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Is Israel the ‘Start-Up Nation’ Because of Its Security Situation?

The Western Wall and Temple Mount in Jerusalem. Photo: Wikimedia Commons.

The State of Israel is unique — it enjoys significant economic growth while maintaining one of the highest defense burdens of any country in the world. The reason for the high defense expenditure is that Israel has been engaged in a fight for its very existence from the day of its formation. Concurrently with the ongoing threat, Israel’s economy has grown rapidly, averaging around 4% annual growth over the last two decades.

Israel’s growth strategy is directly tied to investments in research, development, and technology. Science and technology have always been perceived by Israel as key factors in the power equation between itself and its surrounding adversaries. Israel’s expenditure on research and development as a proportion of GDP is one of the highest in the world at approximately 5%. The country’s emphasis on science and technology is evident in the high density of scientists and engineers within its population, which easily competes with that of any developed European country.

In its early years, Israel attempted to address its pressing security challenges by developing a national security strategy that emphasized qualitative parameters to neutralize the quantitative gaps vis-à-vis the surrounding enemy states. Soon after the establishment of the state, David Ben-Gurion — Israel’s first prime minister and minister of defense — articulated that due to Israel’s numerical inferiority, it must strive for qualitative superiority. Israel identified science and technology as critical for the accomplishment of this strategy.

Ben-Gurion further asserted that scientific research and technological development were essential not only for security needs, but also for the development of Israel in terms of agriculture, industry, and education. His plan was to enlist the best scientific minds of the Jewish people and to motivate young scientific talents to dedicate their lives to scientific research. They were to be provided with advanced equipment and well-equipped laboratories in fields such as physics and biology, with the expectation that they would align their research efforts towards the security and development of the country.

Given that “big science” involves long development cycles, high uncertainty, substantial risk, and a considerable chance of failure, engaging in extensive private-commercial science and technology projects without state intervention was exceptionally challenging, if not impossible, in the initial decades of Israel’s existence. The necessity for government funding stands out as a primary obstacle for smaller nations seeking to cultivate such capabilities. However, despite the challenges it faced and its status as a small state, Israel managed to overcome these barriers, successfully constructing and advancing a significant technological infrastructure. Israel attributes much of this success to making technological superiority a cornerstone of its national security strategy, which led in turn to the establishment of a well-developed and technologically advanced defense sector.

The end of the 20th century saw a dramatic change in the world’s technological landscape. State-owned technological innovation led primarily by the defense sector shifted towards innovation led by the entrepreneurs and investors of the private sector, establishing what we know today as the start-up age. Today, annual investment in commercial startups worldwide is significantly higher than investment in defense R&D. The private commercial sector dominates technological innovation and the defense sector often “feeds” on these innovations for its own applications, rather than the other way around.

Following this shift in technological dominance and leveraging its highly developed science and technology infrastructure, Israel has managed to position itself as a global source of technological innovation and business entrepreneurship, and is often referred to accordingly as the “Start-Up Nation.” Israel has many hi-tech companies listed on the NASDAQ, the second-largest stock exchange in the world after the New York Stock Exchange. Israel’s presence on the NASDAQ is second only to that of the United States and China. As of the end of 2022, there were over 130 Israeli companies listed on the NASDAQ, which is comparable to those of the British, French, and German companies on the exchange combined.

In the last decade, Israel’s investment in research and development has been the highest in the world relative to GDP by a significant margin. Additionally, Israel’s venture capital fundraising rate is among the highest globally on a per capita basis, and the success rate of its unicorn companies is particularly high. Between 1999 and 2014, approximately 10,000 start-up companies were established in Israel, with 2.6% achieving an annual profit of at least $100 million. In the Global Competitiveness Report for 2018-19, which ranked 141 countries, Israel was first in entrepreneurial culture and second in availability of venture capital. In 2021, investments in Israeli startups reached an unprecedented peak of $26 billion.

Given this context, it might seem reasonable to argue that aligning Israel’s highly developed technological ecosystem with its unique security context may have been relevant in its early decades, but has grown less so with time. This might appear on the surface to be true, as Israel’s economy seems to have extricated itself over the last few decades from the clutch of the defense sector and transformed the country into the “Start-Up Nation” it is today.

But the argument is inaccurate, as the connection between the Israeli hi-tech industry and the Israeli defense sector remains robust. To appreciate why, we need to delve into the Israeli technological ecosystem.

The ties to the defense system, particularly to the IDF, play a pivotal role for the Israeli hi-tech industry. In Israel, most citizens undergo mandatory military service, and after their discharge, many continue on active reserve duty. There is thus a continual interaction between the Israeli civilian and military domains.

