a better understanding of how they work so they can be used more intelligently, for example to extend the shelf life of refrigerated foods. The results from this BARD grant provided a basic scientific knowledge that has become the foundation for further research for both the New Jersey and Israeli labs.

Montville said what attracted him to the BARD program was the “interest and capability of my Israeli colleagues. He [Shapira] had genetic expertise and molecular modeling facilities that we didn’t have and we had biochemical facilities that he didn’t have. It was a mutually advantageous relationship. I thought the collaboration was very useful on several levels. He came to my lab and worked with my students and I was also able to go to Israel to spend time with his students. For the students at Rutgers, these visits made them more aware of the international arena of scientists and of other international facilities. It helps foster the growth of the scientific community.”

The benefits of these binational relationships often transcend science. “On a personal level,” Montville added, “no one can understand the politics of the Middle East without having been there. On my visit I had one day to spend in Jerusalem and it made a world of a difference. The BARD program builds ties.”

Rutgers entomologist Randy Gaugler has also had a very positive experience with the BARD program. He and Mark Glazer of the Volcani Institute are developing biological insecticides as an alternative to chemical ones. Chemical insecticides have a longer shelf life, but also have numerous harmful side-effects. For example, they are often toxic and contaminate groundwater, kill wildlife and create residue problems. These insecticides also create the problem of chemical trespassing, currently a hot topic in New Jersey. This grant provides for mainly “exploratory research. It will probably be three years before we know if our research is successful,” said Gaugler. “Research money is a scarce resource and any scientist is always looking for new venues. Nowadays to be a scientist also means to be an entrepreneur to fund your lab. My lab probably costs several hundred thousand dollars a year. BARD is very competitive and a good venue. It has been very supportive of my research.”

The joint American-Israeli team of Professor Reshef Tenne at the Weizmann Institute of Science in Rehovot, David Srolovitz of Princeton University, Lev Repoport of Holon Academic Institute of Technology and Samule Safran of the Weizmann Institute of Science have been recognized for their achievement in nanotechnology. These particles are especially useful because they are not susceptible to extreme temperatures of heat and cold. As well as providing a better lubricant for cars, instead of the old method of lubrication by oil, this new nanotechnology can be used for trains, factories, competitive sports equipment and military tanks. In the future, Tenne has already started to apply the use of nanoparticles to the microelectronics and hopes to apply it in the future to the semiconductor industry.

New Jersey also benefits from research done outside the state. For example, certain fruits and vegetables are very profitable in New Jersey, such as apricots and peaches. Once they are picked and sorted they often face the problem of over ripening and decay. During harvest season, overloaded processing plants need to store fresh apricots and peaches without losing their firmness, fresh taste and attractive appearance. Thanks to BARD grantees, this is now possible. Researchers have found that modified atmospheres containing 5 percent CO₂ and 2 percent oxygen help preserve color, taste and texture for subsequent canning.

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

In 1998, New Jersey made plans to create a not-for-profit corporation to support the development of Israeli companies hoping to establish operations in the United States. The New Jersey-Israel Technology Marketing Corporation (NJITMC) will provide opportunities for emerging high-tech companies to achieve strategic marketing and investment relationships in the United States. The NJITMC will also provide services to non-technology companies that demonstrate potential business opportunities in New Jersey.

Natan Linial and Gil Kalai of Hebrew University 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 ensure that computerized elections are fair and accurate. Using a mathematical theory called influence theory, they constructed computerized models, assigning each method of government a certain probability of vote outcome. Researchers of the BSF project may be able to predict election results that could have surprising results.

