Israeli Innovation: Thriving Against All Odds

The recent conflict, often referred to as the "Swords of Iron" war starkly highlighted the vulnerabilities of Israel's periphery. Hundreds of thousands of residents in the south and in the north of Israel were forced to evacuate their homes, leaving entire cities and towns deserted. Many businesses were abruptly shut down, and numerous entrepreneurs, in the middle of crucial research and development efforts, were compelled to seek alternative facilities to maintain the continuity of their work.

Despite these challenges, The Luzzatto Group, with existing branches in Omer, Tel Aviv, and Kiryat Shmona, strategically established a new branch in Ofakim, located near the Gaza border. This decision, particularly at this critical juncture, reflects a proactive approach. "The war and its upsetting impact on society and the economy have actually spurred us to intensify our efforts in the south and north," says Dr. Esther Luzzatto, patent attorney and CEO of The Luzzatto Group. "We firmly believe that Israel possesses the resilience to emerge stronger from this hardship. We must actively support promising Israeli entrepreneurs now more than ever. As Israel's geo-political and security landscape evolves towards a more stable environment, I am confident that the country will unleash its immense potential, propelling economic growth to new heights and attracting global investors drawn to its cutting-edge technologies".

Dr. Luzzatto, who also holds prominent public roles and serves as the head of the "Israel for the Negev" association, has been a forceful advocate for the economic and social advancement of Israel's periphery for many years. She played a crucial role in advocating for the relocation of the IDF's elite Communication and Intelligence units to the Negev, recognizing their potential to catalyze economic growth in the region. "Having been born, raised, and thrived in the Negev, and now raising my grandchildren here, I view bringing high-tech industries to the periphery as a fundamental public responsibility," she explains. "This has been a driving force in my work for many years."

The Essence of Pioneering and Zionism
Driven by its intellectual property expertise and its commitment to social impact, The Luzzatto Group fosters strong ties within the Negev and Galilee's thriving tech ecosystem. This includes collaborations with incubators, accelerators, research institutions, universities, and venture capital funds. To further solidify its presence in these regions, The Luzzatto Group established a branch in Kiryat Shmona three years ago, strategically located within Erel Margalit's "Margalit Startup City Galilee." Recently, the firm expanded its reach by opening another branch in Ofakim, joining forces with Sarona Partners to support the innovative AgriTech hub, SEED.

"Our guiding principle," emphasizes Dr. Luzzatto, "is to leverage our expertise, network, and experience to promote technological advancement across Israel. This commitment drives our strategic expansion beyond our headquarters in Omer and our Tel Aviv branch. We have established new offices in Ofakim and Kiryat Shmona, strategically positioned to contribute to the vibrant tech ecosystems in these regions.

"In the wake of the challenging events of October 7th, we assumed an additional national responsibility: supporting entrepreneurs from the Negev and Galilee. This includes assisting with projects conceived during the war, some of which address critical needs that emerged. Our overarching goal remains unchanged: transforming the periphery into a hub of technological innovation and high-quality employment, ensuring that the war does not hinder our progress. This represents a crucial next step in the Zionist endeavor, seamlessly integrating entrepreneurship with the pioneering spirit and regional revitalization—elements essential for Israel's continued prosperity.

"In my view, the entrepreneurs who persevered through the past year's adversity, and those who courageously founded new companies amidst the conflict, exemplify the true essence of pioneering and zionism."

Innovation Center in Ofakim
The Luzzatto Group's involvement in the new innovation center in Ofakim exemplifies its continued collaboration with Sarona Partners. This initiative directly addresses the ambitious vision set forth by the Mayor of Ofakim several years ago: to establish the city as a leading hub for AgriTech industries in Israel. The SEED center, a joint venture by Sarona Partners, the Ofakim Municipality, Or Movement, the Israel Innovation Authority and HamitbacH (Foodtech Hub), occupies approximately 2,400 square meters. It features shared workspaces specifically designed for high-tech companies, with a strong focus on AgriTech. Notably, the center boasts five acres of adjacent agricultural land dedicated to experimental purposes, allowing for the development of greenhouses, cultivation of crops, and field trials. This unique ecosystem will provide comprehensive support to startups across the nation, furthering innovation in AgriTech, FoodTech, water management, sustainability, and other critical sectors."

