|
|
 |
|
American-Israel Chamber of Commerce, Southeast Region
400 Northridge Road, Suite 250, Atlanta, GA 30350
Tel: (404)843-9426 Fax: (404)843-1416 e-mail: aiccse@aiccse.org website: www.aiccse.org
|
| November 12, 2009 |
| From The Leadership |
 |
|
|
Finally, the story of Israel’s economic miracle has been written. The newly released book Start up Nation addresses the very relevant questions: How is it that Israel — a country of 7.1 million, only 60 years old, surrounded by enemies, in a constant state of war since its founding, with no natural resources — produces more start-up companies than large, peaceful, and stable nations like Japan, China, India, Korea, Canada, and the UK? Why has Israel, per person, attracted over twice as much venture capital investment as the US and thirty times more than Europe? And what can America learn from the Israeli success formula?
Obviously, this is the subject near and dear to those of us, at AICC, who have devoted ourselves to the cause of Israel’s economic development since 1992. The book quotes many members of our Israeli Advisory Board and other Israelis with whom our Chamber has had a long and very close relationship. While the country’s military orientation, immigration policy, and creation of a venture capital industry have been key components in this “secret sauce”, it is also clear that the Israeli entrepreneurs have counted on the connections and expertise of our members who have helped them open the doors to potential strategic partners, investors, and customers and to our many educational programs that have raised awareness of the Israel “brand” of innovation.
We are pleased to welcome and introduce the book’s co-author Dan Senor on Monday, November 16th for his presentation at the Atlanta Jewish Book Festival. Click here to view the recent CNBC interview with Dan, and get a preview of this excellent book and program that should be so meaningful to our members. |
|
| Upcoming Calendar Events (click on event for details) |
|
|
|
| Sponsor Message |
|
 |
Atlanta’s #1 Office Furniture Resource, has been growing with Atlanta businesses for over 25 years! We deliver your corporate image – whether it’s in-stock, special order or custom designed to your unique needs – for your home office or business location. Ask for your AICC discount! Please call Karl Altmann: 770-455-0440, karl@ofexpo.com or see us online at www.ofexpo.com for all your furniture, space planning, design and office accessory needs. |
|
|
AICC offers an exclusive sponsorship for each e-Newsletter. For information on sponsoring future e-Newsletters, contact Shelley Samach, aiccse@aiccse.org.
|
|
|
| The Latest News |
|
| Developments & Transactions |
 |
 |
| Israeli Companies Contacting Us |
| |
|
IV Administration – Kfar Vitkin-based developer of technologies to prevent errors in the administration of parenteral drugs and monitoring and managing IV infusion and blood transfusion systems offers first product that includes a plastic valve and electronic hand-held device that ensures the right drug is administered to the right patient at the right time and in the right sequence. Expected to go to market in the next 12-18 months, and future product line includes infusion / transfusion therapies, a disposable mechanical valve, a disposable electronic valve, reusable electronic valve with flow rate control, and infusion monitoring / management system. Seeking strategic partners as well as $2 million investment for their first product launch.
Graphic Design – Jerusalem-based studio and publishing house offers graphic design, print production, advertising and marketing services. Clients include leading private and corporate institutions in Israel and abroad. Native English speaking staff understand American culture and mentality, provide cost savings, and work on Sundays to deliver projects first thing on Monday. Seeking introduction to potential customers in the Southeast.
Cleaning Products – Hod Hasharon-based manufacturer of household cleaning products and toiletries offers cleaning liquids, laundry detergents, toiletries, diapers & paper, air fresheners, pesticides, and insect repellants. Over 600 products of high quality and special niches for every household cleaning problem, many of them with advantages not found in domestic producers. Seeking distributors for the Southeast.
Biotech Fund – The Ministry of Finance and Office of the Chief Scientist have published the tender for the biotechnology fund in which the government will invest $80 million. The manager of the fund, from the private sector, will have more discretion to direct investments into medical devices, and the tender does not stipulate that the fund must channel investment to companies in advanced clinical trials, instead giving more freedom of action to invest in earlier stage companies as well. The deadline for candidates to submit bids for managing the biotech fund is February 9, 2010, and the winner will be announced on March 1. The preferred candidates are venture capital funds or holding companies. |
| Economic News From Israel |
| |
|
Exports: Strongest Indicator of Revival?
|
Total goods exports excluding diamonds, 2008 to October 2009
($ billion, seasonally adjusted data)
|
|
|
| Source: Central Bureau of Statistics |
| A central topic of discussion in economic circles these days is how fast are economies recovering from the recession (there is pretty much consensus that the global economy has started to recover) and are some economies recovering faster than others.
The Israeli economy seems to be doing quite well in the revival rankings. In its World Economic Outlook of October 2009, the International Monetary Fund (IMF) estimates Israel’s 2009 growth rate as a minimal decline of -0.1%, while growth for the whole group of advanced economies (of which Israel is a member) is estimated to be declining at a rate of -3.4%. IMF forecasts of growth in 2010 are +2.4% for Israel and +1.3% for all advanced economies.
GDP growth in Israel in Q2/09 was already positive (an annualized rate of +0.8%, after two quarters of negative growth) while growth remained negative in most major advanced economies in that quarter (with some important exceptions: Japan, Germany and France all had positive growth in the 2nd quarter). Third quarter GDP data for Israel will only be published on November 16th, and it will be interesting to see if 3rd quarter growth will be faster than 2nd quarter growth (in the meantime, the 3rd quarter growth rate for the US was published as an impressive annualized 3.6%, after negative growth in the previous 4 quarters.
