The center will support Ford's automotive and mobile business by seeking startups and identifying innovative technologies in communications, sensors, automated systems research, vehicle monitoring and cybersecurity, the company explained.
Ford's announcement comes as tech and auto companies are looking to learn Israel's autonomous driving experience, which will spur investment in the country.
American chipmaker Intel Corp, Continental AG, German car supplier, Samsung Electronics Co, General Motors Co, Daimler AG have all acquired startups or set up their own development centers in Israel.
Ford said its new center will work in close coordination with the computer vision and training division of SAIPS, which the American car manufacturer acquired about three years ago.
SAIPS CEO Udi Danino has been appointed CTO of the new center in Israel.
Ford's global R&D network includes Aachen in Germany, Nanjing in China and Dearborn in the United States.
