Proposed Joint Capital District (NY) Israel Initiative
A Joint Capital District (NY) Israel initiative to promote Nanotechnology, Biotechnology, and Homeland Security research has been proposed. The objective is to create joint research ventures and to commercialize the resulting technology.
Create a link between the New York and Israeli Jewish technology communities, as well as technology professionals in those communities. It will also connect Israeli Jews in the technology sector to each other, and bring the Israeli tech community into a global network of Jewish technology professionals.
Israel's nanotechnology startups and established companies have attracted extensive investments, over US$1.4 Billion in 2004 alone. Israel's seven leading universities and research institutes also have nanotechnology centers, with particular strength in nano-biotechnology and nano-electronics.
Highlights from the Israeli Semiconductor Industry
- The world's first nanowire (three times thinner than those used in microchips) was created at the Technion, the Israel Institute of Technology
- Motorola was the first multinational semiconductor company to establish facilities in Israel, in 1964. Motorola has enjoyed the longest presence of any major investor in Israel and boasts the company's largest development center in Israel. Motorola Israel's radio communications products and systems generated revenue valued at $846 million, out of a worldwide total of $27 billion.
- Intel established its R&D presence in Israel in 1974 and opened its semiconductor plant in 1985. It is currently the country's largest private employer with roughly 5,800 employees in 2004. Intel recently agreed to build a $4 billion semiconductor plant in Kiryat Gat, which is expected to create about 2,000 jobs directly and a similar number indirectly.
- Intel Israel developed the i860 XP microprocessor with RISC technology of which 2.5 million transistors per chip have been developed.
- Intel's popular Pentium 3 chip was developed in its Israel facilities. Its faster version, Pentium 4 has also been developed in Israel. Intel's Centrino Chipset with enhanced WiFi capabilities, also designed in its Israel plant, has earned Intel more than $5 billion worldwide.
- National Semiconductor, the California-based firm, established its Israeli facilities in 1978. Its Israeli R&D team were the first to integrate all semiconductor components of a PC onto a single chip
- Other semiconductor multinationals with facilities in Israel include Infineon, Vishay, Texas Instruments, Tower Semiconductors
- SELA Ltd., an Israeli company that develops automated scanning electron microscope (SEM) and transmission electron microscope (TEM) preparation equipment, was recently named Editor's Choice Best Product Award by the prestigious Semiconductor International magazine for its TEMpro sample preparation system.
- Israeli Saifun Semiconductors Ltd., is marked as the most promising startup in Israel, develops technology to quadruple memory capacity in serial flash memory devices for products such as digital cameras, cellular phones, PDAs and so forth.
- Israeli DSP Group, developers of equipment to convert speech and other audio data into digital for telephone answering devices, PC's wireless products and other consumer electronics, is now considered a leader in its field with over 60% market share.
- Lipman Electronic Engineering Ltd. manufacturers of fixed and handheld transaction solutions, is the current leading supplier of wireless-point-of-sale terminals in the United States. It is ranked amongst today's premier providers of robust, flexible and highly customizable electronic payment solutions.
- Tower Semiconductor, Israel has the second largest fab (semiconductor manufacturing plant) in the country after Intel. Its site contains 200mm capabilities with 150mm diameter wafers, which is used to provide turnkey services for companies including Motorola, National Semiconductors and SanDisk.
- Leading multinational Applied Materials' Process Diagnostics and Control Division in Israel, bought Israeli company Orbot's Opal Semiconductor inspection business in 1997. Its SEMVision scanning electron microscope (SEM) is widely used in laboratories worldwide for semiconductor failure analysis.
- Startup Negevtech has developed Step & Image, a highly developed numerical aperture ultraviolet inspection tool which combines bright and dark field imaging. The target market of which is 65nm processing and beyond, which is a marked achievement and blends direct, perpendicular illumination with a faster and less expensive system.
- A research team at the Technion has discovered a new type of semiconductor called electronic peptides. These are organic semiconductors using proteins designed from scratch in the laboratory. The proteins are linked together in precise chains to create electronic-grade material. This has the potential to lead to lighter, cheaper and more flexible electronic devices. Furthermore, they could be used in sensor devices to detect tiny amounts of disease molecules in the body or toxins in the environment.
Biotechnology in Israel
Fourth in the world in biotechnology patents per capita, Israel not only has the talent to innovate, but the skills to transform technology into successful enterprise. A generous government incentives program is a major factor for pushing progress forward.
Facts and Figures
1 The Weitzman Institute for Science is 3rd in the world in technology transfer profits with $93 million in 2003. Specific areas include: Neurology, Cancer, Autoimmunity, Inflammation, Cell Therapy, Proteomics, and Computational Biology.
2 Israel’s breakthroughs often result from converging technologies including physics, mathematics, computer sciences, nanotechnology, and materials.
3 Recent awards shower praise on Israeli scientists and its institutions, for example, the 2004 Nobel Prize given to Prof. Ciehanover & Prof. Hershko in Chemistry, and the 2005 Wolf Prize awarded to Prof. Alex Levitzki in Medicine.
