the file

Export Industries
Residential Environment
Education
Culture
Coexistence
The Tefen Model
Industrial Development for Economic Independence
Editing and writing:
Debbie Simmons
Design and production:
studi[o]z
www.studio-oz.co.il
Photographs courtesy of:
Asi Zack, Avraham Hai, Shai Adam and the Iscar archives
Translation:
Rubik Danieli
Proofing and editing:
Susan Spira
Printing:
Rahash Print Ltd.
With special thanks to:
Sir Martin Gilbert, Tim Sebastian, Erez Navon, Avraham Asheri, Tova Goren,
Haia Weisel, the team at the Industrial Parks and the office of Mr. Wertheimer
for their assistance and contributions.
This book is based on "The Tefen Model, the Path of the Industrial Parks
to Economic Independence" (in Hebrew), Tefen Enterprises Ltd., 2003.
Unless otherwise indicated, all quotes featured in this book are
the words of Stef Wertheimer.
All rights reserved.
© 2005 Tefen Enterprises Ltd., Tefen Industrial Park
ISBN 965-90441-8-6
www.industrial-parks.co.il
Introduction
Opening Comments
Stef Wertheimer - Founder of Iscar Ltd. and the Tefen Model
Industrial Parks and Honorary Chairman of the IMC Group
From Conflict to Industrial Development
The Regional Challenge
The Industrial Park Solution - A Brief History
5
5
7
7
15
The Tefen Model
An Integral Approach to Economic Development
Export Industries
25
Education
Professional Training
Industrial Entrepreneurship for Coexistence
Educating the Industrialists of the Future
31
32
33
35
Residential Environment
37
Culture
43
Coexistence
53
A Success Story
The Tefen Model in Practice
About the Industrial Parks
57
The Results
61
Inside the Industrial Parks
Tefen Industrial Park
Tel Hai Industrial Park
Omer Industrial Park
Lavon Industrial Park
69
69
73
75
77
Current Developments
Dalton Industrial Park
Gebze Industrial Park, Turkey
Nazareth Industrial Park
79
79
81
81
At the Planning Stage
Rafah-Kerem Shalom Industrial Parks
Aqabah Industrial Park, Jordan
83
83
83
An Expansion of the Model
Industrial Development for Economic Independence
87
The Plan for Economic Development Centers
in the Eastern Mediterranean
Goals of the Plan
The Program - Industrial Development of the “New Levant”
Implementation of the Plan
97
97
98
103
In Conclusion – Opening a New Chapter
A Vision for a New Reality
107
Visitors Book
109
Introduction
“I must study politics and war so that my children
may have the liberty to study industry and commerce.
My children must study industry and commerce so
that their children may have the prosperity to study
art and literature.”
John Adams, 1780, Second President of the United States
3
Tefen Industrial Park
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Opening Comments
Industrial Development as a Tool for Peace
Stef Wertheimer
Founder of Iscar Ltd. and the Tefen Model Industrial Parks and Honorary Chairman of the IMC Group
I have often been asked what led me to formulate the Tefen Model.
An honest response would be to say that underlying it all is the
metaphysical concept of “survival” and my belief in the fundamental
role of creativity and entrepreneurship in achieving economic
independence.
As a new immigrant growing up in the recently established State of
Israel, my career path was shaped by the need to provide for my family and to play my part
in the defense and in the building of my new country. A lack of local resources and
opportunities led me to develop my own technological solutions and to set up a manufacturing
company. As my business developed, limited local markets drove me to seek opportunities
5
overseas. Thus, my first venture, producing cutting tools, began in a small workshop and
grew, over the years, into the multi-national market leader it is today.
Our survival in this region depends, ultimately, on the resolution of current conflicts.
Alongside the security issues there must, however, be a road map for economic development,
for industrialization, for job creation and for export production. Only by increasing the income
levels of all countries in the region, will we begin to reduce the immense friction of disparities
between neighboring countries and between the Middle East and the developed nations.
While the Middle East produces 60% of the world's oil, it manufactures just 2% of the
world's goods. With high levels of unemployment in the Arab countries and a rapidly
increasing young population, there is a desperate need to generate meaningful employment
opportunities and the hope for a better future.
