The Tefen Model

The Tefen Model
Industrial Development for Economic Independence

Export Industries
Culture
Coexistence
Residential Environment
Education

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
The Tefen Model
An Integral Approach to Economic Development
Export Industries
Education
Professional Training
Industrial Entrepreneurship for Coexistence
Educating the Industrialists of the Future
Residential Environment
Culture
Coexistence
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5
7
7
15
25
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32
33
35
37
43
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A Success Story
The Tefen Model in Practice
About the Industrial Parks
The Results
Inside the Industrial Parks
Tefen Industrial Park
Tel Hai Industrial Park
Omer Industrial Park
Lavon Industrial Park
Current Developments
Dalton Industrial Park
Gebze Industrial Park, Turkey
Nazareth Industrial Park
At the Planning Stage
Rafah-Kerem Shalom Industrial Parks
Aqabah Industrial Park, Jordan
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An Expansion of the Model
Industrial Development for Economic Independence
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
In Conclusion – Opening a New Chapter
A Vision for a New Reality
Visitors Book
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97
97
98
103
107
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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
T H E T E F E N M O D E L - I N T R O D U C T I O N

5
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
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
T H E T E F E N M O D E L - I N T R O D U C T I O N

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

7
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
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.
T H E T E F E N M O D E L - I N T R O D U C T I O N

GDP per Capita in Middle East Oil States is Far Higher
than in Non-Oil States
(US$)
19,000 18,060 18,030
Oil States
9,370
7,230 8,200
Countries with no
market for their oil Non - Oil States
2,500 1,750
4,800
1,530 1,750 1,000 460
Qatar UAE Kuwait Bahrain Saudi
Arabia
Oman Iraq 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
8

9
MOROCCO
Towards Integration with Europe
North Atlantic Ocean
SPAIN
FRANCE
ALGERIA
ITALY
TUNISIA
TyrrhenianSea
LIBYA
CROATIA
Adriatic Sea
BOSNIA
ALBANIA
Gulf of Sidra
violence to those aspiring to be integrated in the world economy.”
GREECE
Mediterranean Sea
“Figures suggest that a GDP per capita of US $6,600 and above
marks the transgression point from societies fostering terrorism and
T H E T E F E N M O D E L - I N T R O D U C T I O N

24
FRANCE
21
ITALY
TURKEY
CYPRUS
16.5 16
SPAIN
EGYPT
ISRAEL
14 12.5 11
CYPRUS
GREECE
LEBANON
SLOVANIA
LEBANON
SYRIA
JORDAN
ISRAEL
5 5
GDP per Capita Around the Mediterranean Sea
(in thousands US$)
CROATIA
2.5
TURKEY
IRAQ
SAUDI
ARABIA
TUNISIA
ALGERIA
JORDAN
ALBANIA
BOSNIA & HERZ.
SYRIA
MOROCCO
US$ 6,600
2 2 2 1.5 1.5 1 1 1 1
EGYPT
WEST BANK & GAZA
Source: Australian Government
Department of Foreign Affairs
& Trade, 2004 (figures for 2002),
www.dfat.gov.au
FROM CONFLICT TO INDUSTRIAL DEVELOPMENT
10

11
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.
“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
T H E T E F E N M O D E L - I N T R O D U C T I O N

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
T H E T E F E N M O D E L - I N T R O D U C T I O N

FROM CONFLICT TO INDUSTRIAL DEVELOPMENT
14

15
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
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
T H E T E F E N M O D E L - I N T R O D U C T I O N

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
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17
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
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.
T H E T E F E N M O D E L - I N T R O D U C T I O N

“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
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Company Focus - On Track Innovations (OTI) Ltd.
www.otiglobal.com
In 1990, Oded Bashan and a small team of
engineers approached Eitan Wertheimer and his
father Stef with an innovative idea for an “electronic
purse” that would substitute cash for small
purchases, serve as a form of identification and
provide a convenient means for petrol purchases.
The start-up company was given a small space in
the Tefen Industrial Park to pursue their development
work.
“I am a strong believer in the value of the Tefen
Model,” confides Bashan, “especially in the
invaluable advantage the Industrial Parks provide
for young innovative companies. The Park
management was a big help assisting us with
various bureaucratic issues and was very patient
with the irregular cash flow of our new company.
The administration and infrastructure services
provided by the Park allowed us to dedicate our
attention to the difficult task of getting the company
up on its feet - which was crucial at that stage.”
The group founded On Track Innovations (OTI)
Ltd. in the Tefen Industrial Park in 1990 and
registered their first patent by the end of that year.
The small team struggled for two years, doing
engineering work to fund their development and
barely drawing salaries. “One of our first applications
was for the Iscar automated warehouses at Tefen,”
recalls Bashan.
Towards the end of 1992, OTI began to sell smart
card solutions to the Israeli kibbutz organizations,
which provided the company with an ideal “closed
campus” environment in which to apply and develop
its products. Now feeling ready to stand on their
own feet, the company chose to leave the protective
environs of the Industrial Park and build their own
facility in the vicinity of the Machanaim domestic
airfield in the Upper Galilee region.
OTI facilites in the Zahar industrial zone, Oded Bashan opens NASDAQ trading
T H E T E F E N M O D E L - I N T R O D U C T I O N

OTI products
From the outset, the company invested in the
creation of a high-quality work environment.
“I learned first hand from our development period
in the Tefen Industrial Park, that a comfortable and
attractive work environment contributes directly to
productivity and to a positive work atmosphere,”
confides Bashan proudly. “We applied here what
we learned in Tefen. Our investments in the
aesthetics of our surroundings have been a
worthwhile investment with fast returns.”
Today OTI is a leading provider of contactless
smart card solutions to a wide variety of global
markets and a publicly traded company on the
NASDAQ and Frankfurt stock exchanges. Oded
Bashan, Chairman, President and C.E.O. of OTI
now heads a team of 205 employees worldwide
with annual sales of $20 million, 95% of which are
for export. Some 90 employees, mostly engineers,
are employed at the OTI headquarters and research
and development facility in Israel; whereby sales
and marketing subsidiaries are located in Europe,
South Africa and the United States; and
manufacturing and testing facilities have been
established in Israel, Germany and the US.
20

The Tefen Model
An Integral Approach to Economic Development
“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

23
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
her neighbors.
Iscar Ltd., Tefen
THE TEFEN MODEL - AN INTEGRAL APPROACH

3BY Ltd., Tefen Industrial Park
24

25
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
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.
THE TEFEN MODEL - AN INTEGRAL APPROACH

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
26

27
B.A. Electronics Ltd., Tefen Industrial Park
THE TEFEN MODEL - AN INTEGRAL APPROACH

Techjet Ltd., Tefen
EXPORT INDUSTRIES
28

29
Company Focus- Ethrog Biotechnologies Ltd.
www.invitrogen.com
The initial business idea of Ethrog Biotechnologies
Ltd. was to develop frozen cow embryos for export
to dairy farms throughout the world. While working
on the research and development of their business
idea, the company made an innovative discovery
- disposable cassettes for the separation of DNA
molecules, “E-Gel”.
In the crucial race to identify the complete map
of human genes, this innovative patented product
allows for a faster, safer and more efficient
research process, reducing a time-consuming
and risky research process into one simple and
convenient step.
Four years after the establishment of the company
in 1993, Ethrog decided to set up a production
plant and began looking for a suitable location.
The company chose to establish the plant in the
Tel Hai Industrial Park in the Upper Galilee region.
“Our location decision for the production plant was
based on cost considerations and the convenience
Uri Yogev, Ethrog products
of the area, close to Kibbutz S’de Nechemia where
I grew up,” explains Uri Yogev, General Manager
and co-founder of the company.
Located in Priority Development Area A, the
location offered the start-up company government
incentives for investment in industry, together with
the lower rental costs of the space in Tel Hai
and the competitive costs of suppliers and
sub-contractors in the region, as compared with
the center of the country. “There was no other
place like the Tel Hai Industrial Park in the region,”
continues Yogev, "the advantages provided by the
Park were important for a start-up company like
ours, seeking to grow and sell ourselves to potential
clients and investors.
“The attractive environment and the image of
the Park definitely helped us present ourselves
successfully to investors. The flexibility and
understanding of the management of the Park
were also very important to us. Our company has
THE TEFEN MODEL - AN INTEGRAL APPROACH

