Next US-Israel agreement should expand joint innovation

The United States and Israel are poised to negotiate a successor agreement to their 2016 memorandum of understanding, a $38 billion deal set to expire in 2028. Discussions are already underway, signaling a commitment to continued collaboration.

Recent developments indicate a clear direction toward enhanced joint innovation. Israel became the first nation to sign a joint declaration with the U.S. on artificial intelligence and critical technologies. Furthermore, Section 224 of the House defense authorization bill proposes a standing framework for joint development and co-production in critical sectors such as missile defense, AI, autonomous systems, and cybersecurity. The question remains how broadly this framework will be applied.

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The opportunity now is to extend that approach beyond defense and create additional mechanisms for collaboration in civilian and dual-use technologies.

The article argues for extending this cooperative approach beyond defense into civilian and dual-use technologies. It highlights the Binational Industrial Research and Development Foundation (BIRD) program, established in 1977, as a successful model. BIRD, equally funded by both governments, connects the American and Israeli innovation ecosystems. Over its history, it has supported over 1,200 joint ventures, invested more than $450 million, and generated over $10 billion in sales, primarily benefiting the U.S.

This model demonstrates the mutual benefits of such partnerships. American companies gain access to Israeli technological expertise and research capabilities, while Israeli firms benefit from U.S. market knowledge, manufacturing capacity, and commercial infrastructure. The BIRD program's success provides nearly five decades of evidence that governments can facilitate collaboration, enabling companies with complementary strengths to share development risks and bring technologies to market together. The author suggests this principle can be applied more widely to fields like artificial intelligence, quantum computing, biotechnology, energy, water, food security, and advanced manufacturing, many of which have both civilian and security applications.

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Governments can help companies with complementary capabilities find one another, share development risk, and bring technologies to market together.