Trump could oversee the most innovative periods during his presidency

When you say Israel-US relationsyou immediately think of issues such as security and diplomacy. These are undoubtedly important, but these relationships have many more areas and layers. The economic-business relationship between the countries is crucial to the daily lives of all Americans and Israelis.

So how does a Middle Eastern economy of 10 million people affect a wealthy economy of 340 million people?

Israel is a source of enormous and groundbreaking innovation in a wide range of areas. Sometimes the impact of a single technology is so large and widespread that it simultaneously changes the reality for the individual and the national economy.

If President-elect Donald Trump wants to create impact, he must strengthen innovation ties between Israel and the US immediately after the inauguration.

The main emphasis and effort should be on:

• Creating significant incentives for investors, such as ‘relative additional government investment’. If the investment is successful, the investor can “buy out” the investment from the government on favorable terms. If the investment fails, the government loses more than the investor. Another option is tax incentives.
• Relax regulations – create faster routes without sacrificing safety, efficiency, ethics, etc. Some processes are slowed down for no reason. Shortening it will contribute to faster and cheaper penetration of new technologies into the US market.
• Encourage joint investments – American and Israeli joint ventures have a greater chance of success. Venture capital funds and incubators involving investors from both countries can maximize the integration of Israeli R&D along with the principles of the US market.
• Landing Pads – Technologies from Israel must overcome many hurdles before they can enter the US. The establishment of landing pads that include a US business, legal and regulatory framework should be encouraged. Just as there are incubators for the development of technology, there must be incubators for the development of American businesses.

INNOVATION EXPERTS visit Kibbutz Magen, near the Gaza Strip. (4/20/2024) (credit: MOSHE FILBERG)

HOW WOULD ALL of this affect the pocketbooks of Pennsylvania citizens?

Take, for example, a technology that improves the health of flocks or chicken flocks and improves mortality rates, or reduces the need for expensive drugs. Another development could guarantee a longer shelf life of fruit and vegetables and prevent depreciation and loss. Efficient solar energy technology can reduce electricity bills in any home. There are hundreds of other examples.

And what about the impact on the economy of the top deciles?

A survey of 500 companies founded by non-US citizens that became unicorns in the US between 1997 and 2019 reveals an astonishing statistic: India leads with 90 companies and Israel is second with 52 unicorns. Canada, Great Britain, China and Germany are far behind. When you consider that India is 140 times bigger than Israel, you understand that Israel is the largest producer of unicorns in the US.

And apart from economics, does it have any other values?

If saving a life is a value, then yes. Hundreds of medical technologies invented and developed in Israel save patients in the US every day. Cyber ​​protection is another example. There are dozens more.

There is a war going on; why invest in companies from Israel?

Because the Israeli innovation scene is alive and well. The entrepreneur goes to the battlefield and returns to the laboratory with yet another new idea. He is someone who can take risks, be a team player and improvise. He has courage and courage that are not taught at Harvard or MIT.

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The war will end and will be followed by prosperity. The new president will have a great and wonderful opportunity to be responsible for one of the most extraordinary and powerful periods of the current century in terms of innovation.

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The saying, “It’s the economy, dumbass” is no longer true. From now on you have to say, “It’s the technology, you genius.”

The writer is CEO of a business development consultancy, a member of the Israel Export Institute’s life sciences advisory board, and has held leadership positions in the Israeli healthcare system and as a consultant for UNICEF in Ukraine.