Informing
Policy
for Progress

Cooperation Policy in Business and Science with East Asia

Within the national policy framework to expand cooperation with the East, an issue that was discussed in the past has been raised again in practical terms, namely the collaboration between Israeli industry and leading industries in China and India. Two large Israeli companies were acquired, during 2011, by leading companies of China and India; the company “Makhteshim Agan” was acquired by Chem China and the company “Taro” were acquired by Sun Pharma, a well-known Indian company.
On the one hand we should view positively the opportunity of such acquisitions, which allows the flow of capital to companies and the opening of Asian markets for the Israeli companies more effectively, while preserving, at least the first stage, the full employment in these industries.
On the other hand the fear of potential loss of control of scientific knowledge and of vital marketing and sales has strengthen and may later ultimately lead to a loss of assets to the acquired companies and consequently reduce potential openings for employment.

At this point we prepared a research proposal to study in depth the implications of purchasing of Israeli companies by Indian and Chinese industries in order to draw practical suggestions for the proper national policy.  Dr. Iris Shafir made an offer which relates to the Indian industry and Yoni Glickman made a proposal which relates to the Chinese industry. In these proposals we plan to engage the Chinese and Indian perspective on the one hand and Israeli interests, business and global considerations of constitutional considerations on the other hand and try to offer a coherent national policy on the subject.

The intention is that the work will be done in cooperation with the Ministry of Trade and Industry, the Department of Invest In Israel. We are currently discussing the options and submitting proposals for their consideration.

During 2011 Dr. Gilead Fortuna lectured in the MBA course at the University of Haifa on business policy in China, in cooperation with a guest lecturer from the University of Fudan from China.

In April 2011 we hosted at Neaman Institute a full day visit of Professor Brahmachari, CEO of the Ministry of Science and Director of Indian government research institutes. At the end of the meeting we agreed on strengthening cooperation and exchange of researchers on innovation.

During 2012:

1. India: The final report (Hebrew) on the Samuel Neaman Institute’s extensive activities, whose objective is to strengthen the strategic cooperation between Israel and India, was distributed. The report summarizes the rationale, framework, and findings of a research program devoted to the study of the potential inherent in commercial and scientific cooperation between Israel and India, with an emphasis on commercial and scientific innovation.

2. Alongside the drafting of the summary report, a process is taking place that involves promoting some of the project’s conclusions and using the lessons that have been learned to find ways to strengthen the ties between Israel and India by leveraging the new trend of Indian companies purchasing Israeli companies and attempting to connect to Israeli innovations being developed in universities, incubators, and start-up companies.

3. China: Participation at a convention for business companies led by Poalim Capital Markets, where we contributed our experience, primarily from the perspective of Teva. Our proposals focused on searching for further leveraging in continuance to the purchase trends of Israeli companies and a-technologies purchases from Israel.

 

Watch the Slideshow on the subject, by Dr. Gilead Fortuna.