For me, the term “Middle East” has no real meaning. Rather, I see two areas separated
by their ownership of oil resources, whereby those of us without oil are the eastern
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Mediterranean countries that formed the old “Levant”. Among the “non-oil” countries are
those that would choose to compete on world markets and seek economic independence
such as Jordan, Turkey, Israel and, potentially, Lebanon and the Palestinian Authority.
Successful advancement along this path can lead the countries of our region towards the
creation of a thriving economy, towards a work ethic based on reason and responsibility
and towards the achievement of peaceful coexistence between like-minded neighbors.
Recent history in other regions of the world has shown that the deep-rooted conflicts of
the past can be overcome by investing in the creation of a prosperous future. We can learn
much from the success stories of European integration through the development of joint
economic interests and of the achievement of economic prosperity through the development
of export markets in countries such as Singapore, Ireland and South Korea. These models
must be copied by those of us who choose economic and social freedom and peace those who embrace the goal of being part of the European economy and of the free world.
The economic solution for the region is not emergency measures intended to alleviate
poverty, but rather the creation of a middle class that will strive for economic independence
and create a better future.
Tefen Model Industrial Parks are recognized worldwide as a successful means for generating
innovative export industries and promoting economic development. We are now seeking
to expand the implementation of the Tefen Model infrastructure for industrial development
in other forward-thinking countries in the region. Together with our friends and neighbors,
we now pursue the construction of a dynamic industrial infrastructure for the “New Levant”
that will contribute to economic independence and provide the basis for true peace in the
Middle East.
The assistance we require is in the form of industrial investment, educational programs
and export orders. We, too, wish to be proud and free.
OPENING COMMENTS
6
From Conflict to
Industrial Development
The Regional Challenge
Today, poverty and strife in the Middle East fuel conflicts that influence the entire globe.
Once a bustling economic region, the 280 million residents of the 22 countries defined as
the Arab World now have the lowest per capita income growth in the world, with the
exception of sub-Saharan Africa. Limited political freedom and the insular nature of these
societies create and maintain an ever-increasing socio-economic and cultural divide between
the Arab world and those countries that advocate democracy and strive for economic
independence.
“A booming industrial base provides more security than a
military outpost.”
In the non-oil, Muslim countries of the Arab world, annual GDP per capita ranges between
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US $1,000-2,000, compared with over US $16,000 in Israel and US $24,000 in France.
Growth in the Arab countries, expressed in GDP per capita, is also one of the lowest in the
world. Figures suggest that a GDP per capital of US $6,600 and above marks the transgression
point from societies fostering terrorism and violence to those aspiring to be integrated into
the world economy. Whereas many developing regions can hope to double their GDP per
capita in 10 years, at the current rates of growth, the average Arab citizen will require 140
years to double his or her income (Arab Human Development Report 2002, United Nations Publications).
“The Arab world, alas, has been cursed with oil. For decades, too
many Arab countries have opted to drill a sand dune for economic
growth rather than drilling their own people - men and women - in
order to tap their energy, creativity, intellect and entrepreneurship.”
Thomas L. Friedman, the New York Times, 9th May 2004.
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GDP per Capita in Middle East Oil States is Far Higher
than in Non-Oil States
(US$)
Countries with no
market for their oil
Oil States
Non - Oil States
19,000 18,060 18,030
9,370
7,230
8,200
8
4,800
2,500
Qatar
UAE
Kuwait Bahrain Saudi Oman
Arabia
Iraq
1,750
1,530
1,750
1,000
460
Iran Lebanon Egypt
Jordan
Syria
Yemen
Source: Australian Department of Foreign Affairs & Trade, 2003, www.dfat.gov.au
The Arab Human Development Report 2003 notes the damaging impact on the potential
for development in the Middle East of excessive oil dependence, which can be seen to stifle
innovation and production and to accelerate the emigration of educated professionals from
the region. The dependence on oil and other export commodities provides little incentive
to stimulate local investment and discourages broader international trade relationships,
creating a resistance to the opening of Arab economies to the outside world. The resulting
lack of exposure to foreign competition and excessive protection of local products in Arab
markets slows the advancement of productivity and innovation in Arab economies.
