BIRD Foundation

The BIRD Foundation, formally the Israel–United States Binational Industrial Research and Development Foundation, is a bilateral organization created by the governments of Israel and the United States to promote commercial technology cooperation. Its central mechanism is the support of joint research and development projects carried out by one Israeli company and one American company. Rather than operating as a conventional venture-capital investor, BIRD provides conditional grants to help companies share the cost and risk of developing innovative products with commercial potential. The foundation emerged from efforts in the mid-1970s to deepen economic, scientific, and technological ties between the two countries. A joint U.S.–Israeli Committee for Investment and Trade began discussions in 1974, while business and technology leaders from both countries separately encouraged closer industrial cooperation. The governments signed the initial agreement establishing the foundation on March 3, 1976. After the United States Congress and the Knesset authorized the necessary funding, BIRD was formally established in Washington, D.C., on May 18, 1977. BIRD began with a jointly funded endowment of $60 million, divided equally between the two governments. The endowment was later increased to $110 million in 1984. The foundation’s funding model generally allows it to cover up to half of the eligible research and development expenses for an approved project, subject to a project ceiling. The participating companies provide the remaining support and must possess the combined technical, managerial, and commercial capabilities needed to develop and market the resulting product. Repayment is normally required only when the supported project produces commercial revenues, linking repayment to commercial success rather than imposing a conventional loan obligation. Projects are reviewed through regular approval cycles, traditionally held twice a year. Applications must come from a U.S.–Israeli company partnership, and the resulting work is expected to lead to a marketable product or service. BIRD’s role can include helping companies identify partners, structure a collaboration, assess technical and commercial feasibility, and finance development activities. The foundation has also supported specialized cooperation through BIRD Energy, a program backed by the U.S. Department of Energy and Israel’s energy authorities. BIRD Energy applies the bilateral model to energy-related innovation and generally conducts its own annual project selection process. According to reference material summarized in the foundation’s Wikipedia entry, BIRD had approved more than 900 projects since its establishment and had provided more than $300 million in grants, equivalent to approximately $500 million when adjusted for inflation. Those projects were estimated to have generated about $10 billion in sales. These figures are cumulative claims rather than annual revenue or profit measures. The reported results have led analysts and policymakers to regard BIRD as a notable example of government-backed, binational industrial R&D collaboration. Governance is handled by a six-member Board of Governors, with three representatives from each country. The U.S. representatives are drawn from the Departments of Commerce, State, and Treasury, while the Israeli representatives come from the Ministry of Economy and Industry and the Ministry of Finance. The board appoints an executive director. Its co-chairing arrangement includes a senior official from the U.S. National Institute of Standards and Technology and the chief scientist of Israel’s Ministry of Economy and Industry. BIRD is therefore positioned between public policy, applied research, and private-sector commercialization rather than as a consumer-facing brand. Its principal offering is the institutional platform through which American and Israeli companies jointly develop and commercialize technology.

BIRD was created during a period when Israel and the United States were seeking stronger economic and technological ties. In July 1974, the two governments established a Joint Committee for Investment and Trade. Its mandate was to explore practical ways to increase bilateral commerce, investment, and industrial cooperation. Discussions continued through 1975 and early 1976, while private-sector representatives from both countries advised policymakers on mechanisms for linking American and Israeli scientific and technology companies. The foundation’s immediate legal origin was an agreement signed on March 3, 1976, by U.S. Treasury Secretary William E. Simon and Israel’s Finance Minister Yehoshua Rabinowitz. The agreement provided the basis for a jointly funded organization dedicated to industrial research and development. It followed a parallel series of private initiatives, including a group formed in February 1975 by senior American and Israeli R&D executives to advocate closer scientific and commercial connections. In March 1976, the Committee for the Economic Growth of Israel was also created as a voluntary organization intended to encourage exports and investment. The U.S. Congress approved legislation providing the American contribution in late April 1977, and President Jimmy Carter signed it on May 4. The Knesset authorized Israel’s share of the endowment during the same period. BIRD was formally inaugurated in Washington, D.C., on May 18, 1977, through an exchange of letters between U.S. Assistant Secretary of the Treasury C. Fred Bergsten and Israel’s ambassador to the United States, Simcha Dinitz. The foundation began with a $60 million endowment, equally divided between the two governments. In 1984, the endowment was increased to $110 million. Its operating model has remained focused on partnerships in which an Israeli company and a U.S. company jointly define, develop, and commercialize an innovative product. BIRD can provide a conditional grant covering up to 50 percent of eligible R&D expenses, subject to the applicable project limit. The companies are expected to contribute the balance and to demonstrate that they have the infrastructure and capabilities required to complete the work. The conditional nature of the support distinguishes BIRD from both ordinary grants and standard commercial loans. Repayment is generally triggered only when the project produces revenues directly attributable to the supported development. This structure allows the public sponsors to share development risk while preserving a commercial discipline: projects must have a credible route to market, and company partners retain responsibility for execution and commercialization. BIRD normally approves projects in two annual cycles, traditionally in June and December. It also operates BIRD Energy, a related program supported by the U.S. Department of Energy and Israeli energy authorities. BIRD Energy applies the same general bilateral cooperation principle to energy innovation and uses an annual approval cycle. Governance is assigned to a six-member Board of Governors, with equal representation from the two countries. The U.S. side includes representatives associated with the Departments of Commerce, State, and Treasury. Israeli representation includes the Ministry of Economy and Industry and the Ministry of Finance. The board appoints an executive director, while co-chair responsibilities are associated with senior technology and economic officials from the two governments. The available reference material does not provide a complete, current list of officeholders. Over its operating history, BIRD has become a prominent example of public support for cross-border applied research. Reference material reports more than 900 approved projects, over $300 million in grants, and estimated project-related sales of approximately $10 billion. Those results are cited as evidence that a jointly funded institution can connect national innovation systems with private-sector commercialization. BIRD’s long-term identity is consequently institutional rather than consumer-oriented: it is a funding and partnership framework for Israeli and American companies developing technology for international markets.