This ongoing connection significantly empowers entrepreneurs serving in the IDF’s technological units to introduce novel technologies and devise solutions that can benefit the defense system. These entrepreneurs possess an in-depth personal understanding of that system and can identify its needs, weaknesses, and vulnerabilities. They utilize the training and extensive knowledge they acquired during their military service in the development process to great effect.

In the Israeli hi-tech sector, many of the start-up companies specializing in intelligence and cybersecurity are predominantly staffed by graduates of military technological units like Units 8200 and 81. These start-ups are involved in advancing defense-related technological projects, delivering training to defense entities, and providing prompt responses to the system’s operational needs. In many cases, the products offered by these companies are not generic but are meticulously tailored to meet specific operational requirements. Many projects undertaken by these companies are at the forefront of technological advancement.

To comprehend just how profound is the influence of this phenomenon on the Israeli hi-tech industry, we should examine the two units mentioned above, 8200 and 81. In the late 1990s, the IDF recognized the pivotal role of the cyber domain and took on the challenge of identifying and training suitable human resources. The IDF accordingly instituted unique advanced selection processes to recruit high-quality personnel. The innovative training program and courses transformed these young recruits into true experts in their fields.

Between 2003 and 2010, 100 or so officers and soldiers who completed their service in Unit 81 established around 50 start-up companies, collectively raising over $4 billion. Many of these companies continue to yield substantial revenues, and some have achieved successful exits. Unit 8200 was a major contributor to the emergence of many cybersecurity companies, including the legendary Check Point; Adallom, acquired by Microsoft for $320 million; and Armis, acquired by Accenture for $1.1 billion.

More than 1,000 start-ups have been founded by 8200 alumni. Its graduates are involved not only in cybersecurity start-ups but in many other fields as well, ranging from Waze to Wix to SolarEdge. These examples represent only a small fraction of the broader trend. It is no exaggeration to assert that graduates of these units have significantly shaped the Israeli hi-tech sector over the past decade. These units are a true powerhouse propelling the Israeli hi-tech sector, with a significant portion of the technology they develop flowing back to defense applications.

When analyzing the unique relationship between the IDF and the private commercial hi-tech sector in Israel, we can see that Israel’s unique security situation has created a mechanism through which both parties are so interwoven as to make it difficult at times to tell them apart. It is in Israel’s best interest to continue to nurture this unique relationship, which is beneficial for Israel’s prosperity as well as its security.

Nir Reuven is a researcher at the BESA Center, an engineer, and a former officer in the Merkava development program (the main Israeli battle tank). He has held management positions in the Israeli hi-tech industry and is an expert on technology. Currently he is co-manager of the Sapir College Innovation and Entrepreneurship Center. He is working on his Ph.D. and lectures at Bar-Ilan University. A version of this article was originally published by The BESA Center.

The post Is Israel the ‘Start-Up Nation’ Because of Its Security Situation? first appeared on Algemeiner.com.

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‘The View’ Co-Host Sunny Hostin Compares Jan. 6 US Capitol Riot to the Holocaust

“The View” co-host Sunny Hostin. Photo: Screenshot

Sunny Hostin, co-host of the long-running ABC talk show “The View,” on Monday compared the Jan. 6, 2021, riot at the US Capitol to the Holocaust perpetrated by the Nazis during World War II, prompting widespread backlash for making the comparison.

While discussing the significance of the Jan. 6 anniversary, Hostin argued that Americans need to “find moral clarity,” asserting that they should “never forget” the breach of the US Capitol and claiming that the riot should be remembered as a keystone moment in world history, akin to chattel slavery and the Holocaust.

“You had [former US Secretary of State] Condoleezza Rice, I believe, on this very show, saying, ‘You know, we need to move on from Jan. 6.’ I say, no. You don’t move on, because Jan. 6 was an atrocity. It was one of the worst moments in American history,” Hostin said. “And, when you think about the worst moments in American history, like World War II, like the Holocaust, chattel slavery, we need to never forget, because [the] past becomes prologue if you forget and erase.”

On Jan. 6, 2021, a mob of rioters, convinced that the 2020 US presidential election was stolen from Donald Trump, stormed the US Capitol building in an attempt to disrupt the peaceful transfer of power. The mob swarmed through the halls of the Capitol building, vandalizing and breaking into private offices. Trump was widely criticized for not doing more to condemn those who breached the Capitol and for fueling the false notion that he lost the election due to widespread fraud.

Hostin’s words set off a firestorm of criticism on social media, with many observers taking offense to her comparison of Jan. 6 to the systematic murder of 6 million Jews during the Holocaust.

It is disgusting to compare Jan. 6 to the Holocaust,” wrote Samuel Stern, rabbi of Temple Beth Sholom in Topeka, Kansas.

“This Holocaust minimization by [Hostin] is so mind-blowingly offensive it’s hard to believe these fools still have a platform,” wrote Chaskel Bennett, a 9/11 first responder and grandchild of Holocaust survivors.