FROM CONFLICT TO INDUSTRIAL DEVELOPMENT
Towards Integration with Europe
FRANCE
North Atlantic Ocean
CROATIA
ITALY
BOSNIA
Adriatic Sea
9
ALBANIA
SPAIN
TyrrhenianSea
Mediterranean Sea
ALGERIA
MOROCCO
GREECE
TUNISIA
“Figures suggest that a GDP per capita of US $6,600 and above
marks the transgression point from societies fostering terrorism and
Gulf of Sidra
violence to those aspiring to be integrated in the world economy.”
LIBYA
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GDP per Capita Around the Mediterranean Sea
(in thousands US$)
24
21
16.5 16
14
12.5
11
US$ 6,600
5
5
1
1
1
1
SYRIA
MOROCCO
EGYPT
WEST BANK & GAZA
BOSNIA & HERZ.
IRAQ
1.5 1.5
ALBANIA
CYPRUS
2
JORDAN
SYRIA
2
ALGERIA
TURKEY
CROATIA
LEBANON
SLOVANIA
GREECE
CYPRUS
ISRAEL
SPAIN
ITALY
FRANCE
TURKEY
2
TUNISIA
2.5
Source: Australian Government
Department of Foreign Affairs
& Trade, 2004 (figures for 2002),
www.dfat.gov.au
LEBANON
JORDAN
ISRAEL
EGYPT
SAUDI
ARABIA
FROM CONFLICT TO INDUSTRIAL DEVELOPMENT
10
During the last G8 Summit in Egypt, the member nations resolved to tackle the issue of
stability in the Middle East by working towards the economic-political reform of the Arab
nations in the region. In light of the controversial American occupation of Iraq, the major
challenge will be to assist the “development from within” of economies in the region, without
direct involvement and interference on the part of Western nations. A model is needed to
encourage local industrial and technological development, while opening Arab economies
to international markets.
11
“We believe that conflict, no matter how heavily entrenched in history,
can be defused by encouraging populations to shift the focus of their
energies and resources to fighting the right battles - battles for global
markets as a means of improving their quality of life and achieving
economic independence. Success in this endeavor requires a dedication
to industrial productivity and exports, through investments in
entrepreneurial creativity and education for industry. In this way,
it is possible to turn the national focus away from a preoccupation
with local issues of conflict to the establishment of a foothold in the
fast-changing global economy.”
Today, twenty years after the construction of the first Industrial Park at Tefen and the
construction of three additional Industrial Parks in the peripheral Galilee and Negev regions
of Israel, it can be clearly stated that the Tefen Model provides a means for achieving
economic development and the base for a peaceful and dignified way of life for local Arab
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Ground-breaking Ceremony, Gebze Indusrial Park, Turkey 2003
and Jewish populations. The expansion of the Model within Israel now extends beyond its
borders, via the Palestinian Authority in the direction of Turkey and Jordan - creating new
possibilities of peaceful coexistence, development and progress throughout the region.
In Turkey, 25 dynamic industrial enterprises will begin operating later this year in an Industrial
Park developed according to the Tefen Model. This joint initiative of Israeli-Turkish industrial
development is built on the close cooperation of local industries and academic institutions
in both countries, and has received commendations from both countries for the positive
contribution the initiative has made to Israeli-Turkish relations.
We propose that the Tefen Model can contribute to regional stability and to a lasting
peace, and offer much-needed opportunities for those countries that seek to provide an
honorable livelihood for their citizens, to develop economically and to prosper.
FROM CONFLICT TO INDUSTRIAL DEVELOPMENT
12
13
Iscar Ltd., Tefen 2003
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FROM CONFLICT TO INDUSTRIAL DEVELOPMENT
The Industrial Park Solution - A Brief History
Atop a rocky hillside in the northern Galilee region of Israel, industrial workers each produce
over $150,000 a year for export. Together they account for over 10 percent of Israel’s
industrial exports and yearly sales of one and a half billion dollars. This is Tefen, populated
by less than one percent of the Israeli population.
Tefen is the site of the first model Industrial Park developed by the industrialist Stef
Wertheimer, replicated at three other locations in Israel with four additional projects planned,
both in Israel and overseas. At the outset, these projects promoted Stef Wertheimer's vision
of the development of Israel towards a goal of economic independence and stability. Today,
the model is expanding in pursuit of a broader vision for economic independence for Israel
and her neighbors, regional stability and peace.