4 Israel is an R&D leader in Embryonic Stem Cell research.
a Between 8-10 lines of Embryonic Stem Cells are ready to be commercialized
b Various companies are establishing GMP procedures
c A facility for Embryonic Stem Cell production is under construction
d Advanced Stem-Cell technologies are being developed that will soon solve the challenges of “matching”.
5 Two companies developing cell therapy are in clinical trials, one of them is first in the world in Stem-Cell therapy.
6 Graded 3rd in Europe, Israel has ten drugs currently in advanced stages of clinical trials.
7 With over 150 companies, Israel is 5th in Europe and 8th in the world for number of Bio-Pharma companies (2003).
8 Israeli ethical drugs on the market:
Copaxone, TEVA for treating MS –$720M (2003)
Herbif, Interpharm for treating MS – $819M (2003)
Exelon, Novartis for treating Alzheimer’s – $320M (2002)
Doxil, J&J for treating Cancer – $210M (2002)
Recombinant human Growth Hormone, BTG
BioHy, BTG for treating knee injury
Rasagiline, TEVA for treating Parkinson – FDA approved.
Homeland Security (HLS) & Public Safety in Israel
As a top national priority, Homeland Security in Israel is more than just an exportable commodity. Israel’s self-reliance has created a diversified and cutting edge security industry, adding innovation to existing technologies as well as developing new ones. Israel today has earned its worldwide reputation for providing leading security solutions and continues to successfully partner with key world players to protect airports, seaports, government offices, financial institutions, recreational centers, international events and more.
Highlights
1 Out of necessity to actively combat geopolitical threats, Israelis began designing, developing and manufacturing military equipment as early as the 1920s.
2 Israeli security industries are internationally active in several areas such as: Critical Infrastructure Protection, Counter Terrorism, CBRN, C4I, EMS and Public Awareness, Law Enforcement.
3 Israel’s security industry is made up of a combination of other advanced technology fields such as the defense industry, telecommunications, and software and medical industries.
4 Israeli companies are involved in many international projects such as border control, airports, sea ports, public transportation, etc. For example, 15 Israeli companies were involved in a $200 million project for the Athens 2004 Olympic Games. Activities included venue protection, command and control rooms (67!), maritime security, airports, urban security, crowd control, preparation of law-enforcement units, access control, communications and more.
5 The key to many Israeli companies’ success in offering maximum security lies in their integration of several technologies as opposed to the development of a single technology.
6 Israeli companies excel in Critical Infrastructure Protection, offering unique capabilities .
7 In 2004, the Israeli Export and International Cooperation Institute (IEICI) launched the HLS Masterkey Project to assist and promote the Israeli-American cooperation both in the US and globally. 200 Israeli companies joined the project.
8 General Figures
- An estimated 600 Israeli companies are active in the security sector, with the following breakdown: 35% Technologies, 35% Products, 20% IT & Software 10% Services
- Approximately 350 Israeli security companies export their products.
- The annual security industry turnover is about $4 billion, with 25% or $1 billion exported
- The sector market growth is forecasted at 10-15% per year through 2010.
Venture Capital
With 100 active funds and over $10 billion under management, Israel’s venture capital industry thrives like in no other country. In 2004, foreign funds committed over 50% of the total dollars invested, demonstrating that Israel is an internationally sought after and sound investment.
Facts and Figures
1 Major US/European venture capital funds have opened Israeli branches, including Sequoia, Benchmark, Accel, Walden, Advent, Apax, Alta-Berkeley, and Partech.
2 Many leading US/European funds such as Lightspeed, Accel, and Greylock actively source deals with an in-house Israeli specialist.
3 Many major multinationals invest in Israel such as HP, TimeWarner Inc, Sony, Cisco, and more.
4 Between the years 2000- Q1/2005, the top 5 most active foreign investors are Intel Capital, JP Morgan, JAFCO, Accel Partners, and Shamrock.
5 Ranked by first time investments, the most active investors in 2004 were JVP, Vertex and Giza.
6 A total of 428 deals were made in 2004.
7 Israeli companies raised over $1.4 billion in 2004.
8 Foreign funds represent over 55% of the total dollars invested in 2004.
9 Over $724 million was raised from Limited Partners for Israeli Venture Funds.
10 Israel's 54 seed investment deals are impressive compared to 23 deals in Europe and 72 deals in the US in 2004.
11 In 2004, Israel ranked first in capital raised by hi-tech companies in Europe, beating out the UK, France and Germany who come second, third and fourth.
12 Over the past 10 years, Israeli venture capital funds have raised over $8.7 billion.
13 Israel has the highest Venture $/GDP rate in the world, which is seven times the US rate, 1.3% vs. 0.17% (OECD DATA 2004).
14 Israel’s venture capital success can be attributed to the impressive entrepreneurial culture that exists. Currently, there are over 1,500 active start-ups in the country and 300-350 are expected to be established in 2005.
15 More companies that originated in Israel are listed on NASDAQ than from any other country in the world. In 2004, 8 venture backed Israeli companies raised $413 million from IPOs.
16 The transaction amount from venture backed M&A topped $888 million in Q1/2005 alone.
