Year 2009 - the last year of the first decade in the 21st century - will be remembered as an unusually “green” year.
At the outset of the year, The American Recovery and Reinvestment Act of 2009 (“Stimulus Package”), which includes billions of dollars in investments related to clean energy, transportation and other environment related investments, initiated a ripple effect on the global state of mind. The U.S. economic action and the expectation that similar measures will be taken by other governments energized an entrepreneurship wave, driving Cleantech investments by the venture capital community in the U.S. and in Israel. The year ended with the Copenhagen Accord, the effect of which, on business decisions and subsequent investments is still to be seen.
BIRD is well positioned to face this trend. Based on legislation adopted in the U.S. on Energy Security and Independence (2007) and on Israeli government decisions for Renewable Energy development (2008), U.S-Israeli cooperation in renewable energy industrial R&D was launched in 2009. Within the framework labeled “BIRD Energy”, the Foundation cooperates with the Israeli Ministry of National Infrastructures and the U.S. Department of Energy to promote and support joint bilateral Energy Efficiency and Renewable Energy projects.
Year 2009 was also a fertile year for TRIDE, the U.S.-Israel-Jordan R&D cooperation, managed by BIRD. This program helps building bridges between companies in Israel and Jordan which jointly with a U.S. company develop a product and bring it to the global market. Both Israel and Jordan have already committed to the continued funding of TRIDE.
The ongoing effect of the difficult economic situation was evident in BIRD’s activities. We saw some companies rapidly deteriorating and falling, others struggling to continue operations by significantly reducing their workforce. At the same time the large inflow of proposals we received during the year can be interpreted as a positive sign, since it means that Israeli and U.S. companies continued to invest heavily in innovation. Another factor affecting the number of submitted proposals is – most probably - the lack of investing enthusiasm shown by main players, such as venture funds. Thus young Israeli companies have been more eager for alternative sources of funding.
The lowering of global interest rates has caused the reduction of BIRD’s funding capability. In this context, at the end of 2009, we received very good news from the Israeli Government, which decided to increase BIRD’s endowment, contingent on a matching increase from the U.S. government. This will be a main objective of our 2010 activities, since the Foundation’s funding capability was last increased 25 years ago. During this relatively long period, inflation and other factors have reduced the “buying power” of the dollars available to fund projects. The recent action by the Israeli government is an indubitable recognition of BIRD’s contribution to U.S.-Israel civilian collaboration and to their innovative economies. We have a good basis to believe that similar action will follow from the U.S. government
Another year behind us, a “green” year that also brought signs of economic recovery, specifically in the U.S. and in Israel. This optimistic outlook is somewhat restrained by the uncertainties surrounding us. One thing I can say for sure: the BIRD team will continue to serve U.S. and Israeli companies with dedication, in their pursuit of high quality, fruitful partnerships.
Eitan Yudilevich, Ph.D.
Executive Director
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