Cooperation Between Israel
and the State of Virginia


Exports to Israel in 2008: $121,180,676
Percentage change from 2007: 37.33
Israel's rank as trade partner: 32
Total exports since 1991: $1,922,909,541
Military Contracts with Israel in 2006 Using Foreign Military Financing: $13,424,360
Jewish Population in 2001: 66,000
Jewish Percentage of Total Population: 0.9

Binational foundation grants shared by Virginia institutions:

BARD (1987-2005): $3,270,000
BSF (1987-2005): $644,675
BIRD (1980-2005): $1,989,091

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

America Online Inc.
Bosch Telecom Inc.
CACI International
George Mason
GTE Spacenet
Kollmorgen Motion Technology Group
Naval Surface Weapons Center
Perceptronics
Pulse Communications Inc.
University of Virginia
University of Virginia Medical School
Virginia Commonwealth
Virginia State
Virginia Tech
William & Mary

Agreements with Israel

The Virginia Israel Commission was established in 1986 to investigate the cultural, educational and economic development opportunities between the two states. In 1988 Gov. Gerald Baliles signed a new agreement with Israel, but the commission's activities waned. In 1995, Gov. George Allen created a new Virginia-Israel Partnership to focus on promoting trade, art, education and general government.

In September 2008, Governor Timothy M. Kaine of Virginia and Ambassador of Israel Sallai Meridor signed an agreement to strengthen bilateral cooperation between the Commonwealth of Virginia and the State of Israel on private sector industrial research and development. Under the agreement, an approved joint research and development project will receive financial support from the governments of Virginia and Israel, which will significantly reduce the costs that Virginian and Israeli companies would normally have to incur if they were to conduct the project independently.

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 are realizing significant benefits by increasing trade with Israel. No fewer than 23 states have cooperative agreements with Israel.

Virginia was one of the first states to establish the framework for such an agreement under then Gov. Charles Robb. The Virginia-Israel Commission was then created by Gov. Gerald Baliles. In 1996, Gov. George Allen revived the partnership and led a trade mission to Israel.

Even before the mission, Virginia exports to Israel were flourishing. In 2007, the total was about $88.2 million. The total value of exports since 1996 exceeds $1.3 billion. In addition, Virginia companies received $13,424,360 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 is now the State's 33rd largest 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 Virginia.

For example, Israel has developed a number of pioneering education programs. One, the Home Instruction Program for Preschool Youngsters (HIPPY), has been praised by President Clinton as “the best preschool program on earth” and replicated throughout the country.

A range of other exciting approaches to 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 Virginia is limited only by the imagination.

Virginia Firms Profit From Business With Israel

Because of Israel's unique status as the only country with free trade agreements with both the United States and the European Community, it can act as a bridge for international trade between America 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 and Intel have found that it is profitable to do business in Israel.

Indeed, more than 150 Virginia companies have discovered the benefits of doing business in Israel, including Philip Morris, Rubbermaid and Hamilton Beach.

Other companies have entered into joint research and development projects with the help of grants from the Binational Industrial Research and Development Foundation (BIRD). The United States and Israel established BIRD in 1977 to fund 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. 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. Products developed from these ventures have netted sales of more than $5 billion in each country, tax revenues of more than $700 million in both countries and created an estimated 20,000 American jobs.

Since its inception, BIRD has funded more than 740 joint high-tech R&D projects through conditional grants totaling more than $210 million. Seven Virginia companies — America Online, Bosch Telecom, GTE Spacenet, CACI International, Kollmorgen Motion Technology Group, Perceptronics and Pulse Communications — have shared BIRD grants with Israeli firms worth nearly $2 million.

Glenn Sacra, President of GTE Spacenet International Corp., wrote in the 1991 BIRD annual report: “GTE Corporation, a $21.4 billion multinational company, is among the world's telecommunications giants. GTE Spacenet, a subsidiary...with satellite-based telecommunications experience in more than 50 countries, accepted a unique opportunity with Gilat Communications Systems Ltd. in 1988-89 to commence joint development of a new class of satellite communications systems.”

The BIRD Foundation's encouragement and support were vitally important in bringing GTE Spacenet and Gilat together. Peter Nielson, from GTE Spacenet's marketing group, noted that large companies are sometimes reluctant to work with smaller companies, but BIRD reduces the risk and in this case helped promote a very good investment.

The companies developed a revolutionary data communications network that is ideal for high volume data transactions such as check and credit card authorization, reservation booking, inventory control and ATM transactions. The project was so successful, BIRD awarded the companies additional support to develop a new generation of ultra-small aperture terminals.

In addition to the BIRD projects, GTE Spacenet does a great deal of business in Israel related to earth stations and telecommunications.

Medical Electronic Systems (MES) Ltd., an Israeli manufacturer of medical electronics focusing on male infertility, has teamed with Progeny Systems LLC, a U.S. veterinary instrument company specializing in the application of high technology information solutions to agriculture. The two companies are jointly developing a next-generation system for sperm analysis both for the human fertility market as well as for the animal food production market. The goal of the project is for this new analytical approach to set a new standard in the human and veterinary markets. The innovative Sperm Quality Analyzer will offer a more reliable, simple-to-use and inexpensive solution than exists today for evaluation of sperm quality. In addition, the application of new hardware and software techniques will increase market penetration of instruments and disposable kits in both the human and veterinary markets.

