A recent study by Stax Inc, an independent global strategy consulting firm, has found that deals between Massachusetts and Israeli companies bring in $2.4 billion. The study looked at the contribution of close to 100 companies in Massachusetts that are founded by Israelis or offer products based on Israeli technology.
Some highlights of the study are:
- In total, the direct and indirect revenue impact on the Massachusetts economy was $7.8 billion.
- From an employment perspective, these businesses directly generated 5,920 jobs in Massachusetts.
- 50% of these businesses focus on information technology, 29% are in life sciences, and the remainder in other industries.
- Israeli entrepreneurs chose Massachusetts over other U.S. destinations to launch or grow their enterprises due to the deep talent pool of educated workers, the opportunity to be part of an industry cluster, world class universities and outstanding business infrastructure.
According to Ted Carr, Executive Director of the Massachusetts Office of International Trade and Investment, “The Commonwealth is a natural destination for Israeli innovators and entrepreneurs, due to our common focus on the life sciences, technology, and clean tech industries, as well as our shared commitment to outstanding universities and highly-skilled workforces. The many Israeli companies that have successfully established in Massachusetts are evidence of the strong relationship that exists between our two regions. We look forward to the continued growth of this relationship in the future.”
The study also found that other states are pursuing linkages with Israeli businesses. A delegation from Oregon led by Governor Ted Kulongoski is expected in Israel later this month to scope out partnership opportunities. Many state efforts have been facilitated by their local chambers of commerce. The chambers of commerce, including the southeast region and Texas, actively promote and facilitate business between Israel and American companies. Some of the most successful events for increasing business have been The Israel Conference and the IsraelWeb Tour in California.
The Massachusetts study was partly commissioned by the Combined Jewish Philanthropies. Israel’s Ministry of Finance should look at this and commission a full study of the contribution of Israel-related business to the American economy next.