Monday, June 2, 2003

Community

Guest Commentary: Massachusetts must capitalize on Israeli tech interest

By Robin JR Blatt and Stuart N. Brotman

Recently, an Israeli delegation of high tech business executives spent a week in Massachusetts meeting with CEOs and senior management at companies such as Analog Devices, EMC Corp., Hewlett-Packard and Kronos to benchmark their experiences against those that were instrumental in boosting the commonwealth's stature as a science and technology magnet throughout the 1990s.

Members of this delegation were participants in a management training program developed by Israel's Technion Institute of Management, chaired by MIT's Lester Thurow, and hosted by the law firm of Brown Rudnick Berlack Israels.

The delegation also met with executives from companies such as Cognex, Emptoris, Fresh Food Concepts and Staples, along with representatives from venture capital firms and the Massachusetts Software and Internet Council.

The Israeli companies have a wealth of proprietary technologies, and some have already established business alliances in the United States, Europe and Asia.

They conveyed strong interest in making Massachusetts, particularly Boston, a preferred base of U.S. presence. Some spoke of relocating their corporate headquarters here while maintaining R&D facilities in Israel.

This should be especially good news because many of the market segments that Israel expertise is noted for - such as global security, software, optics, nanotechnology, biotechnology and the life sciences - would enhance the critical mass that Massachusetts needs to rev up its economic engine.

Gov. Mitt Romney and his administration should pick up where the benchmarking visit ended by developing tailored initiatives for Israeli high tech companies and entrepreneurs to make Massachusetts part of their business growth plans. Such programs will give the state a competitive edge in attracting unique enterprises in sectors such as high technology and biotechnology.

This is especially critical since other regions of the country are engaged in strategic planning to build economic infrastructures.

Our local story must be crafted to reinforce the positive impressions that the Israeli entrepreneurs gained during their visit. Here are some key selling points:

• Massachusetts provides unique access to intellectual capital and innovation in academic institutions and companies.

• Multiple systems incorporating tax incentives are in place to facilitate technology transfer and commercialization.

• There are a number of highly focused initiatives aimed at fostering alliances and partnerships. For example, the Boston-Haifa Sister City Program developed by the Combined Jewish Philanthropies represents a building block for broader engagement between these centers of technology excellence.

The American Technion Society of New England has also launched a number of initiatives. Other local institutions, such as the American Friends of the Israel National Museum of Science, are engaged in stimulating U.S.-Israel science and technology collaborations.

• With more than 300 Israeli executives already in senior positions at local technology companies, there is a broad base for mentoring and facilitating profitable cross-border transactions.

• A network of personal and professional relationships that have been built over time are now in place, leading to a higher level of understanding and trust necessary to foster successful business venturing.

Given the economic downturn in the commonwealth and Israel, the climb back to vitality in the technology sector in both places is steep.

Determination, optimism, understanding and a commitment to joint business development efforts between Massachusetts and Israel can foster closer collaboration, creating a whole greater than the sum of its parts.

Robin JR Blatt (biogenuity@biolawbusiness.com) is president of Applied Biogenuity and publisher of The Journal of BioLaw & Business. Stuart N. Brotman (sbrotman@brotman.com) is president of Stuart N. Brotman Communications, a management consulting firm based in Lexington. Both are active in advising on U.S.-Israel science and technology ventures.