"The Ofakim center is a key component of our group's comprehensive support for Israeli startups", explains Eitan Pardo-Roques, Business Development Manager at Sarona Partners. "This support encompasses a venture capital fund, an acceleration program, and a network of innovation centers spanning the country, including Haifa, Tel Aviv, and Kfar Saba. Our objective is to cultivate Ofakim as a prominent AgriTech innovation hub by providing a nurturing environment for early-stage companies. Through our collaboration with The Luzzatto Group, we aim to empower all startups within the complex. This includes facilitating access to IP and corporate law expertise, organizing informative lectures, and offering valuable professional guidance in innovation."

"We provide Ofakim with a comprehensive support system and all the essential services that early-stage companies require, ensuring that the quality of support matches that available in the country's core innovation hubs. We will actively foster a vibrant community here, organizing events, meetups, and lectures. We will also implement an acceleration program and facilitate valuable connections within the ecosystem. Our goal is to replicate the dynamic environment of Tel Aviv within the Ofakim innovation center," he adds.

Pardo-Roques enthusiastically welcomes The Luzzatto Group to join him and other partners at the Ofakim Innovation Center. He emphasizes that Luzzatto truly embodies the spirit of pioneering. He further notes that the center is rapidly evolving into a collaborative hub, attracting companies, firms, and groups from both Israel and the international stage who recognize the immense potential of the western Negev, particularly Ofakim. Currently, 13 companies are operating within the center, with eight actively participating in the acceleration program".

Mayor Itzik Danino of Ofakim emphasizes that the city is experiencing an unprecedented period of growth and development, both physically and socially. "Ofakim has emerged as a thriving and vibrant community, boasting strong economic and cultural foundations, and is rapidly becoming a central hub in the western Negev," he says. "Recognizing the significant agricultural potential surrounding the city, coupled with numerous companies and research institutions, Ofakim has proactively created a regional ecosystem dedicated to AgriTech innovation for several years. The recently inaugurated innovation center is a hub for leading minds in AgriTech and advanced agriculture. Soon, we will unveil the Agro-site complex, providing researchers with state-of-the-art facilities for product development, cutting-edge AgriTech infrastructure, and an experimental agricultural farm.

"Furthermore, we have established the Shaked B industrial zone, exclusively dedicated to AgriTech manufacturing and designated as a national priority area for AgriTech development. The Ofakim Municipality remains committed to driving innovation and implementing exciting new programs".

Dr. Luzzatto emphasizes that pioneering innovation is a core value for The Luzzatto Group. "This shared commitment to innovation makes our partnership with Sarona Partners, alongside other esteemed collaborators and the Ofakim Municipality, a truly natural and synergistic endeavor," she says. "The establishment of this new center conveys a powerful message to Ofakim, the western Negev, and the entire southern region."

Agriculture Automation Spurred by Wartime Needs
CoverDolly, a company participating in the Ofakim acceleration program, is a prime example of innovation born from the war. CoverDolly is developing an automated machine for covering greenhouses with plastic sheets. The company's origins can be traced back to the events of October 7th, when Ora Peled Nakash, a resident of Kibbutz Ramat David in the north, visited her childhood friend, Ahi Sitbon, a farmer in Moshav Dekel in the south.

"After spending a few days working alongside Ahi in the fields, I inquired about the most pressing challenges he faced and how I could offer assistance. He immediately drew my attention to the greenhouse roofs, highlighting the significant difficulties encountered in covering them with plastic sheets due to a severe labor shortage," she recalls. "This arduous and inherently dangerous task has traditionally been performed by skilled contract workers or foreign laborers, primarily from Thailand. It's simply not a job that can be entrusted to volunteers. 'Completing this work before the onset of the rainy season is absolutely crucial', he emphasized. I naively inquired, 'Isn't there a machine that can automate this process?' To my surprise, he revealed that no such machine currently exists in Israel. This seemed quite incongruous to me, given my background in industrial design. I responded, 'Then let's develop one!'"

