A groundbreaking study released recently at the New England-Israel Business Council’s 2010 Life Sciences Summit at Brandeis University in Waltham, Massachusetts revealed the scope and impact of Israeli related businesses on the Massachusetts economy.
The new study, “The Massachusetts-Israel Economic Relationship,” conducted by Stax Inc., an independent global strategy consulting firm, shows the impact of Israeli innovation and entrepreneurship on the Commonwealth’s economy, and underscores the importance of Israeli relations to the state, especially in the area of life sciences and high-tech.
Highlights of the study include:
- Nearly 100 companies in Massachusetts are founded by Israelis or offer products based on Israeli technology.
- These businesses generated $2.4 billion in direct revenue in Massachusetts in 2009.
- 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.
- Some 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 US 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.
“For us, the choice of Massachusetts was clear, and a perfect match to position our Israeli robotic technology to be able to provide a safer and more precise heart catheterization for the patient and the physician,” said Tal Wenderow, co-founder and executive vice president of marketing and business development, Corindus Vascular Robotics. “Our CorPath 200 System is the first robotic assisted system to perform heart catheterization and stent placement. In preparation for commercial launch we have grown our employee base significantly over the past two years, and we expect even more rapid growth once FDA approval is received.”
"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,” said Ted Carr, executive director of the Massachusetts Office of International Trade and Investment.
Yair Shiran, Israel’s economic minister to North America. "Israel has been called the ‘start-up nation’ for its success in new business innovation. When Israeli entrepreneurs look to globalize, they seek out places where there is an abundant workforce with higher education degrees, strong industry clusters, and a track record of new technologies becoming successful businesses.”
The Stax study, which surveyed Massachusetts business executives of companies based on Israeli innovation and entrepreneurship, also found that other states are aggressively pursuing linkages with Israeli businesses. In addition to Massachusetts, the interviewees particularly identified these five states as being especially attractive to Israeli entrepreneurs for growing their businesses: California, New York, Georgia, New Jersey and North Carolina. The analysis also details ways that Massachusetts can strengthen its economic ties with Israel and compete with other states.
“The Massachusetts-Israel Economic Relationship” study was released at the 2010 Life Sciences Summit, a high-powered two-day program, put together by the New England-Israel Business Council, an organization committed to collaboration between Israeli industry and New England firms, research centers, and other organizations.
The summit brought a delegation from Israel, including a Nobel laureate, venture capitalists, entrepreneurs, and CEOs from some of the most promising Israeli life sciences companies to present to, and network with, an audience of New England leaders in the life sciences, investors, researchers, and government officials. Attendees included executives in biotech, pharmaceutical and medical device companies, researchers, health care providers, investment professionals, and others with an interest in the field.
The 2010 Summit was hosted by Brandeis International Business School. “The Massachusetts-Israel Economic Relationship” study was commissioned, in part, by the Combined Jewish Philanthropies.
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