As if Colorado needed more evidence of the economic impact potential of deepening its business and commercial relationship with Israel, a new report released by the Hudson Institute shows how Israel’s capacity for innovation is indispensable to building and maintaining America’s military and economic advantages. Moreover, as the report outlines, Israeli investment in the United States has tripled over the past decade to nearly $24 billion—and shows no sign of retreating.
The Hudson Institute policy memo on U.S.-Israel economic cooperation explores Israel’s technical edge and describes how collaboration in artificial intelligence, cybersecurity, and other emerging technologies delivers tangible returns for the United States.
Expanding on the memo, the Institute's Center for Peace and Security in the Middle East hosted a discussion between Israeli Minister of Economic Affairs Noach Hacker and Dr. Michael Doran to examine the economic foundations of the United States–Israel partnership and its growing importance to American prosperity and competitiveness.
Read the full report here and watch the discussion here.
Highlights: The economic case for US-Israel partnership is neither sentimental nor irrational. It is structural and becomes more important with each passing year as Washington seeks to counter China’s growing dominance across the Middle East and Central Asia. Israeli innovation extends America’s technological frontier. R&D centers in Israel produce capabilities that flow directly into American supply chains. Israeli investment bolsters America’s domestic economic prosperity. Israeli-founded companies create high-value American jobs in sectors that determine long-term competitiveness. Israel’s technological diplomacy gives the US-led order a competitive instrument in developing states that seek alternatives to Beijing. Israeli capabilities in AI, cyber defense, water management, and energy diversification operate within an American-anchored framework, so vulnerable countries do not have to depend on China.
Just how much are U.S. states benefiting from their economic relationship with Israel? Don't take it just from us. The United States - Israel Business Alliance lays out the facts here in their economic impact reports on California, Florida, Virginia, Massachusetts, and New York.
| 
