Publisher's Notebook
Ohio's Israeli Pipeline
B
uried at the bottom of a series of business briefs in
the Dec. 6 edition of USA Today was an item that
carried this clever headline: "Rubber Capital of the
World Bounces Back!'
The article said that thanks to innovation and polymers,
Akron is making a comeback and
has been Ohio's only major city, aside
from Columbus, to add jobs since
1983.
It was the last paragraph of the short
story that caught my eye:
"[Akron] City leaders have also
invested $1.5 million in a business
incubator in Israel, with a deal that
any viable companies that emerge be
located in Akron."
Hello, Detroit. Hello, Wayne County.
Hello, Oakland County. Hello, Michigan.
Hello, Detroit Jewish community.
At a time when
the Michigan economy is in a major slump,
and people are leaving the region because
of a perceived and real lack of employ-
ment opportunities, little Akron has forged
a unique partnership between the public,
private and not-for-profit sector to invest in
Israel and their own future.
Mayor Don Plusquellic, Akron-based
national Jewish leader Joe Kanfer and former Akron Jewish
Federation CEO Mike Wise were instrumental in assembling
the venture, Greater Akron Investment Partners, whose par-
ticipants include the Weatherhead School of Management
at Case-Western University, the Kent State University
Foundation, the Jewish Federation, private investors and the
Michigan has been leaving
money on the table that would
strengthen us and Israel.
city and county governments.
But there's more.
Knowing the competitive nature between Michiganders and
Ohioans, we seem to be losing more than the annual football
classic to the Buckeyes. According to 2006 data compiled by the
Jewish Virtual Library, Israel ranked as Michigan's 30th-largest
trade partner. Over the same period, Israel ranked as Ohio's
16th-largest trade partner, doing $307 million in exports, three
times the volume of business that Michigan does.
Cleveland Area Inroads, Too
Beachwood, a suburb of Cleveland with a significant Jewish
population, is home to 40 Israel-based companies that have
recently established operations there. Does anyone even know
of Israel-based companies that have recently established
operations in Southfield or any other Detroit metropolitan
community?
And it appears Michigan has been leaving money on the
table over the years for incentives focusing on strengthening
the U.S.-Israel business relationship.
Since its inception in 1977, the Bi-national Industrial
Research and Development Foundation (BIRD) has made
740 grants to projects that lead to the development and
commercialization of innovative, non-defense technological
products. The foundation estimates that these grants have
created 20,000 American jobs. Over the span of the foun-
dation's life, Michigan companies have received four BIRD
grants worth $1.13 million.
Michigan universities, most notably the University of
Michigan and Michigan State, have done a bit better in secur-
ing grants for joint science and agricultural projects with
Israel.
The Bi-national Science Foundation has awarded $1.9 mil-
lion in grants since 1987 while the Bi-national Agricultural
Research & Development Fund has awarded $7.8 million over
the same time frame.
One of the reasons Ohio has far outdistanced Michigan
in its business and job-creating relationship with Israel and
Israeli companies is the existence
and success of the Ohio-Israel
Chamber of Commerce. While there
was a Michigan-Israel Chamber of
Commerce, it has been defunct for
years. Web searches turn up old and
outdated addresses, phone numbers
and locations.
New Efforts In Michigan
That is about to change with the creation of the Michigan-
Israel Business Bridge. Seeking to strengthen the link between
Michigan businesses, universities, venture capitalists and
Israeli companies and entrepreneurs, the Michigan-Israel
Business Bridge will attempt to fill an embarrassing gap in
turning our community's desire to bring job-creating ventures
here into reality. It held its first membership meeting on Dec.
20.
Chuck Newman of Ann Arbor, one of the organizers of the
Business Bridge, said that 22 Israeli companies have already
come to look at Michigan and are very enthused at what they
see. Recently, a Michigan-Israel partnering event in Troy
focused on the automotive sector. Several state legislators
visited Israel in August to look at economic development
opportunities.
Israel currently boasts more than 2,500 high-tech compa-
nies, with heavy concentrations in the life sciences, homeland
security, alternative energy, water technology, agro-technolo-
gy, optics, Internet and nanotechnology. It ranks right behind
only Silicon Valley and the Boston, Mass.-Route 128 Corridor
in high-technology startups.
With Israel about to celebrate its 60th anniversary, our
community must be re-educated and re-oriented to the needs
we have here and guided to opportunities that provide a solid
but more mature relationship with Israel.
The development of job-creating business opportunities
here for Israeli companies is an example of that mature rela-
tionship.
Imagine the possibilities. ❑
If you are interested in helping to advance the efforts of the
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PHONE 248.538.6611
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ONLINE:
www.jarc.org
30301 Northwestern • Suite 100
Farmington Hills, MI 48334
Michigan-Israel Business Bridge, please contact its membership
chair, Mark Milgrom: (248) 420-3537.
January 3 • 2008
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