Israel’s transition from struggling agrarian upstart to pulsing hi-tech superpower is often mentioned with a certain wistful, nostalgic longing. In reality, though, the pioneering spirit of Israel has remained throughout; what early and recent generations have in common is that both have managed to create astonishing new blossoms in the place of barren wastelands. Some have even undergone that transformation personally. Dan Vilenski, for example, picked oranges in the orchards near his home in Binyamina as a boy. Over the past 40 years, he has led several hi-tech companies, championed government investment in local hi-tech research, and headed the Israel National Nanotechnology Initiative. The unique way in which Israeli hi-tech companies influence global markets is not through their size, but through their innovation. Rather than establishing the largest companies in a given field, Israelis repeatedly manage to introduce technologies and create products that set worldwide industry standards. Through both homegrown companies and local branches of international firms, Israel has been the source of a long list of breakthroughs in dozens of hi-tech fields. Israeli communications innovations include the first telephone line doubler, the first commercial voice-over-Internet phone (VoIP) technology, the first consumer product for instant online chat, and much more.

1. The Israel Project
Jerusalem Office
Tel: 972 2 623-6427
Fax: 972 2 623-6439
www.theisraelproject.org
Twitter: @israelproject
Facebook: www.facebook.com/theisraelproject
Youtube: www.youtube.com/tipinfo
Israeli Hi-Tech Innovation
TABLE OF CONTENTS

2. About TIP 3
Introduction 4
Communications 4
Biotechnology 6
Nanotechnology 8
Binational Industrial Research and Development Foundation (BIRD) 10
Updated 20120228
ABOUT TIP

3. The Israel Project (TIP) is a non-profit educational organization that gets facts about Israel and the Middle
East to press, public officials and the public. The Israel Project is not affiliated with any government.
Our team of trusted Middle East multi-lingual experts and former reporters provides journalists and
leaders with fact sheets, backgrounders and sources. TIP regularly hosts press briefings featuring leading
Israeli spokespeople and analysts that give journalists an opportunity to get information and answers to
their questions face-to-face. By providing journalists with the facts, context and visuals they need, TIP
enables hundreds of millions of people around the world to see a more positive public face of Israel. This
helps protect Israel, reduce anti-Semitism and increase pride in Israel.
The Jerusalem Office
The Israel Project's (TIP) Jerusalem Office is a non-governmental resource working with foreign
journalists and leaders based in Israel. It provides reporters and members of the diplomatic community
with needed facts and information before they file their stories/reports. TIP's Jerusalem team features
several Middle East experts and former journalists. TIP's Israel team, led by Marcus Sheff, includes
experts who are fluent in English, Hebrew, Arabic, French, German, Farsi and Russian.
Contacts
Marcus Sheff
Executive Director
Tel: 972 2-623-6427
Cell: 972 54-807-9177
E-mail: marcuss@theisraelproject.org
David Harris
Director of Research and Content
Tel: 972 2-623-6427
Cell: 972 54-807-9498
E-mail: davidh@theisraelproject.org
Eli Ovits
Director of Communications
Tel: 972 2 623-6427
Cell: 972 54-807-9093
E-mail: elio@theisraelproject.org
Shimrit Meir-Gilboa
Director of Arabic Media Program
Tel: 972 2-623-6427
Cell: 972 54-801-5982
E-mail: shimritm@theistraelproject.org
Sharon Segel
Communications Associate – Media
Cell: 972 54-807-9078
E-mail: sharons@theisraelproject.org
Ronit Shebson
Senior Communications Associate – Leaders
Cell: 972 54-807-9065
E-mail: ronits@theisraelproject.org
Shai Oseran
Media Tours Coordinator
Cell: 972 54-803-3471
E-mail: shaio@theisraelproject.org
Arik Agassi
Communications Specialist – Tours & Events
Cell: 972 551 7376
E-mail: arika@theisraelproject.org
Dor Kaidar
Communications Associate – Media
Cell: 972 54-7004812
E-mail: Dorka@theisraelproject.org
Paul Shindman
Research and Content Associate
Cell: 972 52-807-9187
E-mail: Pauls@theisraelproject.org
Introduction
Israel’s transition from struggling agrarian upstart to pulsing hi-tech superpower is often mentioned with a
certain wistful, nostalgic longing. In reality, though, the pioneering spirit of Israel has remained