Ethrog product for HT protein analysis
tripled in size since establishing the production
plant in the Tel Hai Industrial Park, and the
services and modular buildings in the Park have
provided a very comfortable and convenient
environment throughout our growth.”
The company also benefited from the close
proximity of the Park to the neighboring Tel Hai
College. “The recruitment of graduates in our field
was very effective here,” remarks Yogev, “for both
technical and academic staff. The quality of life in
this area of the country also makes it an attractive
residential option. Once people find fulfilling work
here, they become very loyal to the area and worker
turnover is much lower than in other areas of
the country.”
In 2000, Ethrog Biotechnologies Ltd. was
acquired by the Invitrogen Corporation. Based in
California USA, Invitrogen employs 2,500 workers
and has annual sales of some $650 million. Ethrog
Ltd., now a wholly-owned subsidiary of the
corporation, employs 25 workers in the Tel Hai
production facility and 15 in the management and
research and development offices in the Ness-
Ziona Science Park in the center of the country.
In light of the commercial success of Ethrog’s new
product lines for DNA and HT protein analysis, the
company is now considering expanding its
production facilities in Tel Hai.
30

31
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
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
THE TEFEN MODEL - AN INTEGRAL APPROACH

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.
EDUCATION
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33
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
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
THE TEFEN MODEL - AN INTEGRAL APPROACH

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
34

35
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.
“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
THE TEFEN MODEL - AN INTEGRAL APPROACH

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
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37
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
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
THE TEFEN MODEL - AN INTEGRAL APPROACH

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
38

39
A home in Kfar Vradim
Kfar Vradim – The Village that
Grew by the Park
Kfar Vradim was established in 1981 on the
understanding that an offer of a high-quality of family
life would be needed in order to attract professional
manpower of a high standard away from the
country’s urban centers to the Galilee. Thus, at a
five-minute drive from the site of the planned Tefen
Industrial Park, a unique village community sprang
to life. Initiated by Stef Wertheimer as part of the
Tefen vision, the village was developed with the aim
of maintaining exceptionally high environmental
aesthetics alongside a broad, well-developed range
of educational, social and cultural activities.
Now a local municipality, the village is home to
1,300 households and 5,500 inhabitants. The village
was planned to ensure the integration of residential
homes in their natural setting, with maximum
conservation of the natural woodlands. Great
emphasis is placed on education and a host of
social and cultural activities for residents of all ages
is offered. The local municipality provides a wide
range of professional services to ensure the
maintenance of a healthy and attractive community.
Having won a series of national awards from the
Council for a Beautiful Israel, Kfar Vradim is renown
throughout Israel as a desirable location offering
a high quality of family life.
THE TEFEN MODEL - AN INTEGRAL APPROACH

An overview of Lavon - Village Community and Industrial Park
The Lavon Village Community
In keeping with the Tefen Model conception that
advanced industry must be developed alongside
high-quality residential areas, the Lavon Industrial
Park was established in 1998 among the hills near
Tefen alongside a young and rapidly growing village
community - Lavon.
Set among breath-taking scenery and a
five-minute drive from the lively town of Carmiel,
residents can enjoy a wide range of services,
including culture and sports facilities. Lavon offers
a thrilling opportunity for young families from all
over Israel. To date, over 50 families have joined
the community, which lies in the jurisdiction of the
Misgav Regional Council, whereby 40 private homes
have already been built, with another ten currently
under construction. Still in its early stages, the
community continues to grow, with plans for another
400 homes and a local commercial center.
RESIDENTIAL ENVIRONMENT
40

41
Play area, Kfar Vradim
THE TEFEN MODEL - AN INTEGRAL APPROACH

RESIDENTIAL ENVIRONMENT
42

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Culture
Art and Creativity
The cultivation of art and creative pursuits is an integral and inseparable element of the
world-view presented by the Tefen Model. The concepts of art and creativity permeate and
enrich all aspects of the Model, in their collective creation of an enriching and supportive
work and recreational environment.
An impressive range of museums has been established within the Industrial Parks, offering
a rich variety of cultural activities, including changing exhibitions of contemporary Israeli art
and extensive sculpture gardens. The Museums attract numerous visitors to become
acquainted with the Tefen Model, while serving to inspire and enrich the work atmosphere
of the resident companies. A quality work environment, with an emphasis on creativity and
excellence, inspires pride in one’s work and the production of quality products that form
the foundation of a successful industry.
Visitors centers and education departments have been established in the Tefen, Tel Hai
and Omer Industrial Parks to promote the concept of industry and technology in education.
Visitors of all ages are instructed in a wide range of activities focusing on the synergy of
artistic creativity and manufacture. Together, the Museum exhibits, the works of art and the
industrial installations of the companies in the Industrial Parks provide for a comprehensive
Views from the Sculpture Garden and the Classic Automobile Collection, Tefen Industrial Park
THE TEFEN MODEL - AN INTEGRAL APPROACH

learning experience in a unique environment. Facilities include an auditorium, art galleries,
industrial exhibits and a range of multi-media tools.
Close to 150,000 visitors a year, most of them school children, are exposed to the concept
of industry as a challenging creative pursuit and as an integral part of community and cultural
life. The education departments also offer a range of supplementary courses for teachers
and educators. The special programs developed aim to connect between the world of
theoretical education and the practical world of art, industry and environmental quality.
“A museum, to me, is one factor that makes a place worthy of becoming
a home. Schools, education, and security come first, of course, but a
place without culture is not worth living in. A museum is a cultural
need of the first order.”
CULTURE
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45
Ilan Averbüch, “Promises, Promises”, 1994 The Open Museum, Tefen Industrial Park
THE TEFEN MODEL - AN INTEGRAL APPROACH

CULTURE
46

47
The Industrial Park Museums
Tefen – The Open Museum and
Sculpture Garden
The works exhibited represent the multi-faceted
nature of Israeli art, featuring a wide range of
mediums. Changing exhibits are presented in the
Museum gallery every few months, for each of
which the Open Museum issues a research
catalogue, in cooperation with renown art critics
from Israel and overseas.
Exhibitions have featured works by many veteran
Israeli artists, among them Yacob Steinhardt, Rudi
Lehman, Naftali Bezem, Avraham Ofek and Jean
David, as well as younger artists such as Ilan
Orbach, Danny Fine, Noam Ben-Yacov, Sasha
Okon and David Gabriely.
Among the impressive programs organized over
the years, significant group exhibitions of sculpture
have included: “Searching for Identity” (1988), “Art
Focus” (1991), “Signposts” (1998), and “The Limits
of Sculpture” (2002).
Omer – The Open Museum
The Open Museum at the Omer Industrial Park
brings exhibitions of contemporary Israeli art to the
southern periphery of Israel. The changing sculpture
exhibitions form a distinctive aspect of the Park’s
impressive landscaping and have included openair
exhibitions such as Ofra Zimbalista’s “Blue
Garden,” David Gabriely’s “Human Profile,” and
Zvika Lehman’s “Angusim.”
The Museum gallery presents original changing
exhibitions of Israeli art, which have included a
paper art exhibit by Leah Nikel, and a group
exhibition of other Israeli paper artists.
Tel Hai – The Open Museum
of Photography
The Sculpture Garden and Open Museum, Tefen Industrial Park
On the far northern border of Israel, the Tel Hai
Industrial Park is home to the Open Museum of
Photography: The only museum in Israel devoted
entirely to photographic works and an influential
element in the Israeli art world.
THE TEFEN MODEL - AN INTEGRAL APPROACH