Up until the mid-1980s, Tefen was a barren hilltop grazed by local goat herds. Today, the
15
scope of industrial exports manufactured at Tefen equals that of the entire Jerusalem area.
The four Tefen Model Industrial Parks have, to date, given rise to more than 160 industrial
enterprises, with export rates typically associated with industrial powerhouses such as the
United States, Western Europe and Japan.
Stef Wertheimer began his industrial career in the early 1950s when he started manufacturing
hard-metal cutting tools and bits in a small workshop in his back yard. Iscar - Israel Carbide
Iscar Ltd., Tefen, 2003
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The Tool Factory, Iscar Ltd., 1958
was established with just two employees including the founder himself. Within five years,
Iscar was exporting precision carbide cutting tools to Europe and the United States.
In 1982, the Iscar plant was the first to move to a remote location near Israel’s northern
border - Tefen. At this time, having just completed a term as a member of the Israeli
parliament, Stef Wertheimer returned to Tefen with the aim of assisting young entrepreneurs
in setting up industrial initiatives that focus on export markets. In 1984, the Tefen Industrial
Park was established alongside Iscar in the Tefen area.
Today, Iscar is among the world’s three leading producers of hard-metal cutting tools,
with 99 percent of production for export to the automobile, aviation and space, molds
and electronics industries. At the beginning of 2004, sales at Iscar stood at one billion
dollars, with Iscar Group factories and subsidiaries located in over 50 countries, employing
thousands of workers around the world. The company headquarters are located in Tefen.
THE INDUSTRIAL PARK SOLUTION
Iscar and the neighboring Industrial Park share the same values, the same belief in
entrepreneurship, in excellence and in seeking opportunities in the face of adversity. Although
Iscar’s story is exceptional by any standard, many other successful enterprises have flourished
in the Industrial Parks with Iscar’s inspiration, encouragement and support.
When the success of the Tefen Industrial Park became apparent, three additional Industrial
Parks followed, at Tel Hai and Lavon, in the northern region of the Galilee and in Omer, in
the southern desert region of the Negev. Today, two additional parks are in the process of
being developed in Israel, one in the Dalton region of the Galilee and the other in the Arab
city of Nazareth.
The Industrial Parks were established with the goal of creating a supportive, quality
environment to nurture the development of export-orientated economic activity. All of the
Parks are unique in Israel in that they integrate a high level of aesthetics and business
services with art, culture and educational facilities of international standards. The Industrial
17
Park is a supportive business incubator that enables entrepreneurs, at the early stages of
business development, to focus their efforts on their major concerns, namely the manufacture
and marketing of their products.
“The Tefen Industrial Park proves that even in a remote hilly location,
devoid of industry, it is possible to develop advanced modern industries,
equipped to compete successfully on world markets.”
The Industrial Parks emerged from a holistic concept of economic development - the
Tefen Model. The Model is based on the synergy of complementary factors of development:
advanced export industry, education and technological training, cultural enrichment, high
living standards for workers and their families, and peaceful coexistence. The simultaneous
pursuit of all of the development factors provides a collective impact, far greater than the
sum of individual initiatives.
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“The Industree” - For Economic
Independence
Poster commissioned by Stef Wertheimer
and designed by Dan Reisinger
The image represents Israel's development
over the last 100 years towards economic
independence. The first stage of
development, represented by the base of
the tree, is the Jewish agricultural settlement
of Israel. The second stage, represented by
the straight trunk of the tree, is security
development and the wars and dangers
the country has undergone. The third stage,
represented by industrial wheels as the
flowers on the upper boughs of the tree,
is the stage of industrialization needed to
achieve higher domestic production and
achieve economic independence.
The synergy generated by the Model sets the Industrial Parks apart from other industrial
initiatives in Israel and abroad, through their creation of an entirely new type of industrialsocial-cultural entity. The model, which recognizes the importance of a sophisticated work
environment together with the possibility of a high quality of life, has been exceptionally
successful in attracting highly productive industries and a high-quality workforce to remote
and developing areas.