4. throughout; what early and recent generations have in common is that both have managed to create
astonishing new blossoms in the place of barren wastelands.
Some have even undergone that transformation personally. Dan Vilenski, for example, picked oranges in
the orchards near his home in Binyamina as a boy. Over the past 40 years, he has led several hi-tech
companies, championed government investment in local hi-tech research, and headed the Israel National
Nanotechnology Initiative.
The unique way in which Israeli hi-tech companies influence global markets is not through their size, but
through their innovation. Rather than establishing the largest companies in a given field, Israelis
repeatedly manage to introduce technologies and create products that set worldwide industry standards.
Through both homegrown companies and local branches of international firms, Israel has been the
source of a long list of breakthroughs in dozens of hi-tech fields.
Israeli communications innovations include the first telephone line doubler, the first commercial voice-
over-Internet phone (VoIP) technology, the first consumer product for instant online chat, and much more.
Israeli biotech ingenuity has produced first-of-its kind technologies in medical imaging and drug therapies,
and Israeli nanotech is creating groundbreaking new materials, textiles, and even artificial body parts.
As with several other hi-tech industries, Israeli communications, biotechnology, and nanotechnology have
benefitted from a crossover from military to civilian technology and significant government funding for
research and development. Of course, it helps that Israel has the highest percentage of engineers in the
world, that it rates fourth in the world in patent generation per capita, and that the government has spent
hundreds of millions of dollars on hi-tech incubators and research grants that have turned academics into
businessmen.
Communications
Israel is an intensely in-touch country, with one of the highest
numbers of cell phone subscribers per 1,000 people in the
world. But communications also accounts for nearly one-fourth
of Israel’s hi-tech exports, including contributions from local
offices of multinational corporations as well as more than
1,000 local start-ups.
Military Communications
The Israeli communications field is a perfect illustration of how
early investment in military technological research led to
outstanding private industry. A prime example is Elbit. Starting
out in the 1960s as a marriage of Defense Ministry research
and the Elron company’s electronic products know-how, Elbit
Primesense adds an element of fun with its fabless
semiconductor technologies. Its sensors allow
computer games to read body movements.
An Elbit flight simulator

5. has grown into the largest non-governmental defense electronics company in Israel. The company and its
subsidiaries have been responsible for some of the most significant advances in both military and civilian
technology, from cutting-edge avionics for fighter jets and the Hermes 450 unmanned aerial vehicles to
groundbreaking medical imaging such as some of the earliest computerized tomography scanners and
Partner, Israel’s first GSM cellular phone company.
Another example is Tadiran. Originally focusing on household appliances such as refrigerators and air
conditioners, Tadiran expanded to become one of the world’s largest suppliers of lithium batteries. It also
developed advanced communications equipment for military use, becoming one of the world’s largest
suppliers of high-frequency and very-high-frequency tactical radio systems. Ituran, one of Tadiran’s
subsidiaries, turned location technology developed originally for the military into a leading stolen vehicle
recovery product and service.
Internet Infrastructure
ECI Telecom has pioneered telephone systems, inventing the telephone line doubler, toll-quality VoIP,
and more. VoIP technology was invented by VocalTec, while AudioCodes has set industry standards for
voice compression technology for transmission over VoIP. Radvision, which developed the core
standard of VoiP that enables voice, picture and data to be transmitted via the Internet, is today a world
leader in technology for video conferencing and multimedia over the internet. Nice Systems, the first
company to utilise VoIP recording technology, is a world
leader in multimedia digital recording solutions for business
interaction management and security. Comverse, which
rose to prominence with a product that allowed police and
intelligence agencies to record data from intercepted
communications, is now a global leader in voicemail
management. Alvarion contributed to the development of
the IEEE 802.111 wireless LAN standard.
The fiber optics systems of BATM Advanced
Communications are relied on by AT&T and Verizon to
make data transmission over their cellular networks smooth,
fast and safe. When consumers make payments through
their cell phones, they are often using mobile commerce
technology designed by Cellenium or software from m-
Wise.
The next generation of communications technology is being developed by companies like ColorChip,
which makes photonic integrated circuits that transmit data at increased speeds and with smaller
components, and EZchip Semiconductor, which makes high-speed network processors for carrier
Ethernet switches and routers.
Satellite Communication and Tracking
Israeli companies operate from space, too. Gilat Satellite Networks uses VSAT (very small aperture
terminal) satellite communications to provide broadband internet, data, and voice services to customers
across the globe. Orbit Communication Systems uses mobile satellite communication in tracking
systems for global aircraft, UAV and missile tracking applications.
Fiber-optic speedpipe