The museum exhibits changing exhibitions of
works by leading Israeli and international
photographers, featuring all aspects of the art of
photography: artistic, historical, documentary,
technical, digital and practical. The Museum hosts
a wide range of seminars and forums and plays
host to exhibitions of work by graduates of Israel’s
higher schools of photography.
Tefen – The Museum of
German-Speaking Jewry
Opened in 1996, the museum is devoted to the
contribution throughout history of German-speaking
Jews to world culture, German culture and the
State of Israel. A large portion of the museum is
dedicated to the great contribution by immigrants
from German-speaking lands (known as “Yekkes”)
to the State of Israel, its economy and culture.
Exhibits include some 450 personal photos and
a video feature documenting the fascinating life
story of Yisrael Shiloni, the museum’s founder,
against the turbulent background of the events
of the 20th century.
The museum houses a library of some 3,500
books and an archive of artifacts, documenting
family legacies from their German origins and
through their subsequent life in Israel.
Tefen & Tel Hai – Classic
Automobile Collection
The antique automobile exhibits at the Tel Hai
and Tefen Industrial Parks feature a rare collection
of some 60 different automobile models, dating
from the beginning of the 20th century to the
present. This rare private collection is the largest
of its kind in Israel and one of the largest in
the world.
The automobile collection is a prime attraction
to visitors, providing an illustration of industrial
development through the car industry in Israel
and around the world. Some of the automobiles
have undergone lengthy, painstaking restoration,
whereby all of these magnificent machines have
been restored to road-worthy condition.
Tefen – The Art of Industry Museum
The youngest of the museums at the Tefen
Industrial Park is devoted to the history of industry.
On display in the museum is a collection of
machining and cutting tools, dating from
prehistoric times to the present.
The museum presents the process of industrial
technological development, which began in the
20th century in the field of metalworking and
machine-tooling. The exhibits examine this
development in terms of work processes,
precision levels and the quality of tooling.
Recently installed in the museum is a handson
exhibit from the Villete Technological Museum
in Paris. The new exhibit will provide pupils
nationwide with the opportunity to experience
industry firsthand through activities involving the
design, manufacturing and marketing of products.
CULTURE
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49
David Gerstein, “Ladder of Motifs”, 1994, The Open Museum, Tefen Industrial Park
THE TEFEN MODEL - AN INTEGRAL APPROACH

Menashe Kadishman, “Birth”, 1989, The Open Museum, Tefen Industrial Park
CULTURE
50

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Asaf Lipshitz,“Figure with Hoop”, 1996, The Open Museum, Tefen Industrial Park
THE TEFEN MODEL - AN INTEGRAL APPROACH

CULTURE
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Coexistence
Industry as a Means of Achieving Economic Equality
and Stability
On the Israeli landscape, the Tefen Model Industrial Parks are landmarks of the successful
collective endeavor of local Arab, Druze and Jewish populations. The Tefen Model strives
to achieve mutual understanding and cooperation between all sectors of the Israeli population
through the pursuit of common goals of regional development and prosperity. A stable and
sustainable development process can be achieved only if all sectors of society are involved
and committed to these goals.
All of the Industrial Parks are located in regions with a large proportion of non-Jewish
populations. On a local scale, the Industrial Parks seek to strike roots in all of the surrounding
communities. The Tefen Model adopts a pro-active approach by creating, and not merely
advocating, equal opportunities. Non-Jewish populations are targeted for recruitment for
professional training and employment in local industry. Working and studying together in
industry provides a rare opportunity for positive interaction and for establishing contacts on
an equal basis, among all of the region’s inhabitants, regardless of religion.
Arab and Druze entrepreneurs are actively sought through local communities and economic
organizations to be recruited into the entrepreneurship courses and other industrial programs
run by the Industrial Parks. Arab-speaking instructors work with local school children to
ensure that significant ties are formed with all of the communities local to the Industrial
Parks. Furthermore, this strong belief in the ability of industry to implant the values of
coexistence has led to the planning of the first Jewish-Arab Industrial Park in the Arab
city of Nazareth.
“When all earn their livelihood at the same place, living together in
peace and harmony simply comes naturally.”
THE TEFEN MODEL - AN INTEGRAL APPROACH

The Government of Israel and the Palestinian Authority have both adopted the idea of
establishing Industrial Parks. Initial steps have been taken to establish twin Industrial Parks
on either side of the Israeli-Palestinian border, at Kerem Shalom and Rafah. The current
political situation has led to the freezing of the project, to be resumed as planned as soon
as the situation allows.
According to the conception behind the Tefen Model, the establishment of Industrial Parks
in border areas and at the flashpoints of the Israeli-Arab conflict can change the future
reality: The development of industrial enterprises will contribute to raising standards of living
and education, and assist in promoting constructive, practical neighborly relations. We
believe that the establishment of Industrial Parks in regions of conflict can create a positive
and productive force, powerful enough to overcome the destructive forces of historic enmity
and religious fundamentalism.
The advancement of the economy of the entire region and the promotion of the potential
of a lasting peace between Israel and its Arab neighbors can be achieved through shared
endeavor, in pursuit of common goals.
“The more the per capita income rises - the more the tendency toward
democracy grows and the power of religious fundamentalism is moderated.”
On site of the planned Rafah-Kerem Shalom Industrial Parks, Support of Bedouin women
entrepreneurs at the Omer Industrial Park, Stef Wertheimer and guests
COEXISTENCE
54

A Success Story
The Tefen Model in Practice
“With 20 more Industrial Parks like these, it would be
possible to double the industrial export output of Israel.
This would completely change the economic, social
and security situation.”
Yitzhak Rabin

57
About the Industrial Parks
The Industrial Parks are, in effect, incubators for the development of young industry. The
primary goal of the Parks is to support and encourage the development of private manufacturing
initiatives, geared towards export.
The support package offered by the Industrial Parks provides resident entrepreneurs with
a nurturing, secure environment, while supportive professionals and veteran industrialists
provide assistance with administrative and bureaucratic solutions. The removal of operational
and logistical obstacles enables the resident entrepreneurs to devote the bulk of their efforts
to manufacturing and marketing, where their competitive edge should lay. Resident companies
enjoy a comprehensive range of services, including a central dining room, coffee shop,
postal and bank services, maintenance, round-the–clock security, landscape gardening,
cleaning services, and manpower and other business services.
The Industrial Parks create a lively business environment for the companies situated in
the Park itself, and for industry in the surrounding region. Through activities such as business
forums, seminars and exhibitions based in the Industrial Parks, the Park administration
seeks to promote industrial and economic development in the region as a whole.
A great deal of attention is devoted to the development of a highly aesthetic natural
environment, including the integration of art works by Israel's finest artists in the intimate
sculpture gardens and the expanses of environmental sculptures. A key element in the
Plasel Ltd., Lavon Industrial Park
THE TEFEN MODEL - A SUCCESS STORY

DCD Ltd., Tefen Industrial Park
implementation of the Tefen Model in Israel, the Industrial Parks provide the platform for
a wide range of educational and cultural activities. Facilities include an auditorium, art
galleries, interactive industrial exhibits, a range of multi-media tools, board rooms and
activity workshops.
The economic benefits and quality of life offered by the Industrial Parks are an attractive
package for companies and managers from the knowledge-intensive industries in Israel and
around the world. The Industrial Parks are all located in national priority development areas,
whereby industry settling in these regions qualifies for the highest level of government
benefits, in the form of industrial grants and tax relief.
ABOUT THE INDUSTRIAL PARKS
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Tefen Industrial Park, Overview
THE TEFEN MODEL - A SUCCESS STORY

ABOUT THE INDUSTRIAL PARKS
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The Results
The Industrial Parks have made an extensive impact on their local regional economies,
generating growth, prosperity and progress. The conception of the Industrial Parks is by
no means that of a real-estate project, whereby industrial space is constructed for rent, but
rather that of an investment in human capital and in the generation of synergy between
industrial development and educational initiatives.
After establishing their businesses in the Industrial Parks, many innovative companies
grow, attracting more skilled workers to the region, and later construct their own facilities
in the locality. Since the first Industrial Park was built in 1985, the Parks have provided a
nurturing environment for more than 160 companies, which today employ 3,750 workers
and achieve collective sales of some $500 million, 80 percent of which are for export.
Over 10 percent of Israel’s total industrial exports are manufactured in industries that have
developed within the framework of the Tefen Model. The occupancy rate in the Parks
currently stands at 90 percent, much higher than in any other industrial area in Israel.
The yearly output per worker is valued at $155,000, a level comparable to that of
Western nations.
The development of the Industrial Parks has served to bring the outlying areas of Israel
closer to the country’s central urban areas, through the generation of profitable business
relations and their influence on the up-grading of transportation infrastructures, including
roads, public transportation and air travel.
All of the Industrial Parks are located in close proximity to academic institutions of higher
education, giving rise to initiatives of cooperation in fields of education and employment in
industry, and adding to the developmental impact on these outlying regions. The Industrial
Parks encourage entrepreneurial activity and the training and education of entrepreneurs,
working in close cooperation with local academic institutions to provide courses in technological
and industrial entrepreneurship with a focus on export markets. The Industrial Parks also
T H E T E F E N M O D E L - A S U C C E S S S T O R Y

