From guns to briefcases.

Israel Commercializes Defense Technology With Help From The Technion

The Cold War is over and there could be peace in the Middle East. Many would expect an era of peace to have a severe effect on Israel's economy which is laced with defense-related industries; and yet, Israeli exports for 1993 increased by 10% while world trade grew by only 3%.

Israel's drive for survival has meant that military strength has been closely tied to economic strength, and the key factor in both has been its technological prowess.

Israel's future now lies in high-quality science-based products, processes, and services, produced efficiently at low cost, sold in global markets at competitive prices with highly sophisticated marketing techniques. Highly skilled, market-oriented graduates of the Technion-Israel Institute of Technology -- Israel's only comprehensive technological university and its major center for applied scientific research -- have fueled both the defense and civilian high-tech industries, both of which have made Israel a key technological player in the emerging global village. Technion graduates have also shared their expertise with defense-related firms to expand and diversify into civilian products, helping Israel to achieve the impossible: It is successfully changing the balance of an economy adjusted for war to an economy ready for peace. The most crucial factor remains the technological excellence of Israel's work force.

One example of technology transfer from military to civilian use is the Technion's Fast Hole Digger. Taking technology originally used to plant mines, scientists from the Faculty of Agricultural Engineering led by Professor Dan Wolf have produced a tree-planting system which can dig 2000 holes an hour. The new Technion subsidiary of the Research and Development Foundation, Agtech Ltd., has already struck a deal worth $10 million with a Brazilian company which is using the Fast Hole Digger to replenish the rain forests. This is an example of beating swords into ploughshares.

But the Technion's contribution to the changing times plunges even deeper into the Israeli economy. Technion graduates work at companies like Elbit LTD., a leading computer system corporation and Elscint Ltd., which specializes in medical imaging. Both companies were founded by Technion graduate Uzia Galil, chairman of the board, and both are now trading on Wall Street. Elbit's diversification into civilian markets in the 90s has achieved remarkable success. Elbit profits were up 36% to $41 million in 1993. Elscint generated $235.5 million in sales. Income from various new fields totaled $134.6 million -- which Elbit attributes to its successful entry into the color television market. But Elbit's activity in the defense sector is not shrinking: In 1993 it wold $230 million in defense-related electronics compared to $194 million in 1992.

Rafael, another major player in the Israeli defense industry, recently unveiled the BIPSAT -- a briefcase portable satellite communications terminal. "BIPSAT is a good example of how Rafael uses its experience in defense to find a place in civilian markets," says Noah Shachar, Rafael spokesman. Another conversion applies Rafael's worldwide reputation for defense-related radar products into a family of civilian products including an air traffic control solution to the needs of medium- and small-sized airports. Built from high performance digital technology on a broader scale, the radar is applied to a 30 nautical mile radius. "The secret behind this and our other products is our highly-trained personnel. A majority of them received the excellent training of the Technion and their know-how is the foundation of our success," says Shachar. Rafael is also utilizing its expert work force to set up production lines abroad.

"Even in an era of peace, Israel will still need a strong army," explains Technion Professor Shlomo Maital of the Faculty of Industrial Engineering and Management. "There remains a major world market for proven, cost-effective, state-of-the-art weapons. We should continue to emphasize the world-class core competency of the Israeli defense industry and aggressively pursue export markets." The Israeli aviation firm Cyclone recently proved that Israel remains a first stop for defense equipment when it struck a deal with McDonnell Douglas in the United States to make at least $10 million work of components for F-18 fighter planes.

The Technion, which educates over 70% of Israel's professional, industrial, and high-tech work force, is committed to promoting technological excellence in all sectors. Founded in 1924, Israel's oldest institution of higher learning has been closely integrated with the country's historical development, commanding a worldwide reputation for its pioneering advances in such fields as aerospace, electronics, computer sciences, laser technology, fiberoptics, and biotechnology. As a vital national resource on which both industry and government rely, the Technion's accomplishments reflect on every aspect of life and productivity in Israel. Israel's place at the forefront of science-based industry and future economic independence depends on the Technion. What Israel and the Technion can achieve will be limited only by the availability of resources and the imagination that propels their use.

"Our aim is to produce graduates with the technological and scientific expertise to contribute to the development of products for both the civilian and defense markets," says Technion President Professor Zehev Tadmor. "The Technion always will be committed to Israel's security and its economic independence, which often amount to the same thing."

Bonnie Glass is assistant regional director of public relations/western division for the American Society for Technion Israel Institute of Technology.