ISRAEL 
HIGH-TECH & INVESTMENT REPORT

from the August 2019 issue


The R&D Gospel

Kibbutz industries are becoming more aware of the benefits of research and development programs.

"A decade ago, the application of research and development programmes in the kibbutz industries was a nearly unknown concept," says Joseph Criden, outgoing director-general of the R&D unit of the Kibbutz Industries Association. "At that time, the sum total of R&D projects in the kibbutz industry sector totalled 10; now the number of R&D projects in progress exceeds 100. In the early 1970s, the challenge was to create an awareness of the importance of R&D and to relate it to the overall potential success of the kibbutz industrial complex."

Criden, a former American who settled in Kfar Blum, is accredited by many as "being one of the guiding spirits behind the rapid industrial expansion of the kibbutz industries, and more than anyone else, he spread the gospel of R&D.

"If you buy know-how, you inevitably wind up behind the times, because there is an inherent time lag resulting from the length of time required to find the desired know-how, as well as the time needed to negotiate its purchase and finally, the time it takes to transfer the know-how into marketable products. There is also competition, as other concerns around the world acquire similar or exactly the same know-how." This was Criden's message to fledgling kibbutz industries.

It appeared to be falling on unresponsive ears within the kibbutz movement. "Of course, it must be taken into account that in those days, one was lucky to find skilled technicians, not to mention engineers or other professionals, in the kibbutz. Today, kibbutzim have among their members not only engineers, but biologists, biochemists and a generally high technical level of manpower," says Criden.

Moreover, kibbutz industries have become attuned to the benefits to be derived from R&D programmes. An innovative approach may originate from any aspect of industrial activity. A case in point is that of the Kissufim factory at kfar Giladi which was producing plastic eyeglass frames. In this type of production there is a relatively high waste factor.

An R&D project revealed that sophisticated injection moulding techniques could improve quality and increase profitability by eliminating costly waste of expensive raw materials.

Achieving world leadership in one field of endeavour may often result in unexpected side benefits. The industrialization of Kfar Hanita began more than 30 years ago. A workshop plan specializing in custom-designed tools developed into the Hanita Metal Works, which has a working force of more than 200. This kibbutz enterprise is widely recognized as a world leader in the development and production of high-speed cutting tools.

Extensive research had led to the realization that high-vacuum roll coating equipment could be designed and built for industrial high-volume coating production. The object of the R&D was to determine whether Kibbutz Hanita could enter the international converting market with full metalizing, coating and lamination facilities.

Having established basic goals, Hanita searched for a consulting partner to help them in selecting equipment, marketing and starting up the manufacturing operation. Eventually, a three-part agreement was signed with the Dunmore corporation whereby Hanita would acquire Dunmore technology, a worldwide sales organization to market products from both facilities and a cooperative R&D programme.

"The complex structure in the product lines for which this equipment has been custom designed are not limited by international boundaries. The complexity comes about because each customer has unique requirements. Customer will now have access to two sources of production through one sales and customer service organization," says Michael I. Sullivan, president of Dunmore. Next year will mark the first production and sales of the Hanita line, with expectations for a quick entry into the market.

Kibbutzim has amassed extensive experience in irrigation, partly because of the country's limited water supply. The need to save water has led to the development of sprinkler control systems. One of these, developed by Kfar Blum, is being marketed successfully by the California Hydronic Systems, Inc.

Called "The Sprinkler Thinker", the device has an automatic battery-powered sprinkler control system, requiring no electrical wiring. Installation, classified as "do it yourself," is inexpensive. requiring no electrical wiring. Installation, classified as "do it yourself", is inexpensive.

For the past 12 years, Beit Keshet Electronics has been engaged in the development, production, and marketing of electronic systems. Since 1979, its main product has been the development and manufacture of electronic weighing systems.

Deganya Bet Industries has acquired a reputation as an innovative and reliable supplier of polycrystalline cutting tools, which allow for the relatively easy cutting of nonferrous metals and nonmetallic materials as well as hardened ferrous metals and high temperature alloys.

Deganya Bet prides itself on the fast service and standard tools stocked for quick delivery, its high-quality tool designs, the fact that its tools are the most cost-effective and productive tools existing for machining recommended materials. Higher productivity compensates for higher price. Regrinding yields additional profit. The tool range is designed to fit standard toolholders, allowing switchover without additional cost and replacement of present tools without loss of production time.

Joseph Zur, of the Kibbutz Industries Association's R&D unit, says that in the years ahead kibbutzim will become ever more industrialized, using R&D as a springboard for bringing out unique and useful products. "We are trying to assist in the computerization of cow sheds and chicken coops. In the case of cowsheds, it's important to be able to determine the daily output of each cow and to determine the fat content by weight."