TURKEY
EGYPT
Istanbul
Mediterranean Sea
Gebze
The Tefen Model Industrial Parks
SYRIA
Ashdod
Tel Aviv
Beer Sheva
Haifa
Gulf
of
Aqaba
Netanya
Jerusalem
LEBANON
Dead Sea
JORDAN
Tel Hai
Dalton
Tefen
Lavon
Nazareth
Omer
SYRIA
THE RESULTS
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work in cooperation with government ministries to provide practical training programs for
industry, whereby graduates are provided with the opportunity to work in local industry in
their fields of specialization.
The museums located in the Industrial Parks and their rich programs of activity enhance
local cultural development and education. The visitors centers at the Industrial Parks provide
an important platform for the promotion of the Industrial Park concept. A highly-trained staff
instructs visitors of all ages in a wide range of activities focusing on the synergy of artistic
creativity and manufacture. Close to 150,000 visitors a year are exposed to the concept
of industry as the basis for regional development and an integral part of community and
cultural life.
The Tefen Industrial Park Model has proved its success consistently over the past 20
years. Industrial leaders and economic experts from Israel and abroad, acquainted with the
Model's implementation, are convinced of its ability to transform the industrial map of this
region of the world. Replication of the model in other peripheral locations, in border areas,
and in areas with the potential for residential development, can significantly advance the
entire region, both economically and culturally, through the creation of gainful employment.
“The solution is local industries, entrepreneurship and the finest
professional education. We must create the conditions to enable
entrepreneurs to succeed not only in Tel Aviv, but also in the outlying
regions of the country.”
T H E T E F E N M O D E L - A S U C C E S S S T O R Y

Annual Sales per Employee
European
Average US$160,000
147,000
Israel Industrial Parks Iscar
Israel - Industrial Export Rates
37%
155,000
80%
200,000
99%
Israel Industrial Parks Iscar
Sources: The Central Bureau of Statistics of Israel, 2003, www.cbs.gov.il
The World Bank Group, 2003, www.worldbank.org
THE RESULTS
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Number of Companies that Began their
Activities in the Industrial Parks
2
21
29
52
1985 1988 1991 1994 1997 2000 2003 2010
T H E T E F E N M O D E L - A S U C C E S S S T O R Y
98
129
162
250

Sales of Companies that Began their Activities
in the Industrial Parks
(Million US$)
4
31
195
1,000
1985 1990 1995 2001 2003 2010
458
5500 Employees
3750 Employees
500
THE RESULTS
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Company Focus- SanDisk Israel Ltd.
www.sandisk.com
In 1990, Simon Stolero took a sabbatical from
his position in Israel to work for SanDisk Ltd. in
Santa Clara California, USA. The company was a
start-up specializing in flash memory storage
solutions, co-founded and managed by an Israeli
entrepreneur - Dr. Eli Harari. During this time, Stef
Wertheimer visited SanDisk as part of a visit to the
US to encourage Israeli industrialists to return to
invest in Israel. Dr. Eli Harari was taken by Stef’s
message and promised to visit him in Israel when
the time was right.
Some six years later Harari contacted Stolero
and proposed that he set up a subsidiary of SanDisk
in Israel. They planned to visit a series of venues
suitable for hi-tech companies throughout the
country and began their search at Tefen with a
meeting with Stef Wertheimer. “After visiting the
Tefen Industrial Park, Eli sat in Stef’s office
overlooking the view of the Galillee,” recalls Stolero,
SanDisk products
“and decided that he didn’t want to see any other
locations. He fell in love with the place. We set up
SanDisk Israel Ltd. in the Tefen Industrial Park
shortly afterwards.
“The company was created with the mission
to be innovative and to focus on new areas of
development. We began with just six people
and an association with Siemens to develop a new
multi-media card standard. Our product lines have
expanded over time and today we employ 45
development staff in Tefen and have seven of
our staff located at our company on the US.
“We have recruited a high-quality team over the
years, often attracting young, educated families to
relocate to the vicinity of Tefen. We have ten families
living in the nearby Kfar Vradim, many in the same
neighborhood. Those who have moved to the
region have invested in the higher quality of life
here and in their future at SanDisk.
T H E T E F E N M O D E L - A S U C C E S S S T O R Y

Eli Harari, Simon Stolero and Stef Wertheimer
“Our development center here in Tefen has
expanded four times over the years. At each stage
we have enjoyed the flexibility of the Industrial Park
infrastructure in accommodating our various needs.
In recent years we have invested more in building
public awareness of our company here in Israel.
We stress the fact that we are located in the northern
periphery of the country and are proud to be a part
of developments in the Galilee - in Tefen.”
SanDisk Israel Ltd. is a fully-owned subsidiary
of the SanDisk Corporation, the world’s largest
supplier of flash memory data storage card
products. The corporation has some 900 employees
worldwide and annual sales of $1.7 million. SanDisk
Israel Ltd. develops one of the leading product
lines for the worldwide Corporation.
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Inside the Industrial Parks
Tefen Industrial Park
Tefen, the first of the Industrial Parks was established in 1985 on a rocky ridge in the Tefen
district of the Western Galilee, a far northern part of Israel. The Park incorporates 22,000
square meters of industrial space in a 30-acre area, along with an administration and service
center comprising 2,000 square meters.
The Park houses numerous industrial export companies, four museums, a sculpture
garden, a visitors center and a school.
“Words cannot describe Tefen’s contribution to B.A.’s success. There
is an ethic of excellence here, of constant challenge, of a vision that goes
beyond satisfying today’s needs - to what will work better tomorrow.”
Dror Ohayon – B.A. Electronics Ltd., Tefen Industrial Park
Open daily to visitors, the Industrial Park hosts school field trips and other group visits
from all over Israel. The visits include a rich program of creative workshops and instructed
visits to the museums and manufacturing facilities in the Industrial Park. The “Tefen Festival”
is held each year during the holiday of Sukkoth: a family celebration of the arts, creativity
and industrial achievement. The festival draws tens of thousands of visitors from local
communities and from all over the country.
THE TEFEN MODEL - A SUCCESS STORY

Tefen Industrial Park
Among the Resident Companies
in the Tefen Industrial Park:
Kolsint Ltd. is a small enterprise established in
the Tefen Industrial Park in 1993, in partnership
with Elscint Ltd. Today the company supplies over
50 percent of the world market of colimators -
lenses for imaging cameras used in the field of
nuclear medicine.
Stepak L.A. Ltd. has been resident at the Tefen
Industrial Park since 1993, manufacturing sterile
packaging for the storage and extension of the
shelf life of fruits and vegetables and for medical
products. Currently under expansion, the company
has branches in England, Brazil and the West
Coast of the U.S.
SanDisk Israel Ltd., established in the Tefen
Industrial Park in 1996, is a daughter company of
the SanDisk Corporation - the largest manufacturer
of flash memory in the world, supplying the medical,
industrial, military and commercial markets.
INSIDE THE INDUSTRIAL PARKS
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Art of Industry Museum
Disk Factory Shop,
D.C.D Line Ltd.
German-Speaking
Jewry Museum -
The Heritage Center
of the Fifth Aliyah
Main Building:
Introductory Films
Visitors Center
Education Dept.
Cafeteria & Restaurant
Museum Shop
A Visitors Guide to the Tefen Industrial Park
T H E T E F E N M O D E L - A S U C C E S S S T O R Y
Entran

ce
Tefen Regional School
Factory Shop,
“Gamila Healing Soap”
Art Gallery
Antique Car Collection
Glass Factory Shop,
Andreas Meyer Ltd.
INSIDE THE INDUSTRIAL PARKS
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Tel Hai Industrial Park
The Tel Hai Industrial Park was established in 1992 in the far northern reaches of the Galilee
region, near the town of Kiryat Shemona, in the heart of one of Israel’s greenest and most
beautiful landscapes.
Resident at the Park are 10 innovative companies employing some 200 workers. Among
them are companies such as Tadiran Communications and BMC Software, proving that
advanced industry can succeed and grow in outlying regions, far removed from the country’s
central urban region. Tadiran Communications has moved the bulk of its manufacturing
operations from the center of Israel to the Tel Hai Industrial Park, thereby increasing worker
productivity due to the high motivation of the local workforce.
Also located in the Park is the Open Museum of Photography, the only one of its kind in
Israel, with exhibitions on display of work by photographers from Israel and abroad.
The museum’s visitors center conducts a variety of activities and study programs for a wide
range of visitors of all ages on the topics of industry, creativity, art and photography.
The Industrial Park maintains mutually beneficial relations with the neighboring Tel Hai
Academic College. Companies located in the Park work in close cooperation with the
technology departments of the college to maximize their recruitment of local graduates,
often influencing the content of current study programs.
Tel Hai Industrial Park
THE TEFEN MODEL - A SUCCESS STORY