In the following chapters of this book, we present the Tefen Model and document its
successful implementation. We then present plans for the expansion of the Model in other
Eastern Mediterranean countries and for the industrial development of the “New Levant”.
Our aim is to generate support for vocational and entrepreneurial training, investment for
the creation of new jobs, and support for the development of export opportunities as a
means to stem the ongoing unrest and violence in the region.
THE INDUSTRIAL PARK SOLUTION
18
Company Focus - On Track Innovations (OTI) Ltd.
www.otiglobal.com
In 1990, Oded Bashan and a small team of
up on its feet - which was crucial at that stage.”
engineers approached Eitan Wertheimer and his
The group founded On Track Innovations (OTI)
father Stef with an innovative idea for an “electronic
Ltd. in the Tefen Industrial Park in 1990 and
purse” that would substitute cash for small
registered their first patent by the end of that year.
purchases, serve as a form of identification and
The small team struggled for two years, doing
provide a convenient means for petrol purchases.
engineering work to fund their development and
The start-up company was given a small space in
barely drawing salaries. “One of our first applications
the Tefen Industrial Park to pursue their development
was for the Iscar automated warehouses at Tefen,”
work.
recalls Bashan.
“I am a strong believer in the value of the Tefen
19
Towards the end of 1992, OTI began to sell smart
Model,” confides Bashan, “especially in the
card solutions to the Israeli kibbutz organizations,
invaluable advantage the Industrial Parks provide
which provided the company with an ideal “closed
for young innovative companies. The Park
campus” environment in which to apply and develop
management was a big help assisting us with
its products. Now feeling ready to stand on their
various bureaucratic issues and was very patient
own feet, the company chose to leave the protective
with the irregular cash flow of our new company.
environs of the Industrial Park and build their own
The administration and infrastructure services
facility in the vicinity of the Machanaim domestic
provided by the Park allowed us to dedicate our
airfield in the Upper Galilee region.
attention to the difficult task of getting the company
OTI facilites in the Zahar industrial zone, Oded Bashan opens NASDAQ trading
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20
OTI products
From the outset, the company invested in the
markets and a publicly traded company on the
creation of a high-quality work environment.
NASDAQ and Frankfurt stock exchanges. Oded
“I learned first hand from our development period
Bashan, Chairman, President and C.E.O. of OTI
in the Tefen Industrial Park, that a comfortable and
now heads a team of 205 employees worldwide
attractive work environment contributes directly to
with annual sales of $20 million, 95% of which are
productivity and to a positive work atmosphere,”
for export. Some 90 employees, mostly engineers,
confides Bashan proudly. “We applied here what
are employed at the OTI headquarters and research
we learned in Tefen. Our investments in the
and development facility in Israel; whereby sales
aesthetics of our surroundings have been a
and marketing subsidiaries are located in Europe,
worthwhile investment with fast returns.”
South Africa and the United States; and
Today OTI is a leading provider of contactless
smart card solutions to a wide variety of global
manufacturing and testing facilities have been
established in Israel, Germany and the US.
The Tefen Model
A n Integr al Approach to Economic Dev elopment
“The rehabilitation of an injured economy can be achieved
only through the direct support of industry, trade and
education and the establishment of a stable infrastructure
essential for their efficient functioning.”
Stef Wertheimer
The Tefen Model for industrial development presents an integral approach for changing the
reality of a region. Based on encouraging export industries through the development of
Industrial Parks, the model generates a range of complementary programs and activities
in five key areas, which together provide a support system for stable and sustainable
economic and community development.
Industrial innovation and growth rely on the generation of entrepreneurial initiative and the
availability of quality labor. The ability to attract and sustain a quality workforce requires the
provision of a desirable quality of life and educational and cultural resources. A stable base
for economic development, whether regional or on a national scale, must employ all sectors
of society and provide them with equal opportunities for economic advancement. With a
simultaneous focus on the development of export industry, technological and entrepreneurial
education, cultural initiatives, quality residential environments and a sound multi-cultural
economic base, the Tefen Model offers the hope of prosperous stability for Israel and
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her neighbors.
