December 1, 2004

The State of Maryland and Israel Create High Tech Joint Venture Fund

$1 Million Fund Is First Between Israel and American State

Governor Robert L. Ehrlich, Jr., and Israel's Vice Prime Minister Ehud Olmert today announced the creation of the Maryland/Israel Development Fund (MIDF), a $1 million fund to support new joint product development ventures between high tech companies in Maryland and Israel.

"The Maryland/Israel Development Fund is further proof that Maryland is open for business, particularly in the global marketplace," said Governor Ehrlich. "Minister Olmert and I believe that Maryland and Israel share common strengths in the bioscience, information technology and homeland security sectors. This fund will bring our companies together for joint development of new high tech products that strengthen companies and create jobs in both Maryland and Israel."

Governor Ehrlich and Vice Prime Minister Olmert, who also serves as Minister of Industry, Trade, Labor and Communications, first discussed the Fund idea during the Governor's trade mission to Israel in November 2003. The Fund is modeled on several bi-national research and development funds Israel maintains with other countries including the United States, Canada and Britain. This is the first such fund Israel is establishing with an American state.

The Maryland Department of Business and Economic Development and Israel's Ministry of Industry, Trade and Labor will each dedicate $500,000 for the grants. Maryland and Israeli companies will be eligible for conditional matching grants from their respective governments to jointly develop new commercial high tech products. Projects will be sought in the areas of telecommunications, electronics, software development, homeland security and life sciences. The grants will be repaid from royalties on sales of the products.

Hanan Sibel, Chairman of the Maryland/Israel Development Center which will market the MIDF to local and Israeli businesses said, "The Maryland/Israel Development Fund will be a very useful tool in promoting business and R&D collaboration between our companies. It's the logical next step to the brokering work of the Maryland/Israel Development Center, and further illustrates Governor Ehrlich's leadership in business development and forging bi-national ties. We're proud Maryland is the first state to form such a Development Fund with Israel."

Other Maryland/Israel economic development projects announced during Governor Ehrlich's November 2003 Trade Mission to Israel include: the expansion of Oblicore, an Israeli software company in Columbia, Maryland; the establishment of MarketReach America, an in depth business development consulting program for growing Israeli companies; the establishment of the Marine Biotechnology Research Collaboration between the Center of Marine Biotechnology at the University of Maryland Biotechnology Institute and the Israel Oceangraphic Institute; and M/A-Com's export contract with the Israeli government, making Israel its largest international customer.

 

The Maryland/Israel Development Center is a non-profit organization that promotes trade and investment between Maryland and Israeli businesses. It is an alliance between the Maryland Department of Business and Economic Development, Israel's Ministry of Industry and Trade, and The ASSOCIATED: Jewish Community Federation of Baltimore. For more information, see www.MarylandIsrael.org