A study commissioned by the New England-Israel Business Council (NEIBC) and released in December reports that companies with Israeli ties have been a driving force in the Massachusetts economy.
The research was conducted by global strategic consulting and research firm, Stax Inc. and examined roughly 200 Massachusetts companies with Israeli ties over the three-year period between 2010 and 2012, according to a press release from the NEIBC.
During this time period, the revenue of these Israel-founded companies enjoyed 12.6 percent in compound annual revenue growth, expanding three times faster than the state’s overall economy, and twice as fast at Massachusetts IT and professional sectors.
In 2012 alone, Israeli-connected companies brought in $6.2 billion in revenues in the state, while employing nearly 6,700 workers, the researchers noted.
Israel has long been known internationally as the “Startup Nation” due to its strong track record of innovative advancements, specifically in the information technology, medical device and software sectors, reports the Boston Globe.
“It’s the new markets that will provide the turbocharge,” David Goodtree, author of a whitepaper describing the research, said according to The Globe.
At the same time, Massachusetts has made itself an attractive second home for Israeli companies looking to leave the smaller Middle Eastern sphere in search of bigger and more lucrative markets.
Massachusetts Governor Deval Patrick is clearly aware of the potential opportunities afforded by this special relationship, reports The Globe. Governor Patrick, who was present at the unveiling of the NEIBC research, personally led a trade mission to Israel in 2011.
“There’s a lot compatible between Massachusetts and Israel,” Patrick said during the presentation of the study. “Arguably brainpower, in both cases, is our biggest natural resource.”
In the NEICB’s whitepaper, consultant Goodtree notes that the Israeli connection has the potential to become more financially influential. But there’s a catch.
“The Massachusetts-Israel economic relationship is stronger than ever before, built on a history of collaboration and mutual benefit,” Goodtree writes, before warning that the state must stay proactive if it wants to maintain these benefits longterm.
“To regain the status of preeminent partner, Massachusetts and its senior executives in business, government, and academia can seek opportunities to tell the state’s story on-the-ground in Israel, via trade missions, industry conferences, academic symposia, one-on-meetings, marketing campaigns, and other vehicles,” the paper concludes.