Iscar Ltd., Tefen
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3BY Ltd., Tefen Industrial Park
Export Industries
The Key to Economic Independence
A flourishing industrial sector is a primary need of any country seeking to advance its
economy. The creation of support infrastructure to encourage the development of export
industries should be a top priority for any nation pursuing this goal. The development of
export industries furthers development not only through its impact on the economy from
the increased foreign income, but also through its role of building bridges of mutual knowledge,
creative interaction and exchange between trading partners. The relationships developed
through trade can bring us closer to our neighbors and to the other western countries.
“Industry is important, but export industries are of crucial importance.
A nation’s economic independence depends on export industries and on its
ability to compete and succeed in the highest league of the world economy.”
The foundation of any development process towards economic independence is
25
entrepreneurial initiative and the productive employment it creates, whereby energies are
invested in the search for creative solutions rather than in dwelling on problems. Such
creative initiatives are the source of industry and of the drive for the development of export
markets. A healthy export industry creates jobs, attracts local and foreign investment and
encourages residential development.
Industrial entrepreneurship for export markets is the cornerstone of the Tefen Industrial
Park Model. Regional growth is achieved through the development of industry and exports,
whereby successful entrepreneurs not only create jobs, but also tap extensive international
markets with a potential for long-term growth.
The Tefen Model Industrial Parks were created with the purpose of supporting the
development of industrial entrepreneurship in the periphery of Israel. With a distinct focus
on attracting and encouraging export industries, the Model seeks to develop long-term
solutions for economic growth on both local and national levels.
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DCD Line Ltd., Tefen Industial Park
A wide range of activities focused in and around the Industrial Parks serves to both attract
and support industrial entrepreneurship. With the multi-pronged approach set out in the
Tefen Model, a package of support services and wide-ranging educational, cultural and
residential projects creates a development dynamic to generate and sustain regional growth.
At the heart of this dynamic are motivated people who wish to produce better products and
to sell them all over the world.
EXPORT INDUSTRIES
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B.A. Electronics Ltd., Tefen Industrial Park
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Techjet Ltd., Tefen
EXPORT INDUSTRIES
Company Focus- Ethrog Biotechnologies Ltd.
www.invitrogen.com
The initial business idea of Ethrog Biotechnologies
of the area, close to Kibbutz S’de Nechemia where
Ltd. was to develop frozen cow embryos for export
I grew up,” explains Uri Yogev, General Manager
to dairy farms throughout the world. While working
and co-founder of the company.
on the research and development of their business
Located in Priority Development Area A, the
idea, the company made an innovative discovery
location offered the start-up company government
- disposable cassettes for the separation of DNA
incentives for investment in industry, together with
molecules, “E-Gel”.
the lower rental costs of the space in Tel Hai
In the crucial race to identify the complete map
29
and the competitive costs of suppliers and
of human genes, this innovative patented product
sub-contractors in the region, as compared with
allows for a faster, safer and more efficient
the center of the country. “There was no other
research process, reducing a time-consuming
place like the Tel Hai Industrial Park in the region,”
and risky research process into one simple and
continues Yogev, "the advantages provided by the
convenient step.
Park were important for a start-up company like
ours, seeking to grow and sell ourselves to potential
Four years after the establishment of the company
clients and investors.
in 1993, Ethrog decided to set up a production
“The attractive environment and the image of
plant and began looking for a suitable location.
The company chose to establish the plant in the
the Park definitely helped us present ourselves
Tel Hai Industrial Park in the Upper Galilee region.
successfully to investors. The flexibility and
“Our location decision for the production plant was
understanding of the management of the Park
based on cost considerations and the convenience
were also very important to us. Our company has
Uri Yogev, Ethrog products
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Ethrog product for HT protein analysis
tripled in size since establishing the production
In 2000, Ethrog Biotechnologies Ltd. was
plant in the Tel Hai Industrial Park, and the
acquired by the Invitrogen Corporation. Based in
services and modular buildings in the Park have
California USA, Invitrogen employs 2,500 workers
provided a very comfortable and convenient
and has annual sales of some $650 million. Ethrog
environment throughout our growth.”
