Contributions of $2.4B in revenue and 5,920 jobs help drive the local MA economy; Competition from other states to lure Israeli-related businesses grows
October 19, 2010 (Newswire.com) - Stax Inc., a global strategy consulting firm, revealed today the findings of a new study: "The Massachusetts-Israel Economic Relationship". The study analyzes the far-reaching impact of Israeli businesses and innovation on the Massachusetts economy. It also details the key drivers that generated and sustained the long-standing relationship between the Commonwealth and Israeli business leaders, as well as outlining the growing competition from other states to attract Israeli innovation.
According to Stax's new study, Israeli business innovation contributes to Massachusetts through the revenues and employment opportunities it generates for the local economy. For example, in 2009, Israeli-founded businesses and technologies in Massachusetts generated $2.4 billion in direct revenue. Using government multipliers, this results in $7.8 billion in direct and indirect revenue throughout the local economy. These same businesses directly generated 5,920 jobs in Massachusetts, with 50% of those focused on information technology, 29% on life sciences, and the remainder on other industries such as healthcare and pharmaceuticals. Including the indirect impact, using multipliers, brings total job creation to 21,500 in Mass.
According to Stax's CEO, Rafi Musher, "The data shows successful partnering between U.S. and Israeli companies in tech and healthcare industries with considerable end-market growth. U.S. executives like how bright and resourceful the Israeli teams have proven to be, especially given how much innovation they produce with limited resources. U.S. companies, and those with capital, are increasingly investing in Israeli R&D and products, distributing them globally, and generating domestic import income for the U.S."
The new Stax study, which was commissioned by the Combined Jewish Philanthropies, surveyed Massachusetts business executives who work at companies built on Israeli innovation and entrepreneurship. Additional key findings in the report include, but are not limited to:
• Nearly 100 companies in Massachusetts are founded by Israelis or offer products based on Israeli technology.
• Israeli entrepreneurs chose Massachusetts over other U.S. destinations to launch or grow their enterprises due to the deep talent pool, opportunity to be part of an industry cluster, historical relationship, and outstanding business infrastructure (research-heavy companies and those that support them).
• California and Massachusetts remain the most popular choices for Israelis due to its industries and historical relationship. However, some less established cities like Atlanta are competitively seeking Israeli business.
• Most executives who participated in the study saw other states as having potential to compete with Massachusetts for their business. (e.g., tax incentives, relocation expense subsidies, and trade missions from states such as California, Georgia, Virginia, New York, New Jersey and Maryland.)