Tel Hai Industrial Park
Among the Resident Companies in
the Tel Hai Industrial Park:
BMC Software Ltd. is one of the largest software
companies in the world, employing some 6,000
workers in 50 countries. The company operates
two plants in Israel, one of which is located in the
Tel Hai Industrial Park. Established in June 2000,
the Tel Hai plant is valued as a suitable venue for
growth and development of company activities,
due to the combination of relatively low costs and
high productivity.
Tadiran Communications Ltd., owned by
American investment corporations, moved its
manufacturing plant to the Tel Hai Industrial Park
in 1999. The plant manufactures communications
equipment for the security services. The plant sells
its products to 40 countries worldwide, at an
annual value of some $200 million.
INSIDE THE INDUSTRIAL PARKS
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Omer Industrial Park
The Omer Industrial Park was established in 1995 alongside the exclusive residential
community of Omer and the city of Beersheba, in the dramatic Negev desert landscape in
southern Israel. Today, there are 30 companies resident in the Park specializing in the
development and manufacture of advanced technologies and employing some 500 workers.
The Omer Industrial Park has established many projects of successful cooperation with
the nearby Ben-Gurion University of the Negev, whereby a large proportion of the Park’s
employees are students and graduates of the University. The Park aims to attract to the
Negev region non-polluting industrial enterprises with a strategic focus on export markets.
The first stage of the Industrial Park encompasses 21,000 square meters of industrial
space in a landscaped park covering some 23 acres. The implementation of the expansion
of the Park is now underway, whereby a second stage is planned to provide a further 45,000
square meters of industrial space in modular constructions, which can be adapted easily
to the specific needs of the resident companies. The first building of the second stage
has been constructed and provides a high-quality environment for the resident
hi-technology companies.
The Open Museum at the Omer Industrial Park presents a dynamic program of changing
exhibits of works by leading Israeli artists.
New Hi-Tech Building, Omer Industrial Park
THE TEFEN MODEL - A SUCCESS STORY

Omer Industrial Park
Among the Resident Companies in
the Omer Industrial Park:
Lomar Projects Ltd. manufactures electrical and
control boards for infrastructure projects, working
extensively with the industrial plants of the Negev
region and conducting specialized projects all
over Israel.
Luzzatto & Luzzatto Ltd. was established in Milan,
Italy, over 130 years ago. When the Omer Industrial
Park was established, the company opened an
office in the Park providing services of patent
registration and protection of intellectual property
and copyrights. The company’s Israeli branch
has 75 employees and represents clients from
Israel and abroad, including large pharmaceutical
companies and security organizations.
Freescale Semiconductor Israel Ltd. is a subsidiary
of Freescale Semiconductor, a leading global
semiconductor company, formerly the
Semiconductor Products Sector of Motorola.
The Israeli company has a development and
planning branch in the Omer Industrial Park
with 60 employees, and is responsible for key
development areas in the markets in which the
global company has become a world leader.
INSIDE THE INDUSTRIAL PARKS
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Lavon Industrial Park
The Lavon Industrial Park was established in 1988 just south of Tefen, with a panoramic
view over the Gush Segev region and the attractive city of Carmiel. The Industrial Park is
the implementation of an integrative model that locates a quality residential community
alongside a park of advanced industry and an educational center, all within strolling distance
of each other.
The “Zur Lavon” educational center, located in the Park, provides a varied program of
training courses for industry. Much in demand is the industrial entrepreneurship course for
Arab and Jewish populations, a collaborative initiative between the Industrial Parks, and the
Executive Education Center of the Tel Aviv University.
“Here we have the opportunity to grow in a stimulating environment
and to learn from people who have a vast amount of experience. Right
now, this really helps us to compete on international markets.”
Eran Werner - P.C. Composites Ltd., Lavon Industrial Park
The high-quality residential area and industrial center serve to attract young professionals
and their families from Israel’s central urban areas, to enjoy a higher quality of life in the
Galilee region.
Lavon Industrial Park
THE TEFEN MODEL - A SUCCESS STORY

Ilan Averbüch, Divided World, Lavon Industrial Park
Among the Resident Companies
in the Lavon Industrial Park:
Plasel Ltd., established in 1992, specializes in
the manufacture of injection molds and the highvolume
production of plastic precision parts in two
of the most advanced and highly sophisticated
manufacturing plants in the country. Under the
label of Metallicone, the Plasel group also specializes
in the manufacture of precision-machined metal
parts for high value-added industries in Israel
and overseas.
Kolibri Ltd. was established in Lavon in 2000
and specializes in the development and marketing
of industrial spindles with a unique patented
development that enables the design of smaller,
lighter and more precise mechanical systems.
Powder Coating (P.C.) Composites Ltd. started
out in late 2001 at the Meitav Technological
Incubator in Kiryat Shemona. The company has
developed an innovative and versatile production
process for “Prepreg”, the intermediate product
used by the composite material industries. The
company’s unique coating process is expected,
in the coming year, to generate sales valued at of
hundreds of thousands of dollars.
INSIDE THE INDUSTRIAL PARKS
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Current Developments
Images of the Dalton Industrial Park
Dalton Industrial Park
In the summer of 2004, construction began of a new Industrial Park, based on the Tefen
Model, on the Dalton plateau in the Lower Galilee region of Israel. This new Industrial Park
is being built in the Dalton Industrial Area, with a breathtaking view encompassing Mt.
Hermon, Mt. Meron, the Huleh Valley, and the Sea of Galilee. Plans provide for the construction
of 8 industrial buildings in a park area of some 25 acres and include the development of
cultural educational and programs, and a system of support services for park residents.
The Dalton Industrial Park lies in a region currently undergoing accelerated infrastructure
development and is located within a 10-20 minute drive from local urban centers and a 15
minute drive from the Machanaim domestic airfield, providing regular flights to the center of
the country. Quality residential opportunities are available in the rural communities neighboring
the Park, many of which have developed flourishing enterprises in rural tourism.
THE TEFEN MODEL - A SUCCESS STORY

CURRENT DEVELOPMENTS
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Gebze Industrial Park, Turkey
The first Tefen Model Industrial Park to be established in Turkey is under construction in the
Gebze industrial area, some 40 km southeast of Istanbul. The Park is a joint initiative of the
Industrial Parks, together with the Gebze Organised Industrial Zone, the Sabanci University,
the Kocaeli Chamber of Industry, the Gebze Chamber of Commerce and the Kocaeli University.
Currently active in the vicinity of the Industrial Park are several local and foreign companies.
The Industrial Park itself will place emphasis on advanced technological industries and the
encouragement of local entrepreneurship.
The Industrial Park is being established within the framework of “The Technopark Law,”
recently adopted by Turkey, which offers extensive tax benefits to companies and workers
located in the Park. The Sabanji University is working in close cooperation with the Tel Aviv
University to provide comprehensive educational programs for the training and support of
local entrepreneurs.
Located at the crossroads of Europe and Asia, Turkey provides an attractive range of
competitive advantages and a dynamic environment for foreign investment.
The first stage of the Industrial Park is due to be completed in the first quarter of 2005,
whereupon the 25 industrial enterprises recruited will begin to establish themselves
within the Park.
Nazareth Industrial Park
Also in advanced stages of planning is the Arab-Jewish Industrial Park due to be established
in Nazareth. An ideal location was found on the outskirts of the city, overlooking a magnificent
view of Nazareth and of the Yisrael Valley. The Park will serve as a model of Jewish-Arab
cooperation in this field and promote coexistence and entrepreneurial partnership, with an
emphasis on export industries.
THE TEFEN MODEL - A SUCCESS STORY

