@article{6d85d2dfb5d141c5be3bee7c7551d5d6,
title = "Technology policy and defense conversion in Israel, 1967-1995",
abstract = "Technology policies and their effect on technology transfer from defense to civilian industries in Israel from 1967 to 1995 are explored. Defense technology policy is found to drive the growth of the defense industry and to limit defense conversion to commercialization initiatives developed primarily through intra-organizational technology transfer. The case of the Israel Aircraft Industries (IAI) is presented. Also the development of national technology policy in Israel is traced and found wanting. Civilian and defense technology policies are found to be uncoordinated with each other and together are incapable of producing interorganizational technology transfer so as to significantly effect defense conversion on a wide number of economic actors particularly small firms. To achieve a socially effective defense conversion process (in which technologies are transferred from defense firms to many economic actors), the analysis suggests that a national technology policy should be designed and implemented under Prime Minister's leadership.",
author = "Daniel Vekstein and Abraham Mehrez",
note = "Funding Information: The IAI has transferred its military aviation expertise (originally beginning with the design of aircraft such as the Aravain 1969, Kfir in 1971, and Lavi in 1986) into several commercial programs, particularly in the area of business jets such as the Commodore-l123 initiated in 1970, the Weswind-1124 in 1976, the Astra in the early 1980s and recently the new Galaxy, a larger business jet for which the IAI is seeking an America partner capable of providing for some of the funding and marketing resources needed to make the Galaxy a commercial success. The efforts made by the IAI to find a risk-sharing partner for the Galaxi follow the investment cuts made by the Ministry of Defense in IAI's line ofbusinessj ets after the previously disappointing slow sales of the Astra. Optimistic projections for the 1980s indicated sales of up to 60 Astras per year, but actual sales for 1986 and 1987 combined reached only 11 aircraft. By 1993, investments of 335 million US dollars made on the Astra project had not returns; by 1994 the IAI loosed more than 400 million US dollars on the Astra. Despite of the cuts in IAI's financial help made by the Ministry of Defense, the Financial Committee of the Knesset recently approved a guaranty fund of 1.24 billion US dollars to help the IAI recover from its looses in the Astra project; with the recent financial help, a better marketing strategy and with the cooperation of an American partner, the IAI hopes the new Galaxy will restore profitability perhaps by 1998 (Etinger 1996).",
year = "1997",
month = jan,
day = "1",
doi = "10.1007/BF02509153",
language = "English",
volume = "22",
pages = "47--56",
journal = "Journal of Technology Transfer",
issn = "0892-9912",
publisher = "Kluwer Academic Publishers",
number = "1",
}