• 1984

  Endowment expanded

  [1]BIRD Foundationen.wikipedia.org

  The jointly funded endowment was increased to $110 million.

• 1977

  BIRD Foundation formally established

  [1]BIRD Foundationen.wikipedia.org

  Following legislative authorization in both countries, BIRD was formally established in Washington, D.C., with an initial $60 million endowment.

• 1976

  Founding agreement signed

  [1]BIRD Foundationen.wikipedia.org

  The U.S. and Israeli finance ministers signed the initial agreement providing for the creation of the binational R&D foundation.

• 1975

  Private-sector technology cooperation group formed

  [1]BIRD Foundationen.wikipedia.org

  American and Israeli R&D executives organized a private-sector initiative that advised the governments on closer scientific and industrial links.

• 1974

  Joint Committee for Investment and Trade established

  [1]BIRD Foundationen.wikipedia.org

  Israel and the United States created a bilateral committee to investigate ways to strengthen economic and commercial relations.

• BIRD Energy added to the bilateral innovation framework

  [1]BIRD Foundationen.wikipedia.org

  A specialized program began supporting Israeli–American cooperation in energy technology with backing from the relevant U.S. and Israeli authorities.

A government-backed bilateral platform that reduces the cost and risk of commercial technology development by connecting Israeli and American companies in joint R&D projects.

• Conditional industrial R&D funding · 1977

  BIRD Project Grants

  BIRD Project Grants support joint development by one Israeli company and one U.S. company. Funding can cover up to half of eligible R&D expenses, within the applicable project ceiling. The partners must supply the remaining resources and demonstrate the ability to develop and commercialize the resulting product. Repayment is generally tied to revenues generated by the supported project, making the instrument a risk-sharing mechanism rather than a conventional loan.

• Energy technology collaboration funding

  BIRD Energy

  BIRD Energy extends the foundation’s bilateral R&D model to energy-related innovation. It is supported by the U.S. Department of Energy and Israeli energy authorities and brings together companies from both countries to develop technologies with potential commercial and energy-sector applications. The program uses a separate annual project approval process.

• 1984

  Expanded the foundation’s endowmentStrategy

  Background

  After the foundation had operated for several years, the two sponsoring governments increased the capital available for bilateral industrial R&D.

  Action taken

  The endowment was increased from its original $60 million to $110 million.

  Aftermath

  The larger endowment strengthened BIRD’s capacity to continue funding cross-border technology projects.

  Endowment. $60 million → $110 million (1984)

  Source

• 1977

  Adopted a bilateral company-partnership funding modelStrategy

  Background

  The foundation was created to turn government-to-government economic cooperation into practical industrial collaboration between private companies.

  Action taken

  BIRD established a process requiring each supported project to involve an Israeli company and an American company, with the foundation sharing development costs through conditional grants.

  Aftermath

  The model became the foundation’s defining operating mechanism and was later extended to specialized programs such as BIRD Energy.

  Initial endowment. $60 million (1977)

  Source

1. 1BIRD Foundationen.wikipedia.org
2. 2BIRD Foundation official websitebirdf.com