The U.S.-Israel Technology Alliance
A focused mapping of the legal and financial structures that will power the next decade of bilateral innovation between America and Israel.
Building the Financial Architecture of Alliance
The proposed U.S.-Israel technology alliance represents an unprecedented commitment to bilateral innovation cooperation. With a 10-year memorandum of understanding and $3-4 billion in annual joint investment—split equally between American and Israeli contributions—this initiative demands careful consideration of legal frameworks, funding mechanisms, and governance structures.
Crucially, not all investment will come from government coffers. The architecture must include mechanisms that catalyze private investment at levels matching or exceeding public commitments, creating a multiplier effect that amplifies the alliance's impact across dual-use technology sectors.
Equal Partnership
50/50 funding commitment ensures neither nation dominates decision-making
Public-Private Synergy
Government investment catalyzes at least equal private sector participation
Strategic Focus
Prioritizing dual-use technologies that serve both nations' security interests
Institutional Durability
10-year MOU provides stability beyond electoral cycles
Four Pillars of Alliance Architecture
Each dimension addresses critical questions that must be resolved to build durable, effective bilateral institutions.
Existing Bilateral Funds
BIRD, BARD, BSF and other established U.S.-Israel cooperation frameworks that could be expanded or serve as models.
Global PPP Models
Lessons from successful bilateral funds and public-private partnerships worldwide that can inform our approach.
New Investment Mechanisms
Proposed structures for dedicated funds, long-term investment vehicles, and private capital catalyzation.
Legal & Regulatory Framework
Critical structural, regulatory, and compliance considerations for bilateral technology investment.
Six Decades of Innovation
From basic research to a strategic alliance—the evolution of a partnership.
BSF Established
Binational Science Foundation created to fund basic research, planting the seeds of scientific cooperation.
BIRD Foundation
Industrial Research and Development Foundation launches, bridging the gap between lab and market.
BARD Created
Focus shifts to agricultural innovation, addressing shared challenges in food security and arid climates.
Yozma Program
Israel kickstarts its VC industry with government-backed funds, creating the "Startup Nation" engine.
$38B MOU
Historic 10-year military aid package signed, setting a precedent for long-term bilateral commitment.
Tech Alliance MOU
A $3-4B annual framework to secure technological superiority through equal 50/50 partnership.
Investment Scale
The proposed $3-4 billion annual investment would make this among the largest bilateral technology cooperation agreements globally.
- $1.5-2B annually from U.S. sources
- $1.5-2B annually from Israeli sources
- Minimum 1:1 private capital matching
- Potential $6-8B annual ecosystem impact
Structural Options
Multiple pathways exist for structuring bilateral investment, each with distinct advantages for governance and efficiency.
- Expand existing foundations (BIRD model)
- Create new bilateral investment authority
- Establish sovereign wealth fund mechanism
- Design hybrid public-private structures
Private Capital Catalysis
Success depends on mechanisms that multiply government investment through private sector participation.
- Government-backed fund-of-funds
- Tax incentives for bilateral investment
- Loan guarantees and first-loss capital
- Co-investment rights and deal flow
Shape the Future of Israeli-US Innovation
We're actively developing this framework with policymakers, investors, and technologists. If you have expertise in bilateral investment structures or want to contribute to this initiative, we want to hear from you.