While it may not be immediately obvious, Israel and California have been intrinsically linked to each other for years. Environmentally, their shared arid climate and overall landscape, often challenged with droughts, create a natural connection. And while it is clear that Israel's power in Hollywood and the entertainment business will continue to be strong, many argue that it is the areas of business and technology that provide the greatest promise for the growing connection between these two powerful states.

Excitement surrounding this sector was obvious at the recent Los Angeles "Israel Conference" held in early June 2009 when hundreds came together to explore the wealth of new opportunities.

Kelly Hartog reported for Israel21c.com that, "In addressing the attendees, Los Angeles Israeli Consul General Jacob Dayan noted that the downturn in the economy has actually benefited both Israel and the US, in light of the stimulus packages that are being doled out by the US government."

Hartog pointed out one recent example: "Together with Utah Governor John Huntsman, Dayan recently returned from a trip to Israel where, as a result of Utah's $1.5 million stimulus package, Huntsman is now working with Israeli solar company BrightSource on a deal similar to the one struck last month between BrightSource and Pacific Gas & Electric in California."

With the stimulus packages promoting action and a positive groundswell around Israel as a hotbed for California venture capital, I decided to sit down with Israeli-born Mouli Cohen, philanthropist [http://www.moulicohen.com/philanthropy.php] and entrepreneur, to discuss the current state of relations, emerging markets and his history and connection with both locations.

Cohen's story provides a unique perspective. Having grown up in Israel, attended school in Tel Aviv and served in the Special Forces in the Israeli Army, Cohen then went on to fund hi-tech companies globally, and has since set up base in California where he has just recently launched private equity innovation fund, Voltage Capital.

INTERVIEWER: Growing up in Israel, often considered a country at the forefront of biotechnology, why did you start your company in America rather then Israel?

MOULI: Well, I moved to the US in mid 80s. At that time the internet was just starting to emerge. I moved because of the huge opportunity in the United States. I found it challenging, but quickly realized that it was the place where I could realize my dreams.

INTERVIEWER: You live in California and grew up in Israel. Why is there such a close connection between these two states?

MOULI: Since California contains one of the leading cities in the United States, it is likely going to have a large and influential population of Jewish people. As the center of the entertainment business and hi-tech, there are many synergies between the two industries, not the least of which is the talent pool. Arguably
in its region, Israel has competitive intellectual capital, so its natural that two regions with such great talent will gravitate toward each other.

At the beginning of the 80s and my time there, the investor money was only beginning to move in. Israel has since developed itself aggressively and has established a trust in the market, the talent and the track record of the entrepreneurs there. As this has occurred, you have seen the similarities with The Valley emerge.

Defense is a great example. The best defense technologies are coming out of Israel right now and will continue to show big returns. The cockpit of every Phantom Fighter plane is equipped with Israeli software, so it provides a great example of the two countries collaborating together.

I think you'll only see greater growth amongst investments between the two regions.

INTERVIEWER: Do you think your experience in the Israeli Army played into your success?

MOULI: I think the Army helped. It molds you in a certain way when you go through so much training, practice and live war. It teaches you the fundamentals of how to do business: integrity, teamwork and competitiveness. It gives you the discipline you need to succeed in the business world.

INTERVIEWER: There is a Dan Rather report on YouTube that talks about Israel's hi-tech innovation during the global recession. He spoke to the leader of the Weitzman Institute of Science - its current President - a Belgium born physicist - about the importance of hi-tech research in Israel. His policy is that the research should be driven by what he refers to as "basic research" or curiosity driven research. Trying to understand how nature works. He uses the example of the discovery of the x-ray. Do you see the techniques of basic research being leveraged for your companies like Voltage that you build?

MOULI: Totally. Basic research is important and you want to approach practical paths, but research techniques have become so much more advanced that you want to leverage them as well to deliver greater results on shorter timelines.

INTERVIEWER: What do you think the current strife in the Middle East, specifically in Iran, means for the future of that region's technology sector? Do you think that has an effect on the investment from global venture capital in the region overall?

MOULI: The Middle East can be converted to be the most advanced center of science development in the world. I have no question that if we were to be able construct peace in this region between Arab states and Israel, then we would be one of the most prosperous regions in the world.

With the use of technology, especially micro-blogging and citizen journalism during this past election, Iran is a good example of how technology will help shape democracy in these regions. When you see the people objecting to the failures of the system and opposing dictatorships, you seen an opportunity to help these people realize their dreams through investments in these regions.

The challenge is, if we see a failure here and in other cases, it may become challenging to establish the infrastructure that will be needed for future advancement to spread.

INTERVIEWER: Malcom Gladwell said that great leaders in their fields have to spend 10,000 hours on a certain study or act before they are truly great at it. What have you spent 10,000 hours doing and what do you see yourself concentrating your time on in the future?

MOULI: I feel you need to have around 10 years of experience in your field to achieve expertise, which often leads to success. That being said, real success is irrelevant and it's not just in achieving wealth. I enjoy what I'm doing on a day-to-day basis, team myself with the best people and celebrate small and big wins over time.

INTERVIEWER: Having a history of picking winners throughout your career, what are the companies you see right now that are on the rise?

MOULI: I never like to single out companies, but I see the great innovation coming out of the green technology sector in Israel and that's where many of the smartest people are moving. The challenge is the amount of capital these new companies need to be acquired by companies like Exxon.