At kibbutz Afikim the problem of identification of individual cows has received a lot of attention and, according to Zur, the kibbutz is on the verge of a major breakthrough in this particular area of technology.

"Kibbutzim today have over 300 manufacturing concerns. More than a few are relatively small units. In view of the size, the accent is more on development than on an applied research. It is of great satisfaction to us to know that there is a relatively high degree of success of the projects submitted for assistance and approval to the chief scientist," explains Zur.

"Kibbutzim are responsible for 50 per cent of the country's total agricultural production. Though accounting for only three per cent of the country's population, kibbutzim are responsible for five per cent of the country's total industrial production. In terms of industry, we are convinced that there is a vast unrealized potential," he added.

"Not all kibbutzim have the necessary minimum qualifications to consider the use and advantages of R&D. But we at the KIA see this as an important part of our task, so that future potential will be realized sooner rather than later," concludes Zur.

The Kibbutz high-tech paradox (26.2.88)
While the kibbutz population represents only 2 percent of the country's population, its industries account for 7 percent of Israel's industrial output. These figures are indicative of an ongoing trend of industrialization and, if past developments are any indication, these figures are bound to grow appreciatively by the end of this decade.

The desire for kibbutzim to enter into industrial undertakings was underscored recently in an eye-catching pamphlet entitled, "Kibbutz Yahel in Search of Industry." This kibbutz, according to the pamphlet, is seeking to acquire technology that is suitable to its capabilities - and financial and social advantages. In the initial stage, Kibbutz Yahel is prepared to invest $2m., and says that 12 to 15 kibbutz members are available to man the industrial project.

In 1985, export sales of the kibbutz industries came to about $290 million. Notwithstanding this impressive total, an in-depth analysis of kibbutz industries shows a serious absence of science-based firms. In 1984, for example the kibbutzim exported only $10 million worth of electronic products, and this accounted for only 3.4 percent of the total kibbutz industries exports.

There are many reasons for the lack of participation in hi-tech undertakings. One of these is the absence of broad-based, technologically-trained and skilled technicians. Middle-management skills are also scarce. Observers point out that when a kibbutznik gains an advanced technological education, he is likely to consider seeking material advancement outside the kibbutz, rather than "return to the farm."

Moreover, there does not appear to be any infrastructure within kibbutzim on which to base, cultivate and propagate an innovative high-tech environment. While the Kibbutz Industries Association is trying to remedy this situation, a research and development unit for kibbutzim has not yet been established. The Association - and other observers - is aware that the absence on kibbutzim of a tradition of research and development facilities is a major shortcoming and a barrier to the establishment of high-tech industries.

Many kibbutzim have turned to industry after having attained a high level of agricultural expertise. The more intensive the agriculture and the higher the output, the fewer workers are required. Along with this, there appears to be a very real trend for kibbutzniks to shy away from agricultural pursuits - especially those which entail relatively heavy work. By adding industries, the kibbutzim meet the emerging trends toward new occupational preferences. Some kibbutzim establish light industries to provide useful occupations for their senior citizens.

In addition, the kibbutz member - no less than his big city counterpart - is interested in lessening his workload and in creating a pleasant industrial working atmosphere. It is not surprising, therefore, that kibbutzim are in the forefront of adopting robots as a way of alleviating the unpleasantness and drudgery of certain industrial tasks.

More than 2,000 kibbutz members have trained at the Ruppin Institute's robotics centre in the past two years. This provides evidence that the kibbutzim are interested in robotics and consider them suitable to their unique social structure.

While in private industry the robots are generally opposed by unions who fear they will take away jobs, on the kibbutzim - where members have life-time security, this fear does not exist. Furthermore, robots help kibbutzim deal with the problem of limited manpower.

In another field - that of innovative irrigation and water systems - the kibbutzim have not only excelled but have also demonstrated a marked degree of international success. These systems have been the hallmark of Israeli farming achievements, and have been instrumental in this country's ability to feed its own population.

Impetus for the developments of agricultural industries can be related to a number of factors, including shortage of manpower, poor soil, lack of water and energy, and the need to replace food exports by locally-produced agricultural products. Furthermore, novel irrigation methods have served to overcome the problems of working under unfavorable climatic conditions. As a result, kibbutzim and other settlements are some of the major exporters of winter crops and flowers to Europe.

Another innovative Israeli process is chemigation, the supply of fertilizer through irrigation systems, to improve crop yields. The invention of this process has resulted in the development of a variety of products. Key suppliers are Kibbutz Amiad in the Galilee, which produces fertilizers and chemical injectors without any external energy being required, and Netafim of Kibbutz Hatserim in the Negev, which manufacturers unique drip-irrigation systems.



Reprinted from the Israel High-Tech & Investment Report August 2019

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