Ltd., now a wholly-owned subsidiary of the
The company also benefited from the close
corporation, employs 25 workers in the Tel Hai
proximity of the Park to the neighboring Tel Hai
production facility and 15 in the management and
College. “The recruitment of graduates in our field
research and development offices in the Ness-
was very effective here,” remarks Yogev, “for both
Ziona Science Park in the center of the country.
technical and academic staff. The quality of life in
In light of the commercial success of Ethrog’s new
this area of the country also makes it an attractive
product lines for DNA and HT protein analysis, the
residential option. Once people find fulfilling work
company is now considering expanding its
here, they become very loyal to the area and worker
production facilities in Tel Hai.
turnover is much lower than in other areas of
the country.”
Education
An Essential Part of Industry
Education is an essential element of the Tefen model. High-quality technological education
is crucial in order to generate a skilled and professional workforce for industry. The future
of a nation’s industrial sector and the dynamism of its economy depend greatly on the
preparation received by younger generations to educate and encourage them to develop
entrepreneurial enterprises and to invest in a career in industry.
In contrast to many Middle Eastern countries, the State of Israel has no oil. Indeed,
a lack of natural resources has driven the Israeli economy to seek a foundation in export
industries, whereby Israeli industry must compete for a place in the world market alongside
the developed and industrialized countries. To ensure economic growth and the development
of a healthy dynamic economy, Israel and other nations aspiring to this aim must invest in
technological and professional education today in order to guarantee future generations of
industrial development.
The Tefen Model plays an active role in promoting technological education, educating
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potential entrepreneurs and attracting young people to the concept of industry as a creative,
challenging and enriching environment for personal development.
Participants in Industrial Park education programs
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Professional Training
A Primary Tool for Fighting Unemployment
In order to achieve and maintain a competitive edge on world markets, substantial resources
must be invested in the professional training of youth and adults and in adapting educational
materials to the changing needs of the economy. Long-term planning is required to ensure
that study and training programs at all levels correspond to market needs, with a focus on
practical workplace experience provied by willing employers and matriculation systems that
focus on industry-oriented courses.
Since its inception and long before the first stone was ever laid in the Tefen Industrial Park,
the Tefen Model has focused on educational activities. In 1964, in cooperation with the
Ministry of Labor, Stef Wertheimer initiated the establishment of the “Zur” industrial school
in Nahariya, in north Israel. The school provided technological education for youths, many
of whom had dropped out of the ordinary educational frameworks. To this day, many of the
school’s graduates are workers and managers at Iscar and other industries in the region.
The Industrial Parks implement a series of educational programs to support industrial
development and growth. The Zur College was established in the Tefen Industrial Park in
1994 to train mechanical engineers in the fields of plastics and “mechatronics”, together
with entrepreneurship and management. In 1999, the college was closed and the Zur Training
Center opened in the Lavon Industrial Park to provide entrepreneurial and professional
industrial training, including computerized CNC courses for local minority populations in
cooperation with the Ministry of Industry, Trade and Labor.
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Industrial Entrepreneurship for Coexistence
One of the Model’s assumptions is that entrepreneurship is the life-breath of progress.
The Tefen Model is, therefore, based on identifying and locating entrepreneurs, extending
to them the necessary support, knowledge, guidance and connections, and providing them
with an environment conducive to growth.
“The promotion of entrepreneurship is the most worthwhile means of
economic development. It empowers one of the greatest and inexhaustible
resources - human potential.”
The Industrial Parks have a long history of encouraging and supporting industrial
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entrepreneurship. A special course has been developed, in cooperation with the Tel Aviv
University, with the express purpose of assisting potential industrial entrepreneurs. Run by
the Zur Training Centre in the Lavon Industrial Park, the course provides Jewish and Arab
entrepreneurs from all over the country with the opportunity to advance their business ideas
in the framework of a highly intensive and stimulating residential program - “the Arab-Jewish
Entrepreneurship Course”. Course graduates are offered further assistance from professional
supervisors for the completion and implementation of their business plans. When their
business projects reach the start-up stage, interested course graduates are invited to join
one of the Industrial Parks, where they can continue to receive support from the range of
Park services and infrastructure, including consultation with veteran entrepreneurs and the
Industrial Park management.
The course pursues the goal of preparing fresh new forces to contribute to the dynamic
cycle of entrepreneurial endeavor, so much needed by the economy. With an active focus
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Students from the Arab-Jewish Entrepreneurship Course, Lavon Industrial Park, 2004
on recruiting an equal balance of Arab and Jewish participants to the course, the ground
is prepared for the development of economic cooperation and partnerships involving all
sectors of Israeli society.
