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Aaron Kaplowitz<\/p>\nOn March 16, the United States Israel Business Alliance (USIBA) released an independent report quantifying the economic relationship between California and Israel. The findings highlight the significant impact of Israeli-founded companies in the state: they generate more than 22,650 jobs, $4 billion in compensation and nearly $9 billion in total economic output, with average salaries exceeding $175,000.<\/p>\n
The alliance works to strengthen economic ties between U.S. states and Israel. It organizes economic development missions to Israel for governors, higher education officials and business leaders and helps connect Israeli technology solutions to local challenges in the United States.<\/p>\n
Aaron Kaplowitz, president of USIBA, who ordered the report, emphasized the mutual benefits of this relationship. \u201cIsraeli companies benefit from being part of California\u2019s robust tech ecosystem, where strong local companies provide opportunities for partnerships and collaboration, and in turn, California companies gain from the significant Israeli presence,\u201d he said.<\/p>\n
Aaron Kaplowitz<\/p>\n
The report came shortly after Governor Gavin Newsom described Israel as an apartheid state, a comment he retracted a few weeks later. He claimed that he meant to refer to Israel\u2019s potential future direction, said he supports Israel but quickly added his opposition to Prime Minister Benjamin Netanyahu.<\/p>\n
Kaplowitz noted that feeling welcome in California is essential for Israeli entrepreneurs. \u201cIsraelis, like many people in the world, want to feel welcome. If political discourse is overly critical, they might look for a place that embraces them,\u201d he said. \u201cWhile California remains open to Israeli business, leadership \u2014 whether in business, political or cultural spheres \u2014 is essential to ensure these companies feel truly welcomed.\u201d<\/p>\n
California has long been home to Israeli entrepreneurs and companies spanning tech, cybersecurity, custom software, financial services and full-service restaurants. These businesses generate jobs and strengthen the state economy. Breaking down the numbers by county and Congressional District, the report shows the scale of their influence: Santa Clara County accounts for 11,000 jobs, San Francisco 2,300, and Los Angeles nearly 2,700. \u201cWhen you look at these numbers, it\u2019s clear how integral these companies are to the local economy,\u201d Kaplowitz said.<\/p>\n
Speaking with The Journal from his home in Miami, Kaplowitz highlighted the collaborative environment that draws Israeli startups to California. \u201cThere\u2019s a lot of collaboration with universities, companies and government programs. That\u2019s one of the reasons so many companies are drawn here,\u201d he said. \u201cCalifornia has the largest state economy in the U.S., and Silicon Valley\u2019s infrastructure is world-class. Tech companies can embed themselves in this ecosystem for partnerships, customers and collaborations.\u201d<\/p>\n
The report also underscores the high quality of jobs created. Average earnings of positions generated by Israeli companies are nearly double the California state average. \u201cThese companies create high-skilled jobs and drive local revenue,\u201d Kaplowitz said. \u201cWhen salaries are that high, the downstream impact on the state and communities is significant.\u201d<\/p>\n
\u201cFour out of the top five industries are in tech,\u201d he added. \u201cThe only one that\u2019s not tech is full-service restaurants. We have AI firms, software companies and financial services companies. These businesses are real anchors in Silicon Valley.\u201d<\/p>\n
This is USIBA\u2019s fourth report, following studies in Florida, Virginia and New York. The California report provides a detailed analysis of the economic, social and technological footprint of Israeli-founded companies, highlighting their role in driving innovation and supporting the state\u2019s economy. USIBA\u2019s mission is to foster economic opportunities between U.S. states and Israel, including organizing economic development missions for governors.<\/p>\n
Looking ahead, Kaplowitz highlighted opportunities for collaboration in security technology, particularly with major events on the horizon. \u201cCalifornia will host two FIFA World Cup matches this summer and the 2028 Olympics in Los Angeles. These are complex events, especially for security. Israel is a world leader in certain technologies, and Israeli companies should have a seat at the table. Their involvement will not only keep Californians safe but also create jobs and generate revenue.\u201d<\/p>\n
With 32 Israeli-founded unicorns\u00a0 \u2014 privately held startups valued at over $1 billion \u2014\u00a0 in California \u2014 the most of any U.S. state \u2014 these companies shape the Silicon Valley technology landscape, offering high-paying jobs and contributing substantially to the state\u2019s innovation ecosystem. From cybersecurity to lifestyle sectors, Israeli entrepreneurs are leaving a lasting mark on the economy while fostering collaboration between Israel and California\u2019s business and academic communities.<\/p>\n
Kaplowitz also emphasized the entrepreneurial spirit that distinguishes Israeli-founded companies. \u201cWhere Israelis stand out is their chutzpah \u2014 they don\u2019t give up easily. There\u2019s no such thing as \u2018no\u2019 to an Israeli founder. It\u2019s part of their dynamism, and it helps them succeed in a competitive tech ecosystem.\u201d<\/p>\n
When asked what California business leaders should take away from the report, Kaplowitz stressed the importance of data-driven policy. \u201cThe first thing we want is for them to know the actual data, so policies reflect what\u2019s real, not just assumptions,\u201d he said. He also noted California\u2019s incentive to continue attracting Israeli entrepreneurs, particularly to maintain its edge in Silicon Valley.<\/p>\n
Kaplowitz highlighted the role of academic collaboration in the research, mentioning the involvement of volunteer students from UC Berkeley who helped identify companies for the study. \u201cTheir contributions helped provide a more complete picture of the Israeli business presence in the state,\u201d he said.<\/p>\n
\u201cCalifornia should keep promoting itself to Israeli founders,\u201d Kaplowitz concluded. \u201cThese companies are not only driving innovation and high-skilled jobs, but they\u2019re also strengthening the local economy and sustaining the state\u2019s competitive advantage in technology and entrepreneurship.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"On March 16, the United States Israel Business Alliance (USIBA) released an independent report quantifying the economic relationship…\n","protected":false},"author":2,"featured_media":246436,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[7,9,8],"class_list":{"0":"post-246435","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-california","8":"tag-california","9":"tag-california-headlines","10":"tag-california-news"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/246435","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/comments?post=246435"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/246435\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media\/246436"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media?parent=246435"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/categories?post=246435"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/tags?post=246435"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}