Sister City Agreements:

City of Cherry Hill City of Ramat Gan

UJA Partnership 2000 Communities:

Atlantic & Cape May Counties Arad-Tamar

Central New Jersey Arad-Tamar

Clifton Passaic Arad-Tamar

Cumberland County Arad-Tamar

Middlesex County Arad-Tamar

Monmouth County Arad-Tamar

North Jersey Arad-Tamar

Ocean County Arad-Tamar

Somerset County Arad-Tamar

Southern New Jersey Arad-Tamar

United Jewish Federation of Princeton-Mercer Bucks Arad-Tamar

Metro-West Ofakim-Merchavim

Bergen County Ofakim-Merchavim

Hillel Campus Profiles

State Contacts

The America-Israel Chamber of Commerce
Central Atlantic Region
200 South Broad St., #700
Philadelphia, PA 19102
Tel. 215-790-3722
Fax. 215-790-3600
Email. aicc@gpcc.com

Jewish Federation of Atlantic & Cape May Counties
3393 Bargaintown Rd., P.O. Box 617
Atlantic & Cape May Cnty, NJ 08232-0617
Tel. 609-653-3030

Jewish Federation Central New Jersey
1391 Martine Avenue
Scotch Plains, NJ 07076
Tel. 908-889-5335
Fax.908-889-5370
Web. http://www.jfedcnj.org/

Jewish Federation of Cumberland County
629 Wood St., #204
Vineland, NJ 08360
Tel. 609-696-4445

Jewish Federation Greater Clifton
199 Scoles Ave
Clifton, NJ 07012-1125
Tel. 201-777-7031

Jewish Federation Greater Monmouth
100 Grant Ave
Deal, NJ 07723-1506
Tel. 908-531-6200

Jewish Federation Greater Middlesex
100 Metroplex Dr #-101
Edison, NJ 08817-2684
Tel. 908-985-1234

Jewish Federation Greater Middlesex
230 Old Brige Turnpike
South River, NJ 08882-2000
Tel. 908-432-7711
Web. http://www.jfgmc.org/

Jewish Federation of Greater Monmouth County
100 Grant Ave.
Deal, NJ 07723-0210
Tel. 732-531-6200
Fax. 732-531-9518
Email. info@jewishmonmouth.org
Web. http://www.jewishmonmouth.org

Jewish Federation of Mercer County
999 Lower Ferry Rd.
Trenton, NJ 08628
Tel. 609-883-5000

Jewish Federation of MetroWest
901 Route 10
Whippany, NJ 07981
Tel. 973-929.3000
Fax. 973-884.7361
Web. http://www.ujfmetrowest.org/

UJA Federation of Northern New Jersey
111 Kinderkamack Rd.
River Edge, NJ 07661
Tel. (201) 488-6800
Web ww.ujannj.org

Jewish Federation of Ocean County
301 Madison Ave.
Lakewood, NJ 08701
Tel. 908-363-0530

Jewish Federation of Princeton
15 Roszel Rd.
Princeton, NJ 08540
Tel. 609-243-9440
Web. http://www.ujfpmb.org/

Jewish Federation Somerset
1011 Rt. 22 West, P.O. Box 6455
Bridgewater, NJ 08807
Tel. 908-725-2231

Jewish Federation Somerset
Talamini Rd
Bridgewater, NJ 08807
Tel. 908-725-5850

Jewish Federation South New Jersey
1401 Springdale Road
Cherry Hill, NJ 08003
Tel. 856-751-9500

Jewish Federation South New Jersey
3051 Chapel Ave W
Cherry Hill, NJ 08002-1530
Tel. 609-667-6826

Jewish Federation of Southern New Jersey
2393 W. Marlton Pike
Cherry Hill, NJ 08002
Tel. 609-665-6100
Web. http://www.jfedcnj.org/

Dr. Michael Reiner, Director
William Geller, Associate Director
New Jersey Department of Commerce & Economic Development
Israel Office
3 Tel Hai St.
Raanana, Israel 43405
Tel. 9­748­0883
Fax. 9­760-2245
Email: mrpereg@hotmail.com

Andrea Yonah
Executive Director
New Jersey-Israel Commission
20 West State St., CN 820
Trenton, NJ 08625-0820
Tel. 609-633-8600
Fax. 609-633-3675
Email. andrea.yonah@commerce.state.nj.us