Scientific Innovations

Researchers from Virginia are making scientific breakthroughs and developing cutting-edge technologies in joint projects with Israeli scientists supported by the Binational Science Foundation. 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. Virginia institutions have shared with counterparts in Israel more than $644,000 in grants awarded by BSF since 1987. Those that have benefitted from the program include the University of Virginia, University of Virginia Medical School, Virginia Commonwealth, Virginia State, Virginia Tech and William & Mary.

The world's food supply is limited by the available fertilizer, according to Prof. Dennis Dean, a microbiologist at Virginia Tech. Working under a BSF grant, he is trying to understand the enzyme involved in the mechanism by which nitrogen is converted to ammonia. The ultimate goal is to improve the biological process so that fertilizer can be produced more cheaply and without the use of fossil fuels. "If the fertilizer can be controlled so that more goes directly to the plant, it helps reduce pollution," he says.

Dean is "delighted" with the collaboration, which gives him access to new information about proteins. "The Weizmann Institute in Rehovot has developed a technique for looking at proteins that Virginia does not have," he said.

Gary Long is also a professor at Tech who is working with scientists at Weizmann. He is interested in understanding how heavy metals interact with the environment and, more specifically, groundwater. In Virginia, a significant amount of water comes from wells, he says, and it is important to filter out particulates. Israel has developed a sampling device that collects water and colloidal materials and allows environmental engineers to get a better look at metal concentrations in water. The tool is especially useful in locating industrial spills in a scientific and cost-effective manner.

According to Long, the Israelis were interested in measuring the water quality of the coastal aquifer around Herzliya, which could be vital to the nation's security if the peace process alters their access to other sources. Herzliya, Long adds, is similar to the West Coast, particularly Los Angeles, which relies on aqueducts for its water. "It is therefore important to know about contamination of underground water sources," he says.

Long adds that he has excellent relations with his collaborators and considers Weizmann's scientists "the best in the world." He also believes the grant was important. "BSF allowed us to verify our research; otherwise, it would have been another unproven technology."

Less tangible benefits come in fields like mathematics. Prof. Charles Johnson of William & Mary believes BSF plays an important role in supporting "extraordinarily high quality" math projects and helping to insure a flow of top mathematicians to the university. Johnson finds it extremely useful to talk to someone with a different point of view. "I get more things done and pursue ideas I wouldn't otherwise be able to do," he says.

BSF documented 75 new discoveries that probably would not have been possible without foundation-backed collaboration. These advances included the development of new methods and techniques, the discovery of new phenomena and major theoretical breakthroughs.

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 2003, 26 projects were funded at 21 U.S. institutions. Virginia State and Virginia Tech have received grants worth more than $3.2 million since 1987, with Tech receiving the lion's share.

The Virginia State project focused on ways to improve the aquaculture potential of hybrid striped bass. According to Prof. Scott Newton, Israel developed a diet to help young fish survive and thereby increase the number available for possible export. If the diet works, it could be manufactured in Virginia and marketed on the east coast.

BARD has also supported several projects at Virginia Tech related to the poultry industry. One, for example, examined factors that determine the rate at which chickens lay eggs.

Israel has developed a DNA fingerprinting method that Prof. Ann Dunnington was using under another BARD grant to identify specific traits in chickens. The idea is to develop the ability to screen the DNA so that producers can breed chickens with the traits consumers want, such as less fat.

Prof. Paul Siegel has worked on a number of BARD-sponsored projects at Tech and gives high grades to BARD. "It wouldn't have been possible to do the research without the Foundation's support." He also lauds his Israeli counterparts as "first-rate scientists, doing first-class research."

Some of the benefits to Virginia from BARD research are more indirect. For example, BARD grantees have developed techniques to help preserve the color, taste and texture of apples, one of the State's important crops.

A team of agricultural economists from the University of Maryland and 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.

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

Hillel Campus Profiles

State Contacts

Jewish Federation of Richmond
5403 Monument Ave., P.O. Box 17128
Richmond, VA 23226
Tel. 804-288-0045

Zvi Yanai (Turbo)
Shoval-Saar Ltd
POB 1642
Caesarea 38900
Tel. 06-626-0629
Fax. 06-626-3686
Email: shovsaar@netvision.net.il

United Jewish Community of the Virginia Peninsula
2700 Spring Rd.
Newport News, VA 23606
Tel. 804-930-1422
Fax. 804-872-9532
Email. webmaster@ujcvp.org
Web. http://www.ujcvp.org/

United Jewish Federation of Tidewater
5000 Corporate Woods Drive, Suite 200
Virginia Beach, VA 23462
Tel. 757-965-6100
Fax. 757-965-6102
Email. UJFT@ujft.org
Web. www.jewishVA.org

Ralph Robbins
Executive Director
Virginia-Israel Advisory Board
CIT Tower, Suite 107
Herndon, VA 20170-4200
Tel. 703-481-7494
Fax. 708-481-7498
Email. robbins@viab.org
Web. http://vaisrael.vipnet.org/