Global Business Perspectives

Why Israel?

For starters, it’s a high-tech powerhouse and global center of innovation. A national equivalent to a start-up company, Israel devotes the world’s largest percentage of its GDP to researching and developing innovative products, services and technologies destined for international markets.

As a result, 16% of the Fortune 500 companies have their R&D operations in Israel. Although a desert nation of only 7 million with limited natural resources, Israel’s highly-educated workforce has enabled it to innovate around scarcity resulting in more than 4,000 patent filings in the U.S. last year alone.

Per Capita GDP of $26,200 in 2006 and is one of the most developed countries worldwide.  The U.S. is Israel’s largest trading partner, in fact, Israel is highly integrated into the American economy and has the most NASDAQ-listed companies after the U.S. and Canada. Israel’s largest trading partner is the U.S. and it continues to fuel strong demand for American products, services and technologies—-particularly related to companies involved in the following industries:

• Advanced manufacturing
• Aerospace/defense (including homeland security)
• Clean tech and renewable energy
• Higher education
• Information technology and communication software
• Intelligent transportation systems
• Life science/medical

Israel, has a similar culture, language, and business practices make doing business in Israel ideal for many U.S. companies.  Did you know that Israel is the only non Muslim country in the Middle East? 

Some tips for doing business there:

• English is the language of Israel’s business culture. 
• Israelis are very straight forward and not formal. 
• Make appointments well in advance, expect your appointments to be tardy, keep you waiting and to take calls during meetings.
• Business dress should be conservative and more formal. 
• They value relationships before doing business.  But they do value short term results. 

Currently, Israel is seeking to raise its global profile, and is actively exploring investment opportunities in the U.S.

A Detroit area organization Automation Alley is leading a Trade Mission to Israel with matchmaking and help from the Department of Commercial Services in October.