Image and plans of the Gebze Industrial Park, Turkey
Image of the Nazereth Industrial Park
CURRENT DEVELOPMENTS
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At the Planning Stage
Rafah - Kerem Shalom Industrial Parks
Two Industrial Parks, based on the Tefen Model, are planned on either side of the Israeli-
Palestinian border in the Rafah area, near the Gaza airport. Currently on hold since the
onset of the current “Intifada”, implementation of the plans for the two Parks will provide
for full Israeli-Palestinian cooperation. The project is intended to promote the development
of private initiative and to generate a concentration of industrial and commercial activities
in the region. The plan's implementation will greatly increase the standard of living in this
conflict stricken area and provide much-needed jobs for the many unemployed.
Aqabah Industrial Park, Jordan
The Jordanian city of Aqabah, situated at the hub of four countries, has excellent transportation
infrastructures including a large seaport and a nearby airfield. Businesses located in Aqabah
also enjoy additional advantages including incentives for investment and development, tax
relief, available manpower, free trade agreements with the United States and Europe, and
governmental assistance in recruiting and training potential workers.
The planned Aqabah Industrial Park will increase the per capita gross product in the area,
increase exports, and provide for the development of a technological educational system
to train workers for industry.
Construction at Tefen
THE TEFEN MODEL - A SUCCESS STORY

Images and planned overview of the Aqabah Industrial Park, Jordan
AT THE PLANNING STAGE
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An Expansion
Of the Model
“We believe that the economic relations and trade relations
between the countries in the region will eventually help
the stability of this region of the world, a region that has
big potential.”
Ali Babacan, Minister of State, Turkey

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Industrial Development for
Economic Independence
The violent conflict in the Middle East presents a seemingly hopeless situation. The conflict
is further fueled by the gaping economic disparities in the region and the blatant lack of
opportunities for employment and social development. The demographic situation threatens
more of the worst, a future that we cannot afford.
Close to 50 percent of the population in the Gaza Strip and 37 percent of the Jordanian
population are under the age of 14, as compared to 21 percent in the US and 27 percent
in Israel. This is a wonderful resource that should not go to waste. The youngsters in the
Gaza strip face the prospect of a 60 percent unemployment rate. In the absence of meaningful
employment they will seek alternative activities (CIA, The World Fact Book 2000, www.cia.gov).
“It might be a dream today, but I think it should be fact tomorrow.”
Suleman Demirel, Former President of Turkey
If we were to re-draw the map of the Middle East to define economic characteristics rather
than political boundaries, we would differentiate between the oil-producing states of the
Gulf and the non-oil states in the east. The oil wealth of the Gulf States has created an
enormous economic disparity and inequality within the region, whereby, for example, the
GDP per capita in Kuwait is around tenfold that in Jordan.
The wealth of the oil nations is a paradox that can be seen to hinder rather than to
contribute to the advancement of the region. Much of the revenues from oil are not invested
in the region, but in the West. The wealth from oil offers neither security nor support to the
poorer nations, who suffer very high unemployment with little means for generating growth.
It is, in fact, through the development of the non-oil countries that a bridge may be formed
between the Arab World and the West. The Eastern Mediterranean nations, with their desire
for economic development and a willingness to form relations with European cultures
and markets, provide the first avenue for advancement. The means of empowering and
T H E T E F E N M O D E L - A N E X P A N S I O N

stabilizing these societies are through the development of industrial infrastructure, which,
in turn, will create jobs and promote technological education and the generation of local
entrepreneurial initiative.
Industry is the engine of economic stability. In recent history, industrialization has propelled
the economic advancement of Taiwan, Singapore, Hong Kong and South Korea. The drive
for their industrialization and economic self-sufficiency was initially fuelled by the American
aid following World War II. These Asian Tigers had few natural resources, yet they developed
thriving export markets and became strong players in the global economy. The Middle East
should emulate the success of these nations to raise income standards and close the income
gap between the Arab states and the industrial nations (Arab Human Development Report 2003,
United Nations Publications).
In just 40 years, South Korea has increased its GDP tenfold and, by doing so, has reversed
a bleak historical trend. At the close of the Japanese occupation of Korea in 1945 the
country was devastated, after one of the most destructive wars in world history.
“I urge you now to have the will and the courage to begin to realize
our dreams of peace, prosperity and coexistence.”
His Excellency King Abdullah II of Jordan
Views of the Middle East
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Potential for Development in the Middle East
“The younger population in the Middle East is a great potential asset
that has few prospects due to a lack of economic development.
The result is high unemployment and increasing despair.”
Youth Potential
Percentage of population under 14 years of age
47%
43% 42%
40%
37%
35%
W.Bank Saudi Iraq Syria Jordan Egypt Iran Lebanon Israel USA
Gaza Arabia
33%
28% 27%
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21%
You
Percen

th Potential in the Middle East
tage of population younger than 14
Unemployment
Percentage of the workforce unemployed
60%
30%
50%
W.Bank Saudi Iraq Syria Jordan Egypt Iran Lebanon Israel USA
Gaza Arabia
GDP per Capita
GDP per Capita (US$)
1,000
7,230
2,500
20%
25%
12%
14%
1,000 1,750 1,530 1,750
W.Bank Saudi Iraq Syria Jordan Egypt Iran Lebanon Israel USA
Gaza Arabia
Source: CIA, The World Fact Book 2000, www.cia.gov
18%
4,800
11%
16,500
INDUSTRIAL DEVELOPMENT FOR ECONOMIC INDEPENDENCE
4%
34,870
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In 1961, with an annual GNP per capita of less than $100, South Korea set upon a dedicated
program of industrialization with a strong focus on export markets. Their phenomenal
achievements were driven by financial necessity and a burning desire to defeat the Japanese
- this time in industrial world markets.
At the outset, industry learned and developed by “reverse engineering”, dismantling successful
foreign products and copying them. Today, South Korea has an annual GNP per capita of
$14,000 per year and is renowned for its automotive and ship building industries.
Singapore also began its drive for industrialization in the early 1960s. The country had a
limited domestic industrial base, lacked the institutional infrastructure for the promotion of
economic development and had a small, ethnically diverse population that lacked management
and technological skills. Despite a lack of local resources and of a suitable industrial and
entrepreneurial base, Singapore succeeded in its efforts to industrialize by investing in
education, professional training and other incentives to attract private foreign investment
from multi-national corporations. Now a modern industrialized nation specializing in high
value-added products, Singapore boasts an impressive annual GNP per capita of over
$26,000, with annual growth rates averaging 6.7 percent over the past 30 years (E.F. Vogel,
The Four Little Dragons, Harvard University Press, 1991).
Northern Ireland has also paid a high price for many decades of violent conflict. Some
25 years ago the region began a program of intensive investment in education and actively
sought investment from the U.S. and Europe. The industry developed has succeeded in
achieving significant levels of exports, while the region has worked to import back home
much of the talented youth that had left the country seeking opportunities elsewhere.
“Sooner or later the war over markets will replace the battlefield and
we must be prepared.”
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With Industry there is no Incentive for Violence
16,500
Potential success stories in
areas of unresolved confiict
4,800
2,540 1,750
1,000
600
Success stories in
unresdved conflict areas
24,000
10,000
Israel Lebanon Turkey Jordan W.Bank Gaza Strip Ireland S. Korea Singapore Finland
GDP per Capita (US$)
Source: The World Bank Group 2002 (Atlas method), www.worldbank.org
Success stories
to be copied
21,000
23,500
The signing of the Good Friday Agreement, assisted by US senator George Mitchell,
will help to ensure that the economy will continue to develop in an atmosphere of peace.
In Germany, industrial development has changed the course of national history and
transformed the society. The Marshall Plan helped Germany rebuild its industry after the
Second World War, thereafter West Germany's economic success drew East Germany to
remove the division between their economies. Indeed, Germany is now a key player in a
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United Europe, which not so long ago was deeply entrenched in hatred and conflict.
In our region, we must rely on business initiative and manufacture to prosper. Although
a source of considerable income, oil has left many of the countries in the region underdeveloped
and economically stagnant. Although the Arab Middle East accounts for 8 percent of the
world’s population, it contributes only 2 percent of global production. Israel’s per capita
gross product, for example, is twice that of Saudi Arabia. The paradox is that oil-rich countries
have become bastions of poverty and neglect and hothouses of illiteracy and ignorance -
the true forebears of hate and enmity.
There are countries in the Middle East, those closer to the Eastern Mediterranean, that
do not “benefit” from oil, and whose peoples aspire to development and education. These
countries are not stagnating. Their strength lies in their brainpower and in their working
capabilities. Just like Korea, Ireland and Singapore, these countries understand the economic
importance of maintaining peace. The West has no choice but to support the moderate
states in the region - Jordan, Egypt, Turkey and Israel - in the hope that the Palestinian
Authority and Lebanon will take the opportunity to join the cycle of endeavor and industry.
“Only people taught to aspire to economic independence are capable
of creating a healthy social fabric, a thriving industrial infrastructure
and a work ethic based on reason and responsibility.”
One hundred Industrial Parks throughout the Middle East, one for every million inhabitants,
could generate hundreds of thousands of jobs and redraw the current map of conflict as
a map of industrial development. The construction of a network of Industrial Parks has the
potential to change the atmosphere throughout the Middle East and usher in a new era for
T H E T E F E N M O D E L - A N E X P A N S I O N

