FOREWORD Basic Research--A Vital Need for the Israeli Economy by Gideon Patt, Former Minister of Science and Development 1985-1988

FOREWORD Basic Research--A Vital Need for the Israeli Economy by Gideon Patt, Former Minister of Science and Development 1985-1988 The tremendous impact of science and technology on mod- ern society has led to an increasing awareness of the need for greater government involvement in national science plan- ning and policy making, as well as in the promotion and support of applied research in areas of national priority. This is particularly true for small countries, and even more so for Israel, whose limited natural and manpower resources de- mand that the country make the most of its intellectual assets. The government of Israel has consistently demonstrated a keen re- gard for the importance of scientific and technological activities for the advancement of its national goals. As a consequence, the government allocates a relatively high percentage of the national budget to the support of research and development (R&D), initiates and encour- ages R&D in areas of national concern, and devotes considerable effort to their integration into the broader economic and social context. Examples of national priority R&D areas that are or have been ma- jor objects of government support include water desalination, solar energy utilization, natural resource utilization, agricultural and industrial development, environmental quality control, and public health. The government’s scientific infrastructure responsible for the implemen- tation and coordination of policy has undergone a very significant development, necessitated by the constantly expanding role of science and technology in every facet of the national economy and the general welfare. The Scientific Council, entrusted with national responsibility for science, was established in 1949, only one year after the State itself came into existence. More recently, a manifest need to coordinate and repre- sent the national science effort at the Cabinet level resulted in the es- tablishment of the Ministry of Science and Development in 1982. Until a few years ago, high-tech industry was a dream and a hope; the actual scope of such activity was meager. The vast majority of Israeli scientists preferred academic seclusion and were occupied with basic research, which they regarded as more prestigious than applied science. But today this viewpoint has been replaced or at least balanced by an entirely different attitude, which sees technological development as the only rational way to deal with the challenges confronting the State. With- out constant innovation in defense, industry, agriculture, energy, medicine, and other fields it will be impossible to supply the ever-growing needs of the population. Moreover, it will be equally impossible to meet the keen competition of world markets, not only of highly developed countries, but also of developing countries that rely on mass production with read- ily available cheap labor. Israel, with its small population, is at a disad- vantage and so must develop and utilize its brainpower to the utmost. Government policy makers, planners, and key figures in the national economy have been, and still are, directly involved in this process. During the last twenty years, and especially in the last decade, a scientific and technological infrastructure has been built with vision and diligence; this has had impressive results. New research institutes and institutions of higher learn- ing have been established, and existing institutions have been enlarged. Relevant ministries have established Research Administrations and Sci- entific Bureaus to advance technological development in the areas for which they are responsible. The national and interministerial activities are promoted by the National Council for Research and Development. The budgeting allocations for R&D clearly reflect the importance of science to the nation. In 1970, $15 million was invested in scientific R&D. By 1985 the sum was $200 million. At first, money was given mainly to basic research. Now this is no longer so. The allocation for applied research has become increasingly and proportionally larger. This is especially true in the defense sector, which has developed certain industries whose production equals that of their counterparts in highly developed countries. Independent R&D in the defense sector continues to contribute to reducing dependence on external sources, and provides a substantial spin-off for civilian products. This phenomenon has also strengthened the country’s economy. The sophisticated products produced in this sector are also a source of considerable export income. In the future, we must increase exports of our best products, thus enhancing our international standing. Utilization of our scientific manpower potential must not be neglected. If Israel wishes to prevent a brain drain and at the same time to attract scientists from developed countries, suitable conditions must be created to keep the Israeli scientists from leaving for greener pastures and also to encour- age those living in the Diaspora to return home. It is my conviction that this matter is urgent, and that we must tackle it with the best of our resources. The enormous technological advances in the developed countries oblige Israel to make every effort to cooperate with other countries in joint en- deavors in basic research. The Ministry of Science and Development is fully aware of the importance of strengthening scientific links with as many countries as possible. It will continue to increase the scope of coopera- tion, and will make efforts to mobilize funds both at home and abroad to finance research in Israel. The framework of international agreements will be expanded and additional binational research funds will be established. By widening our existing R&D infrastructure, both in basic and in applied sci- ences, we will be able to intensify our links with the Third World by exporting know-how and technology. There are both diplomatic and economic advan- tages to be gained which have special significancefor Israel. Thispolicy was implemented in the sixties with the African states and could be expanded today. The Ministry of Science and Development will, in the future, devote its best efforts to increasing national awareness of the importance of R&D. The more we succeed in doing this, the more we will reap the benefits. It is perhaps one of the best ways of strengthening the economy, guar- anteeing security, and providing a better future for the people of Israel. INTRODUCTION The Chinese are convinced that Israel’s agricultural progress and achieve- ments during the first quarter century of the country’s existence can serve as a model for its own development. Indian visitors to Israel express envy for its ability to cultivate land and feed its people. They contrast this advanced level of agricultural development with the plight of millions of Indians who are living under starvation conditions. Airport security experts come to Israel to learn how its people are coping with the problems of terrorism and how its national airline provides safety for its passengers. Alternative sources of energy, such as geothermal applications or the use of solar energy for laser research, are either highly developed or at an advanced stage of research--again, a source of deep interest on the part of the international scientific and industrial community. Diamond factories operated with auto- mated equipment are maintaining a competitive edge for Israeli polishers who must compete with low-wage producers. Belgian diamond manufac- turers have expressed concern about the advantage which the Israelis have gained as a result of this technological breakthrough. And then to top it off, Israel has become the world’s eighth member to join the exclusive club of nations who have successfully built and launched a satellite into orbit. What is it that drives Israelis to reach this level of achievement? The answer is rooted in part in the tradition of intellectual curiosity and analy- sis, which is an aspect of Jewish culture. It is a tradition that emphasizes education and that has produced, out of all numerical proportion, outstand- ing scientists and inventors. This age-old reverence for education has found expression in the development of a good Israeli public school sys- tem and excellent universities and institutes of science and technology. Even more likely, the technological accomplishments may be a result of the innate stubbornness, resilience, and creative drive of a polyglot people. Because of the multi-national mix of the population, many of the researchers have brought with them a variety of experiences and points of view acquired in different parts of the world. All are joined together by the determination to create a country which will become strong in spite of a lack of natural resources and of hostility on the part of most of its neighbors. This need for national security has led to the development of new defense technologies. Ambition for a better quality of life and higher standards of living has led to the creation of an export-driven economy. And most Israelis are aware that the ability to sell and succeed in the international marketplace is dependent on their products being more innovative and better priced than those of the country’s competitors. In 1975, I undertook to provide broad English-language coverage on all topics related to Israel’s science-based industries. The decision to do so, however, was easier to make than to implement. While Israelis are known worldwide for their bravado, their reticence in discussing their business activities is nearly as great as the traditional silence of the Secret Service. To get at the facts, to get to know the individuals who are key to Israel’s technology, took many years of patience and, sometimes, frustration. During the course of 1988, a year in which Israel celebrated 40 years of in- dependence, I initiated and co-sponsored the Inaugural Conference of Isra- el’s High-Technology Industry.

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