This sparked a daring, almost audacious entrepreneurial journey that continues to unfold today. Ora immediately contacted a third mutual friend, Gilad Meller, a talented mechanical engineer specializing in robotics and automation. She presented him with a challenge: rapidly developing a machine capable of automatically covering greenhouses with plastic sheets. Gilad, intrigued by the challenge, began brainstorming and ultimately joined the endeavor. Ora, undeterred, continued her efforts, securing initial seed funding of 200,000 shekels (approximately 50,000$) from the Innovation Authority through the Tnufa track. This program specifically prioritizes solutions that aim to reduce reliance on manual labor within the agricultural sector. The three friends subsequently founded CoverDolly, secured further investment from friends and family, and embarked on the crucial phase of developing a functional prototype to validate the feasibility of their innovative concept.

"We quickly realized that we had stumbled upon a solution to a significant and widespread challenge," explains Peled Nakash. "While our initial focus was on addressing a local problem, we soon discovered that this issue has a profound impact on the entire agricultural sector worldwide. Covering greenhouses with plastic sheets involves inherently dangerous work at heights, leading to a concerning number of workplace injuries, falls, and even fatalities. We believe that such tragic incidents are entirely preventable."

Securing Innovation: The Path to Patent Protection
While developing their innovative machine, CoverDolly managers recognized the need for patent protection. "Our product has a physical form that could be easily replicated, so safeguarding our intellectual property was crucial from the outset," explains Peled Nakash. "The Luzzatto Group provided invaluable guidance, starting with the development of a comprehensive patent strategy and its subsequent implementation. This included filing patent applications for two key inventions related to our system and managing these applications globally. Given the complexity of intellectual property matters, it's essential to have a trusted and reliable partner. We found in The Luzzatto Group a team we deeply value and trust. We feel a genuine sense of partnership with them, and they truly believe in our vision."

"This sentiment is entirely mutual," states Dr. Luzzatto. "CoverDolly provides a genuine solution to a critical problem. Born from the urgent needs of farmers facing wartime challenges, they have consciously chosen to operate from the country's south. Furthermore, any technological advancement that can minimize reliance on external labor will significantly enhance the profitability of Israeli agriculture, which is a cornerstone of our national existence. This was particularly evident following the events of October 7th. Such solutions are intrinsically linked to food security and environmental sustainability. Without a thriving agricultural sector, Zionism itself is unattainable."

Returning to Kiryat Shmona
The Luzzatto Group is currently completing another mission - returning to its northern branch in Kiryat Shmona. This follows over a year of remote operations and a temporary stay in Kibbutz Machanayim. The kibbutz served as an evacuation center for residents of Margalit Startup City Galilee, where Israel's international FoodTech center is located.

"Throughout this challenging period, we maintained consistent contact with our northern community, a testament to their remarkable resilience," states Adv. Tamar Luzzatto, Head of Business Development and Marketing at The Luzzatto Group. "Many of our clients and partners in the north persevered through immense challenges, both professionally and personally, some even while evacuating from their factories and homes. We are deeply hopeful that they can now return safely to their homes and that the Galilee can swiftly regain the tremendous momentum it possessed before the conflict.

"During our time in the region, we forged profound connections with the northern community and its entrepreneurs. We remain committed to supporting northern startups in all matters related to intellectual property and the protection of their innovative endeavors.

"Our presence in Kiryat Shmona, as well as in Ofakim, aligns with our core philosophy as a group that originated in the Negev: to support and foster entrepreneurship in geographically and socially peripheral regions. We have consistently strived to be at the forefront of innovation, and we are immensely proud of our nationwide reach, extending from the north to the south."

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