6. Biotechnology
Given the biblical command to “choose life” (Deuteronomy 30:19) and Israel’s intense focus on life
sciences, it may seem only natural that the Jewish state stands at the forefront of biotechnology. After all,
half of the research funding in Israel goes to life science research, and roughly 60% of all scientific
publications are in biology and related fields. But compared to the country’s communications industry,
Israel’s biotech industry is a newcomer, having only started to blossom in the 1990s.
At first, biotech faced unique challenges in the form of huge costs and lengthy periods of research and
development that made it difficult for small start-ups to gain traction. But a high percentage of college
graduates in mathematics, physics, and computer sciences gave Israel the human capital necessary to
develop a burgeoning industry, and a concerted effort by the government to invest (and attract foreign
investment) in Israeli biotech have borne fruit over the past decade. Whereas there were only two biotech
companies to speak of during the 1980s, there are now several hundred.
Pharmaceuticals
Easily the most recognizable of Israel’s biotech firms is Teva
Pharmaceutical Industries. A true juggernaut in the field, Teva is not
only Israel’s leading drug company, it is the world’s largest maker of
generic pharmaceuticals, with global sales in excess of $16 billion in
2010. The company’s proprietary drug Copaxone has become the
world’s best-selling treatment for multiple sclerosis treatment.
Compugen, founded by three graduates of an elite IDF unit less than
20 years ago, uses computer models to identify candidate therapies
and develop proprietary drug therapies quickly. Although it specializes
in immunology and oncology, Compugen has also spun off Evogene,
which uses the company’s predictive computer models to advance
agricultural biotech.
ORLocate from Haldor Advanced Technologies is the
first commercially available system that uses radio
frequency identification (RFID) technology to
methodically track, manage and analyze usage
patterns of surgical instruments, before, during and
post-surgical procedure. The system provides hospitals
and sterilization centers a return on investment,
promotes lean management and enhances patient
safety.

7. Protalix Biotherapeutics creates recombinant therapeutic proteins to treat illnesses as diverse as
Gaucher’s disease (which is particularly common among Ashkenazi Jews) and the effects of weaponized
nerve agents.
Several Israeli companies are working to treat or defeat cancer. Biocancell, founded in 2004 by a
molecular biology professor at the Hebrew University of Jerusalem, develops targeted cancer therapies
that are showing promise in fighting pancreatic and ovarian cancers. Biokine, building on the work of a
Hadassah Hospital stem cell researcher, is designing drugs that it, too, hopes will treat various forms
cancer.
In Ness Ziona, D-Pharm has created new drugs that are proving themselves in advanced clinical trials for
the treatment of stroke, epilepsy, and traumatic brain injury.
Other Therapies
BrainStorm Cell Therapeutics uses stem cell technologies to treat currently incurable
neurodegenerative diseases such as Parkinson’s, ALS and spinal cord injuries.
Galil Medical is a leading cryoablation company, using extreme cold to remove benign and malignant
cancer cells.
Where severe burns char skin and tissue, making treatment of the
healthy tissue beneath difficult, MediWound has introduced a gel that
safely and swiftly removes the damaged tissue so that the underlying
healthy tissue can repair the wound. Similarly, Regentis Biomaterials
develops biodegradable hydrogels that can repair damaged cartilage
and bone.
Medical imaging
Given Imaging has pioneered capsule endoscopy, with a minute pill-shaped camera
that detects gastrointestinal disorders. PillCam is sold in more than 60 countries. Given
Imaging is part of the same Elron conglomerate, mentioned above, that became a
world leader in medical imaging and the world’s largest manufacturer of laser
instruments for various surgeries.
Odin Medical Technologies (founded in Yokneam in 1995 but since acquired and
renamed Medtronic) developed PoleStar, the first intraoperative magnetic resonance
imaging platform designed for a standard operating room. So compact that it can be
wheeled to the patient table and stored underneath the table when not in use,
PoleStar is designed to give doctors diagnostic and navigative imaging during
intracranial operations.
Applied Spectral Imaging, founded in 1993, makes GenASIs – an advanced microscopy imaging
platform that provides state-of-the-art diagnostics for pathology and cytogenic imaging.
Teva has a rich history, which predates
the state of Israel
Polyheal is available in Israel and
Europe
Chrons Disease as
seen up close by
Given Imaging’s
camera in a
capsule