Construction, Tefen
the Eastern Mediterranean, in which guns are abandoned in favor of production, development,
exports and progress.
The economic advancement of the entire region can help bring about the end of the
Arab-Israeli conflict and open a new communal page in the region’s history. There is no
time to spare.
“Industry is, in effect, the weapon of peace.”
INDUSTRIAL DEVELOPMENT FOR ECONOMIC INDEPENDENCE
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Company Focus – Stepac L.A. Ltd.
www.stepac.com
Israel Ben-Tzur had been living in Los Angeles,
California for a number of years with his family and
had established a company for the distribution and
sales of medical products, together with French
and American partners. When his young children
reached school age, in the early 1990s, he and his
wife Shosh decided to return to Israel with the
family. Ben-Tzur approached his partners with the
proposition of opening a manufacturing facility for
medical products in Israel and traveled to Israel to
evaluate the potential for investment.
“I visited Tefen and decided to establish the
factory in the Industrial Park due to the government
investment incentives offered in the region and the
attractive secure environment and package of
services provided by the Industrial Park,” explains
Ben-Tzur. “At this time, industrial zones in Israel
were very poorly developed and maintained and
CARERITE packaging, Israel Ben-Tzur
Tefen provided a different standard, one we had
grown to expect abroad.
“The proximity to the Kfar Vradim residential
community was also important to us. From the
outset, we decided that we wanted to build a
house in Kfar Vradim. After living in a pleasant
suburban area of Los Angeles we felt that we could
not live in Tel Aviv or any other Israeli city. The Tefen
Industrial Park and Kfar Vradim reminded us of the
quality of life we had enjoyed in California.”
In early 1993, Israel and Shosh Ben-Tzur
established Stepac L.A. Ltd. in the Tefen Industrial
Park with twelve employees and began with the
production of a single type of bag for sterile medical
packaging to be distributed by the company’s
partners in the US. When an employee incidentally
discovered that fresh vegetables stored in the
refrigerator in one of Stepac’s bags kept the
T H E T E F E N M O D E L - A N E X P A N S I O N

Xtend Integrated Post Harvest System
produce fresh much longer than expected,
Ben-Tzur sent the bags off for testing.
The result was the Xtend range of packaging
products, which provides the core technology for
a total quality assurance program for the harvesting
and delivery of fresh produce. Together with the
CARERITE product line of infection control barrier
films and sterilization bags for the medical
community, the Xtend Integrated Post Harvest
System was marketed successfully worldwide.
The company now has production facilities in
Tefen, Israel and Phoenix, Arizona; and has sales
and technical support offices in Brazil, Turkey,
Britain and Russia. The company has 90 employees
worldwide, 50 of which work in the Tefen Industrial
Park. Company sales have grown by 30 percent
over each of the last two years, reaching $10 million
in 2004. A further 50 percent growth in sales is
anticipated in 2005.
“The Tefen Industrial Park has provided a very
comfortable and convenient environment in which
we could grow. As we expanded, we easily recruited
a team of excellent employees and gradually
occupied an entire building, here in the Park. We
have never considered expanding the company
elsewhere in Israel,” admits Ben-Tsur, “We are very
happy here!”
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The Plan for Economic Development
Centers in the Eastern Mediterranean
Goals of the Plan
The Marshall Plan came into being as part of the effort to aid the reconstruction of postwar
Europe. Analysis of events in Europe following World War I determined that social disintegration,
unemployment and poverty paved the way for the rise of Nazism. One conclusion was that
the basis for many conflicts between nations and countries was economical and that the
road to peace required the development of industrial enterprise. In consequence, the original
Marshall Plan endeavored to reconstruct Europe’s economy through the establishment of
industry, as well as direct deliveries of equipment, fuel and technical assistance. The Plan
was implemented directly through industrial entrepreneurs and, while in cooperation with
governments, it did not work directly through their agencies.
The Plan for the Eastern Mediterranean seeks to repeat the success of the Marshall Plan,
in a no less complex and problematic situation: the Middle East at the start of the third
millennium, stricken by conflict and lagging far behind the industrial progress of the developed
and developing world. An axiom of the Marshall Plan proposes that when people enjoy an
appropriate standard of living, as a consequence of hard work and entrepreneurship, they
do not seek wars.
The aim of the Plan is to provide hope for a better future in the Middle East, and seeks
to lessen world terrorism through the fostering of political stability in the region, and, thus,
worldwide. Furthermore, the Plan will redress the financial inequalities within the Middle East
and between the non-oil Arab nations and the nations of the developed and developing
world. The Plan will seek to provide a dramatic increase in the number of jobs in the countries
targeted, raising the GDP of these nations and creating a higher quality of life. The development
achieved will afford greater accessibility to markets within the OECD nations and, in some
countries, will enhance the opportunities for open, democratic forms of government. The
Plan will attract foreign investments and encourage cross-border projects for infrastructure
development and mutual private initiatives.
T H E T E F E N M O D E L - A N E X P A N S I O N

The Program
Industrial Development of the “New Levant”
The proposed initiative calls for the funding of 100 Industrial Parks in the Eastern Mediterranean
region, based on the Tefen Model. The funding by donor nations would be channeled
through and administered by one or more of the Bretton Woods institutions (the World Bank,
the IMF and/or the WTO). The fund recipients would be Industrial Park projects, as opposed
to government agencies. The funding requirements are for a start-up period of a number
of years, after which it is expected that the industrial development created will generate its
own self-sustaining momentum.
Initially the plan would focus on Turkey, Jordan, the Palestinian Authority, and Israel. The
hope is that the program would be later expanded, as appropriate, in Lebanon and other
neighboring states that choose to pursue modernization and promote the industrialization
of the “New Levant”. As in the Marshall Plan, support would be designated for infrastructure,
industrial development and technical training.
The selection of Jordan, Turkey and the Palestinian Authority as the preliminary beneficiaries
acknowledges the high literacy rates in these countries and their orientation towards the
West. Lacking oil, they must exploit the creativity and productive potential of their populations
to improve their standards of living.
Construction in the Industrial Parks
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Export Industries - A Means of Economic Revival
in the Eastern Mediterranean
T H E T E F E N M O D E L - A N E X P A N S I O N