One of the main factors behind Israel’s relatively good revival ranking seems to be a rapid comeback in exports (see graph). Exports declined sharply from July 2008 through April 2009, but have since then bounced back almost equally sharply through October (data for October were published on 11 November). True, the level of exports in October was still 12-13% below the peak level of June 2008, but there is a clear, fairly smooth upward trend in exports, which is likely to continue as the global economy continues to revive (with a likely acceleration in its rate of revival).
Export-based growth is – and has always been – extremely important for the Israeli economy, which needs the foreign currency income from exports to pay for imports – imports have also been increasing in recent months and are also expected to continue to increase in the months ahead as the economy continues to revive.
The need to preserve the upward trend in exports is an important factor in interest rate policy facing the Bank of Israel. If a gap opens up between (higher) interest in Israel and interest elsewhere, particularly the US, the shekel will strengthen against the US dollar, thus reducing the competitiveness of Israeli exports in global markets. This may help to explain why the Bank of Israel, after being the first central bank among central banks in the advanced economies to increase interest in September 2009 (from 0.5% to 0.75%) has since then left interest unchanged – especially since the US Federal Reserve has still not increased interest.
The reason for the US reticence in this area seems to be that the Fed is still uncertain about the strength of the US revival. There is less uncertainty about this in Israel – a feeling that could possibly justify additional interest rate increases, but clearly the Bank of Israel does not want to jeopardize the fact that the current stronger revival in the Israeli economy is in large part export-based.
Provided as an information service by I-Biz – Israel Business Information Services Ltd. For more information on I-Biz Information Services, visit www.i-biz.co.il or contact info@i-biz.co.il.
|
| I-Biz is offering its widely-subscribed-to monthly electronic macro-report — The Israeli Economy: Current Highlights - to AICC members at a special price of $240 (33% off the regular price) for an annual subscription (12 monthly reports). Contact Yaacov Fisher at fisherya@i-biz-co.il to receive the most recent issue of the report (for August 2009) as a sample. |
- Motorola will acquire Netanya-based BitBand Ltd. for $10 million. The developer of video content delivery network solutions for service providers enables the provision of Internet Protocol video-on-demand. BitBand and Motorola participated in the 2006 US-Israel Broadband Business Exchange in Atlanta organized by the American-Israel Chamber of Commerce, Southeast Region.
- Siemens, with major operations in the Atlanta area, has clinched the deal to acquire Beit Shemesh-based Solel Solar Systems, a solar thermal energy systems manufacturer, for $418 million. Solel has about 500 employees including 400 in Israel and $90 million revenue for the first half of 2009.
- Petach Tikvah-based Teva Pharmaceuticals, the world’s largest generic drug manufacturer, reported 3rd quarter record profits of $806 million on revenues of $3.55 billion, up 28%. The company has launched 17 new products in the US since the beginning of the year with another 210 awaiting FDA approval.
- Agrexco, Israel’s agricultural cooperative, reported an increase of over 50% in its export of avocados. Last season, Israel’s avocado exports totaled 32,000 tons with revenues of $70 million.
- Herzliya Pituach-based Kaman Holdings subsidiary, Isal Amlat Investment Ltd. is expanding its field of business in the US by buying two more gas stations and convenience stores in North Carolina as part of a deal to purchase five properties for $5.7 million.
- Chief Scientist Dr. Eli Opper of Israel’s Ministry of Industry Trade & Labor has approved NIS 20.5 million in grants for 12 new incubator projects including a combination of drugs to cure open wounds and develop antibodies to prevent and cure infectious diseases at NGT in Nazareth, a system to deliver medicines under development at Yozmot Granot Initiative Center, a project to develop insulin-producing tissue to treat diabetes and another for monitoring amniotic fluid in pregnant women at Van Leer Ventures Jerusalem Ltd.
- Exports of Israel’s 100 largest companies totaled $5.53 billion in the 3rd quarter of 2009, similar to the preceding quarter but 23% less than in the corresponding quarter of 2008 according to the Ministry of Industry Trade & Labor. A breakdown by regions showed a 13.8% increase in exports to North America in the 3rd quarter compared with the 2nd quarter, following a 21.9% increase in the 2nd quarter compared to the 1st quarter.
- The Central Bureau of Statistics predicts zero GDP growth in 2009 after 4% growth in 2008 and 5.2% growth in 2007. The GDP per capita is forecasted to fall by 1.8%.
- 108 Israeli start-ups raised $330 million from venture capital funds during the 3rd quarter of 2009 according to the IVC Research Center. The amount raised was about half of the $600 million raised by 124 start-ups in the corresponding quarter of 2008, an 8-year high, but was 9% more than the $279 million raised by 122 start-ups in the preceding quarter.
- In its MoneyTree report, PricewaterhouseCooper Israel noted that investment in Life Sciences start-ups was higher than in previous quarters, and reached its second highest level in the past four years.
- Israel’s unemployment rate fell to 7.6% of the civilian labor force in August, and in the previous 12-month period, there were 46,000 unemployed persons, according to the Central Bureau of Statistics. The unemployment rate has been falling since May, and there has been a 15% increase in the number of available jobs in September compared to the preceding month.
- The Israel Economic Development movement lost one of its founding fathers with the death on October 22nd of Elmer L. Winter of Milwaukee, founder of the Committee for the Economic Growth of Israel in the 1960′s. Winter was the co-founder and past president of Manpower Inc., a worldwide temporary help service agency with offices in Israel.
|
|
|
| Events |
|
|
 