“How do you locate entrepreneurs? You look for those people who
have both the drive to be independent as well as the patience and
stubbornness to do so.”
EDUCATION
Educating the Industrialists of the Future
The Tefen Model seeks to attract young people to the idea of a career in industry by focusing
on the creative and challenging aspects of manufacturing, while showing them how attractive
and aesthetic an industrial environment can be. The Industrial Parks focus on a range of
educational and cultural activities intended to draw the local community into the heart of
industry, while placing industry in the heart of the community.
At the heart of the Tefen Industrial Park is the site of an experimental regional school,
which has added unique industrial content to its study programs. Some 500 children from
local communities are currently in attendance at the school, which ranges from kindergarten
to high-school level.
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“The younger generation must return to industry, to manufacturing.
The region’s leaders must take action and make export industries
their top priority. Our fate demands it.”
Specialized study programs have been developed by teams of professionals in the
education departments of the Industrial Parks to provide children of all ages with a basic
foundation in the concepts of industry and art and in the synergy between production and
creativity. Programs are tailored to the needs of individual groups to provide maximum,
direct exposure to entrepreneurship, creativity and technology. The Industrial Parks work
with schools and educational organizations nationwide to develop and expand the extent
of knowledge in technological and industrial fields, while fully employing the wealth of
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Students in the Computerized CNC Course, Lavon Industrial Park
resources available in the Industrial Parks. Groups participate in facilitated activities in the
Parks’ art galleries, sculpture gardens and industrial facilities, where some see manufacturing
industry and its surroundings for the very first time.
The Industrial Parks have adopted the development of young entrepreneurs as a pet
project, hosting a wide range of activities. The Parks cooperate with local groups of young
entrepreneurs, whereby the Omer Industrial Park sponsors the local branch of the international
“Young Entrepreneurs” program.
EDUCATION
Residential Environment
The Worker’s Quality of Life as a Point of Departure
The quality of life provided in well-planned, desirable residential areas is a key factor in the
synergy that drives the Tefen Model. High-quality residential environments in the vicinity of
the Industrial Parks play a significant role in the model’s success in attracting and maintaining
a high-level workforce in outlying areas. Many attempts to attract industrial development
to the periphery fail to generate a significant impact on the local economy, creating only
low-paid jobs, while management functions remain in the central areas of the country. By
providing a high-quality alternative to urban life, the Tefen Model has succeeded in attracting
business people and professionals from central locations as well as Israelis returning from
overseas, to develop their livelihoods and their families in the localities of the Industrial Parks.
The Industrial Parks are located alongside some of the highest quality residential environments
in the country, encouraging industrialists and populations of a higher socio-economic level
not only to invest in local industry, but in the social and cultural development of the region.
Local residents live and work in a flourishing environment in which they are partners in a
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shared endeavor, producing high-quality products efficiently in a place in which they love
to live and work.
A first-time visitor to the Industrial Parks is immediately impressed by the exceptional
environmental standards: by the spacious lawns surrounded by flowerbeds and the extensive
Kfar Vradim, Omer Industrial Park, home designs for the Lavon Village community
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collection of sculptures and other works of art. It is sometimes surprising to be reminded
that this clean, harmonious and aesthetic expanse is a hotbed of industrial development
and innovation.
“Quality of life for every worker is no cliché. It is a vital need for the
development of a country that seeks economic independence.”
The Tefen Model works on the assumption that the source of success lies with people.
The constant advancement of the workers’ quality of life is yet another crucial element
contributing to the synergy at the heart of the model. The dining halls, cafeterias, art
exhibitions and well-tended open spaces make the Industrial Parks much more than
just workplaces, but flourishing regional centers of life and activity.
High-quality residential areas such as Kfar Vradim and Lavon, situated in the vicinity of
the Industrial Parks, have successfully attracted high-quality manpower to Israel’s peripheral
regions. In keeping with the same conception, the Tel Hai Industrial Park was established
adjacent to Kibbutz Kfar Giladi, and the Omer Industrial Park next to Omer, an exclusive
residential suburb of Beersheba.
RESIDENTIAL ENVIRONMENT
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