I BUSINESS WHATEVER THE OTHER DEALERS CHARGE ... MEL FARR WILE SHE FOR LESS! "WE WANT TO EARN YOUR BUSINESS! PLUS . . . DRIVE ANY OF THESE CARS AND GET FEBRUARY DISCOUNTS! FORD - ,_. 24750 Greenfield Rd. Oak Park, MI 48237 : 14750 Orseisfleld Rd. id 10 IOW Rd. MEL FARR FORD 0 - .1 r , Israeli High Tech: A Sure Thing? Mel Farr Ford 967,3700 JOEL BAINERMAN Special to The Jewish News A MIKE SCHNEIDER MARK NESSEL NEW '91 ESCORT :."xx: mmOckW ", : ........ ' ,//01 ;.: ..... BUY $ 6,557 • " ./ . . , . Stk. #1006 48 mos. S175 sec. dep. Stk. #888 36 mos. S250 sec. dep. TOYOTA 1$11 S. Telogroph HT— North of Square Lake Dalton! Lk. Rd. 1951 S. Telegraph Rd. Bloomfield Hills, MI 48013 )14k "444, - --- NEW '91 TAURUS BUY $11,733 ...... ..... 4116P LEASE $ 166.96/mo. MEL FARR TOYOTA LEASE $ 249.93/mo. 333.3300 Mel Farr Toyota JAY PUZIO NEW '91 CELICA • ,• BUY $11980 . • LEASE $198.70/ma -- . . Stk. #1281 60 mos. S200 sec. dep. .... .... .. . ....... ......... 15 to choose from • ...... NEW '91 CAMRY 25 to BUY 11,890 choose from Stk. #1450 60 mos. S200 sec. dep. LEASE $ 249.93/mo. Mel Farr Lincoln Mercury MERCURY 683,9500 LI NCOLN 4178 Highland Road (M•59 near Pontiac Lake Road) WATERFORD LOU GORDON OR MICKEY GOLDBERG "Fully loaded' NEW '91 GRAND MARQUIS BUY $16,1745° LEASE $339.37/mo. Stk. #L0163 36 mos. S375 sec. dep. sid NEW '91 CONTINENTAL BUY $ 25,163 LEASE $465.39/rno. 60 mos. 5200 sec. dep. Stk. #L0520 All vehicles plus tax, Title, Lic. Lease pymt. on CONTINENTAL & GRAND MARQUIS BASED ON 24 MO. CLOSED END LEASE. 30,000 MI. LIMIT 11' PER MILE EXCESS. CONT. REQUIRES 1ST MO. PLUS 5415,00 SEC. DEPT. GRAND MARQUIS REQUIRES 1ST MO. PLUS 5375 SEC. DEP. TO GET TOTAL AMT. OF PYMTS. MULTIPLY PYMT. BY # MONTHS. WITH APPROVED CREDIT. PRIOR SALES EXCLUDED SALE ENDS 6 PM FRIDAY FEB. 15, 1991. PHOTOS MAY '91 vehicles in stock only. NOT REPRESENT ACTUAL VEHICLES ON SALE AT ADVERTISED PRICES. 52 FRIDAY, FEBRUARY 8, 1991 re Israel's high-tech industries in trouble? In 1989, Israel ex- ported about 13 billion in technologically advanced pro- ducts, compared to $1.6 billion in 1983 and $400 million in 1975. It's estimated that by 1995 the high-tech sector will ac- count for more than 60 per- cent of projected total exports of $12 billion. Exports have in the past five years exceeded 20 percent annual growth and are targeted to reach $8 billion in 1995. Yet, the president of the Electronics Industries Association, Moshe Or-Tas of Israel Aircraft Industries, says that due to rising labor costs and an overvalued shekel, he is apprehensive about growth in the elec- tronics sector of the high-tech industry. A recent survey of 40 elec- tronic companies by the Elec- tronics Industries Associa- tion, a trade group represen- ting the majority of elec- tronics companies in Israel, reported a marked decline in investment in the industry. Most firms surveyed plann- ed to reduce its workforce this coming year due to a shrink- ing backlog of orders. The most disturbing factor was that only 20 percent of the companies surveyed said they planned on increasing capital investment. Against this backdrop the annual conference of the Association of High-Tech- nology Companies, a consor- tium of 1,200 companies, met recently in Tel Aviv. Its President, Moshe Cohen, claims one of Israel's major problems in its advanc- ed technological industries is the raising of funds for marketing and production. He points out that only 4 percent of Israel's high-tech firms produce 71 percent of the sector's exports. Typical- ly, once a small firm moves from research and develop- ment to production and marketing, the lack of available expansion funds means that it "can either go bankrupt," or be taken over by a larger company thus sap- ping its youthful vitality and independence. He contends that only the establishment of local ven- ture capital pools will solve this dilemma and his Associa- tion has asked the Knesset to approve a plan which would create venture capital funds of a truly unique type. If the legislation passes, the seven or eight venture capital funds, which will operate much like mutual funds, could raise a total of about $180 million on the Tel Aviv Stock Exchange. Each fund will be able to invest up to a maximum of $4 million over a period of seven years in a com- pany's R & D and marketing efforts. If the investors are not satisfied with the perfor- mance of the fund the govern- ment has pledged to reim- burse them for 80 percent of the value of their original investment. The plan also calls for the establishment of private ven- ture capital funds which will carry an 80 percent govern- ment guarantee. This means TWenty percent of the companies surveyed said they planned on increasing capital investment. Only 4 percent of Israel's high-tech firms produce 71 percent of the sector's exports. that even if the $20 million is raised in Canada, and the money is invested here, if the original investors lose their investment, 80 percent of it will be returned. The main problem, accor- ding to Mr. Cohen, rests with Israel's bureaucratic chan- nels which have kept the pro- posal from being im- plemented for nearly two years. "If the government would pass this legislation, it would be a historical breakthrough to establish a proper venture capital industry in Israel," Mr. Cohen says. "Doing it would be saying, 'We believe in our high-tech industries and are ready to put our money where our mouths are.' " Mr. Cohen points out that even by offering 80 percent government guarantees the public would be the ultimate beneficiaries via the suc- cessful companies. He claims that in the U.S. in the early 1970s, 70 high-tech com- panies raised $200 million