Thursday, November 12th, 5:00 – 8:00 pm
IBM On Demand Innovation Center
4111 Northside Parkway NW
Atlanta, GA 30327
(Click here for Map)
This kick-off event for the Israel Innovation Impact series will explore how innovative marketing technologies and strategies from Israel and the US are transforming the in-store / branch retail experience.
The program includes:
Demonstration of Israeli digital advertising technologies
  
Panel discussion on industry topics
Moderator: Benjamin Mokotoff – Kurt Salmon Associates
Josh Kampel – YCD MultiMedia
Benzi Axelrod – Odysii
Dr. Vicki Rabenou – TruMedia
Ken Lawler – IBM
Networking, heavy hors de’oeuvres (kosher style), wine and beer
Sponsors to Date
Platinum Sponsors
 
Silver Sponsor
 
Organizational Co-Sponsors
   
|
|
| Membership |
|
| AICC Welcomes New Members! |
| |
|
Andrew S Albrecht
A2 Advisors
1120 Park Glenn Drive
Alpharetta, GA 30005
Tel: (404) 840-4102
e-mail: andrew@a2advisors.com
|
|
Donald Granger
239 Southern Hill Drive
Duluth, GA 30097
Tel: (678) 475-9955
e-mail: drgran@bellsouth.net
|
|
Vicki Rabenou
TruMedia Technologies Inc.
12610 Race Track Road
Tampa, FL 33626
Tel: (813) 505-0007
Fax: (813) 637-2589
e-mail: vicki@tru-media.com
website: www.tru-media.com
|
|
| AICC Thanks Members for Renewing! |
| |
|
| Benjamin Jackson – C.R. Bard, Inc.
|
|
|
| Other |
|
|
|
|
 |
| |
AICC copyright 2006 |
|
Site Developed by 