Look how stupid everything has become,” tweeted Omri Ceren, national security adviser to US Sen. Ted Cruz (R-TEX).

“What an insult to every Jewish person on the planet, past and present. Breathtaking minimizing of one of the worst things to happen in human history,” wrote conservative CNN analyst Scott Jennings.

The post ‘The View’ Co-Host Sunny Hostin Compares Jan. 6 US Capitol Riot to the Holocaust first appeared on Algemeiner.com.

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Houthi Leader Warns Israelis: ‘Those Who Want to Sleep’ Comfortably Should Leave Country

Houthi policemen ride on the back of a patrol pick-up truck during the funeral of Houthi terrorists killed by recent US-led strikes, in Sanaa, Yemen, Feb. 10, 2024. Photo: REUTERS/Khaled Abdullah

A senior leader of the Iran-backed Houthi terrorist group in Yemen has warned Israelis that they should flee to Cyprus or “return to their original country” if they want to sleep comfortably at night.

“Those who want to sleep should go to sleep in Cyprus or return to their original country,” Hazam al-Assad, a member of the Houthis’ political bureau, posted on X/Twitter on Sunday in a Hebrew-language message directed at Israelis.

The post came one day after al-Assad vowed that the Houthis will continue to attack Israel in support of the Palestinians in Gaza.

“We won’t stop … You must watch the sky, you must not sleep, you must not enjoy life as long as the children of Gaza die from bombs, hunger and cold. We will not abandon Gaza,” he posted.

On Monday, al-Assad celebrated after the Houthis claimed they arrested spies trained and equipped by British and Saudi intelligence services, arguing it was a victory in the Yemeni rebel group’s “holy jihad” and the alleged spies were supporting Israel.

“With the support of God Almighty, the Yemeni security services achieve a new victory in the battle of the holy jihad and the promised victory and in the path of support and victory for our people in Gaza, arresting the British spy cell affiliated with MI6 and Saudi Arabia supporting the Israeli enemy entity,” he wrote.

The Algemeiner could not immediately confirm the veracity of the Houthis’ claim about busting a foreign spy operation.

The Houthis have ramped up their military action against Israel in recent weeks, repeatedly firing missiles from Yemen at Israel. While Israel has intercepted many of the missiles, some have penetrated Israeli air defenses.

Last month, a ballistic missile launched by the Iran-backed group struck a playground in Tel Aviv, injuring at least 16 people and causing damage to nearby homes — the second attack in as many days — after several interception attempts by Israel’s air defense systems failed.

The strike came shortly after the Houthis launched another missile toward the center of Israel, and this time the projectile was only partially intercepted. The warhead crashed into a school in the city of Ramat Gan, outside Tel Aviv, causing one building to collapse and severe damage to another. Children were due to arrive at the school hours after the missile hit.

In response to the attack, the Israeli Air Force conducted retaliatory strikes targeting Houthi positions in Yemen, including strategic locations such as the port of Hodeidah and the capital city, Sana’a. US forces also conducted multiple airstrikes against Houthi positions with the aim of degrading the Houthis’ offensive capabilities and ensuring the security of vital maritime routes in the Red Sea and Gulf of Aden.

Israeli Prime Minister Benjamin Netanyahu warned at the time that Israel would take forceful action against the Houthis as it had done with Hezbollah, another Iran-backed terrorist organization, in Lebanon.

“Just as we acted forcefully against the terrorist arms of Iran’s axis of evil, so we will act against the Houthis,” he said. “We will act with strength, determination and sophistication. I tell you that even if it takes time, the result will be the same.”

Days later, on Dec. 26, the Israeli Air Force conducted additional strikes on the western coast of and deep inside Yemen, including at Sana’a International Airport in the Houthi-controlled capital.

“These military targets were used by the Houthi terrorist regime to smuggle Iranian weapons into the region and for the entry of senior Iranian officials. This is a further example of the Houthis’ exploitation of civilian infrastructure for military purposes,” the Israeli military said.

Netanyahu again vowed “to cut off this terrorist arm of Iran’s axis of evil” and to “persist in this until we complete the task.”

Amid the constant attacks, Israel has instructed its diplomatic missions in Europe to push for countries to designate the Houthi as a terrorist organization.

“The Houthis pose a threat not only to Israel but to the region and the entire world,” Israeli Foreign Minister Gideon Sa’ar said in a statement. “The direct threat to freedom of navigation in one of the busiest maritime routes globally is a challenge to the international community and the world order. The most basic and fundamental step is to designate them as a terrorist organization.”

Several countries — including the United States, Saudi Arabia, Malaysia, the United Arab Emirates, Australia, Canada, New Zealand, and Israel — currently designate the Houthis as terrorists.