8. Medical Devices
The groundbreaking flexible wire mesh stents that are revolutionizing treatment of heart disease were
designed by Israeli company InStent (which has since been acquired by Medtronic). NESS developed
the Handmaster, a device that emits electrical impulses that stimulate muscular development in the hands
of patients who have suffered a stroke.
Early Sens (photo left) continuously monitors heart rate, respiratory and
movement without ever touching the patients. The contact-free sensing
capabilities and immediate data transfer enable nurses to proactively provide
personalized patient care and potentially prevent adverse events. Through
continuous patient supervision, the system can help staff reduce the risk of
patient falls and effectively work towards decreasing other adverse events,
such as pressure ulcers.
Nanopass is working to take away the anxiety of immunization shots with the MicronJet, a nearly
painless needle that can inject medications into the skin despite being much smaller (and therefore much
less painful) than traditional needles.
Nanotechnology
It’s no wonder that Israel, one of the world’s smallest countries, is at the forefront of nanotechnology. And
it is no secret that President Shimon Peres – one of the world’s “youngest” octogenarians – is an
enthusiastic supporter of Israeli nanotech. In 2009, when Pope Benedict XVI made an official visit to
Israel, Peres presented the pontiff with a copy of the bible etched onto a tiny silicon chip only 1 centimeter
thick. Though the “nano-bible” itself was no larger than a grain of sand, it contained all 1.2 million Hebrew
letters, engraved in gold atoms.
Energy
3G Solar (formerly Orionsolar) is a developer of low-cost solar energy using new generation dye cell
photovoltaics. Dye cells generate electricity from solar energy using nano-sized titanium dioxide particles
impregnated with dye, rather than from silicon or similar semiconductors. The company has substantially
reduced the cost of dye cells and increased the cell size.
Materials
Fulcrum SP Materials is a nanotechnology company dealing with composite materials. The company is
the only one in the world that uses a propriety protein to coat and bind nano-particles to fabrics, and to
disperse nano-particles in matrixes and adhesives and by that, to enhance the performance of such
fabrics and adhesives. The goals are stronger and lighter composite materials.
Medical Applications
Do-Coop Technologies has developed an innovative, nanotechnology-based system called Neowater.
Neowater is a commercially available broad enabling platform upon which research, diagnostics, biotech
and pharma companies can obtain disruptive price-performance results and overcome current technology
barriers with an elegant implementation.

9. Nanonics Imaging is a leading supplier of combined near-field
optical microscopes (NSOM) and atomic force microscopes
(AFM).
Nicast develops superior medical devices from electrospun
nanofabric for a wide range of clinical applications. Electrospun
nanofabric is a biomaterial made of ultra-thin polymer fibers,
with properties that mimic those of human tissues and organs.
Sol-Gel Technologies encapsulates, at room temperature,
active ingredients in micro- and nano-sized glass (silica) matrices as well as nanospheres utilizing a
chemical process called sol-gel.
SoluBest, a drug delivery company developing enhanced and improved therapeutic medicines in several
fields. Solubest is using advanced polymer formulations to prepare nanotransporters for drugs having
delivery or compliance insufficiencies.
Binational Industrial Research and Development Foundation (BIRD)
The Binational Industrial Research and Development Foundation (BIRD) was established by the US and
Israeli governments in 1977 to generate mutually beneficial cooperation between the private sectors of
the US and Israeli hi-tech industries.
BIRD provides matchmaking services between US and Israeli companies, as well as funding that covers
up to 50 percent of project development and product commercialization costs. BIRD’s scope extends to
Communications, Life Sciences, Electronics, Electro-optics, Software, Homeland Security, Renewable
and Alternative Energy and other sectors of the hi-tech industry. Since its inception, BIRD has funded
more than 830 projects in total and more than 235 different projects since 2001 alone.
Nanonics Imaging’s thermo-resistance
Imaging of a chip

10. The BIRD model