Turkey
Israel
The Gebze Industrial Park
Jordan
The Tefen Model
Industrial Parks
The Aqabah
Industrial Park
THE PLAN FOR ECONOMIC DEVELOPMENT CENTERS IN THE EASTERN MEDITERRANEAN
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“Regional stability and industry are woven inseparably together.”
The Hashemite Kingdom of Jordan is eager to transform itself into a modern nation. With
a population of just over 5 million, the results of the Plan should be apparent relatively quickly.
With appropriate funding, the GDP will increase and as the country flourishes, Jordan will
provide a model of development for the entire region.
A candidate for membership of the EEC, Turkey has already been recognized as having
considerable promise for development. For some time the US has been considering the
creation of a Qualified Industrial Zone (QIZ) in Gebze and in a number of other regions in
Turkey, which will benefit the international trade of both Turkey and Israel. Furthermore, the
country’s new Techno-Park Law provides for benefits to encourage the development of
advanced technology companies.
“Even more than before, I understand that this is the way to do it -
and there is no other way.”
Dr. Abdul Malin Al-Jaber, Managing Director, PIEDCO, The Palestinian Authority
Infrastructure construction in the Middle East
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“The cost of building an Industrial Park is less than half the cost of a fighter jet.”
For an investment of between US$
10-15 million, an Industrial Park can
provide a supportive framework for the
generation of thousands of jobs and a
platform for the development of export
markets.
In a region accustomed to spending huge
portions of national budgets on security,
this investment in sustainable economic
development is less than half the cost of
a fighter jet.
We can choose to invest in building a new
future, as opposed to pouring endless
resources into battles over the past.
The economic situation in the Palestinian Authority is dire. Prior to the second intifada,
well-established plans were formulated for the construction of twin Palestinian-Israeli Industrial
Parks at Rafah-Kerem Shalom. Following two years of cooperation and careful planning,
both partners approved the plans for the Parks. Ready now for implementation, such a
program for industrial development promises to be an important step in the creation of
much-needed jobs and economic opportunity in the Authority.
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Implementation of the Plan
While generating backing for the Eastern Mediterranean Plan, Stef Wertheimer has already
embarked on the first step of the Plan's implementation with local partners in Gebze, Turkey
and in Aqabah, Jordan.
“If we have to fight - better it should be over markets, over product
development… In that case our enemy lies in the Far East and not
the Middle East.”
In December 2001, Stef Wertheimer signed an agreement with Sabanci University and
the Gebze Organized Industrial Zone to create a “Technopark”, an Industrial Park based on
the Tefen Model. Construction is already underway, with the first stage of the project due
for completion in early 2005. Leading the drive for the Aqaba Park, Stef Wertheimer has
already established contact with multi-national companies interested in participating in the
project, among them Pratt & Whitney and Daimler Chrysler.
In July 2002, Stef Wertheimer presented the “The Plan for Economic Development Centers
in the Eastern Mediterranean” to the Foreign Relations Committee of the United States
Congress, winning the Committee’s appreciation and support. In regard to the Plan, former
Senate majority leader George Mitchell went on record: “People in the Middle East are able
to and do indeed work together. They are knowledgeable, skilled and energetic. They neither
need nor want handouts. They do want and need our assistance in order to ultimately
become independent and very successful.”
Today Senator Mitchell, who won international renown as a mediator of regional conflicts
after helping to hammer out the peace agreement in Northern Ireland, is a keen supporter
of the Plan on Capitol Hill. He is joined by former Defense Secretary William Cohen, and by
Robert Livingstone, former chairman of the Congressional Appropriations Committee.
The Industrial Park team is lobbying, with the help of friends and supporters from the US
T H E T E F E N M O D E L - A N E X P A N S I O N

Stef Wertheimer and Senator George Mitchell
and the Middle East, to have the Plan incorporated into the American budget.
Early in 2004 some 200 participants, among them national representatives and top industrial
figures from Jordan, Turkey, the Palestinian Authority, the U.S. and Israel, convened in Tefen
for a workshop on the regional implementation of the Tefen Model. Lending their support
and belief in the Model, the work continues to further the implementation of the Plan.
The war against terror declared by the United States together with the Plan for Economic
Development Centers in the region have the potential to redefine the Middle East; to connect
countries open to development with Europe via the Eastern Mediterranean. Cyprus, our
western neighbor, is already there. This could be the map of our future.
“Investment in educational, technological and industrial infrastructures
in Jordan and Turkey, and in the rest of the countries of the Eastern
Mediterranean, is the key to regional stability.”
THE PLAN FOR ECONOMIC DEVELOPMENT CENTERS IN THE EASTERN MEDITERRANEAN
104

In Conclusion
Opening a New Chapter
“Development and economic achievement are the surest
prescriptions for producing security and stability.”
Stef Wertheimer

107
A Vision for a New Reality
The industrial and regional development the Tefen Model has succeeded in generating, are the
product of the vision and world-view of Stef Wertheimer. Rooted in the indisputable significance
of industrial entrepreneurship and technological-industrial education, the Model offers a
comprehensive approach to self-sustainable development for economic independence. The
Model calls for the recognition that insular “security-minded” thinking must give way to an open
industrial perspective, focused on international markets and the goal of exports.
The Model’s success in attracting export-orientated industry, quality employment and young
professional families to the development centers generated by the Industrial Parks has led
to an examination of the potential of the Model to target a wider goal - the economic
development of the Eastern Mediterranean region.
Disparities in wealth and economic development in the Middle East threaten the security
and stability of the region and increasingly threaten the security of the populations of much
of the Western World. Alongside these threats is a crucial opportunity to facilitate the generation
of entrepreneurial initiative and industrial development in the Arab countries and encourage
the opening of Arab markets and societies to the rest of the world.
With the eyes of the Arab and Western world on Iraq and on the impasse between Israel
and the Palestinian Authority, the timely success of economic-political development in the
region would provide a much needed way forward for those who yearn for peace and prosperity.
Indeed, Turkey's future success as a candidate for membership of the EEC and as a competitive
producer of value-added goods for international markets could provide an invaluable route
for other Muslim nations to find their way to industrialization and international markets.
Many decision makers and influential figures from the Arab world and the West have taken
an active interest in the potential of the Tefen Model as a means of advancing the development
of the economies of the Eastern Mediterranean on their path towards integration with European
markets. The implementation of the Plan for Economic Development Centers in the Eastern
Mediterranean continues in the expansion of the Tefen Model in Israel, while the Model takes
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oot in Turkey and Jordan, and seeds have been sewn to develop similar initiatives on the
borders of the Palestinian Authority.
The Tefen Model provides a road map for regional industrial development that will pave the
way forward to a solution in our conflicted region of the world and lead us away from fighting
our neighbors. We seek to accelerate the progress of this path and to extend its range. A
crucial element for the implementation of the Model is the people whose actions and beliefs
will lead to the creation of manufacturing industry and gainful employment. It is these individuals
who will take their part in this shared endeavor which will lay the infrastructure for mutual
understanding in our region, and help us all achieve the goal of progress and peaceful
coexistence. The more people believe in this path and in the potential for success, the greater
will be our ability to turn this vision into a new, practical and optimistic reality.
Our aim is that governments of the developed nations will take measures to support industrial
development and exports in the region. We are seeking to persuade local governments and
organizations to focus on incentives to attract industrial investment and to promote education
suitable for export industries. We hope to persuade industrialists to invest in the region and
foreign companies to buy from local industry. The Industrial parks can provide a framework
to help local entrepreneurs develop towards economic independence, to generate jobs and
exports and to increase the income levels in the region.
This is the true mission of the Tefen Model.
Iscar Ltd., Tefen and the Tefen Industrial Park
A VISION FOR A NEW REALITY
108

109
Visitors Book
Worldwide Visitors
John Major, Prime Minister of Great Britain Dan Kirtzer, US Ambassador to Israel
Michael Gorbachov, President of the former
Soviet Union
Robin Cook, Foreign Secretary
of Great Britain
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Mohamad Basioni, Egyptian
Ambassador to Israel
King Hussein of Jordan
Ali Badacan, MInister of State of Turkey Suleman Demirel, President of Turkey
VISITORS BOOK
110

111
Martin Indyk, US Ambassador to Israel Helmut Kohl, German Chancellor
Jordanian Army Chief of Staff Delegation of Industrialists from South Korea
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National Visitors
Efraim Katzir, President of Israel Moshe Dayan, Chief of Staff of the Israeli
Army and Government Minister of Israel
Yitzhak Navon, President of Israel Yitzhak Shamir, Prime Minister of Israel
VISITORS BOOK
112

113
Menachem Begin, Prime Minister of Israel Shimon Peres, Nobel Peace Prize Laureate
and Government Minister of Israel
Ezer Weizman, President of Israel Benjamin Netanyahu, Prime Minister
of Israel
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Yitzhak Rabin, Prime Minister of Israel
and Nobel Peace Prize Laureate
Ariel Sharon, Prime Minister of Israel
Moshe Katzav, President of Israel Chaim Herzog, President of Israel
VISITORS BOOK
114

“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.”
Stef Wertheimer
All rights reserved.
© 2005 Tefen Enterprises Ltd., Tefen Industrial Park
ISBN 965-90441-8-6
www.industrial-parks.co.il