Sa’ar’s directive followed repeated attacks by the Houthis against Israel since October 2023, including the launch of over 200 missiles and 170 attack drones.

The Houthis have been waging an insurgency in Yemen for two decades in a bid to overthrow the Yemeni government. They have controlled a significant portion of the country’s land in the north and along the Red Sea since 2014, when they captured it in the midst of a civil war.

The Yemeni terrorist group began disrupting global trade in a major way with their attacks on shipping in the busy Red Sea corridor after the Iran-backed Palestinian terrorist group Hamas’s massacre across southern Israel last Oct. 7, arguing their aggression was a show of support for Palestinians in Gaza.

The Houthi rebels — whose slogan is “death to America, death to Israel, curse the Jews, and victory to Islam” — have said they will target all ships heading to Israeli ports, even if they do not pass through the Red Sea.

Since Hamas’s Oct. 7 onslaught, which launched the ongoing war in Gaza, Houthi terrorists in Yemen have also routinely launched missiles toward Israel.

The US Defense Intelligence Agency (DIA) released a report in July revealing how Iran has been “smuggling weapons and weapons components to the Houthis.” The report noted that the Houthis used Iranian-supplied ballistic and cruise missiles to conduct over 100 land attacks on Israel, Saudi Arabia, the United Arab Emirates, and within Yemen, as well as dozens of attacks on merchant shipping.

While the Houthis have increasingly targeted Israeli soil in recent months, they have primarily attacked ships in the Red Sea, a key trade route, raising the cost of shipping and insurance. Shipping firms have been forced in many cases to re-route to longer and more expensive journeys around southern Africa to avoid passing near Yemen, having a major global economic impact.

In September, the Houthis’ so-called “defense minister,” Mohamed al-Atifi, said that the Yemeni rebels were prepared for a “long war” against Israel and its allies.

“The Yemeni Army holds the key to victory, and is prepared for a long war of attrition against the usurping Zionist regime, its sponsors, and allies,” he was quoted as saying by Iranian state-owned media

“Our struggle against the Nazi Zionist entity is deeply rooted in our beliefs. We are well aware of the fact that this campaign is a sacred and religious duty that requires tremendous sacrifices,” added Atifi, who has been sanctioned by the US government.

Beyond Israeli targets, the Houthis have threatened and in some cases actually attacked US and British ships, leading the two Western allies to launch retaliatory strikes multiple times against Houthi targets in Yemen.

The post Houthi Leader Warns Israelis: ‘Those Who Want to Sleep’ Comfortably Should Leave Country first appeared on Algemeiner.com.

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‘I Grew Up Hating Israel, Jews’: Former Antisemite-Turned-Zionist Takes on World’s Oldest Hatred in New Doc

Norwegian student Marie Andersen carries an antisemitic sign at an Oct. 21, 2023, pro-Hamas demonstration in Warsaw, Poland. Photo: Screenshot

In a world grappling with a resurgence of antisemitism, a new documentary seeks to confront the issue head-on, positing an unsettling take on the motivations behind the world’s oldest hatred through the insights of Rawan Osman, a Syrian-Lebanese antisemite-turned-Zionist.

“Tragic Awakening: A New Look at the Oldest Hatred,” directed by Canadian-Israeli filmmaker Raphael Shore, interweaves historical analysis with contemporary events through the voices of clerics, historians, sociologists, and cultural commentators, including the late British Chief Rabbi Rabbi Jonathan Sacks, author Yossi Klein Halevi, Israel’s antisemitism envoy Michal Cotler-Wunsh, and journalists Bari Weiss and Douglas Murray. It argues that antisemitism stems not from a perception of Jewish inferiority, but rather from resentment of Jewish excellence and moral leadership.

Osman — who founded “Arabs Ask,” a forum designed to challenge preconceived notions about Judaism and Israel among Arabs, and who describes herself as an Arab Zionist — narrates the movie.

Born in Damascus, Syria, she was raised in Lebanon’s Beqaa Valley and later lived in Saudi Arabia and Qatar before eventually settling in Germany. Her first encounter with a Jewish person was when she moved to Strasbourg, France in her twenties. In her words, the encounter prompted her “first and last panic attack.”

But a long process of exploration, including studying Modern Hebrew and Jewish history at a German university, led her to challenge the antisemitic beliefs she had absorbed growing up in the Middle East and ultimately change her perspective.

“Life is strange. I grew up hating Israel and the Jews, just like many Lebanese and Syrians,” Osman told The Algemeiner.

“Living in Europe, especially the decade I spent in Germany, made me one of the most vocal supporters of the Jewish state. Who would have thought?”

After reexamining her beliefs, Osman dedicated herself to soft diplomacy, educating the Arab world about Jewish history and the Holocaust. However, following the Palestinian terrorist group Hamas’s invasion of southern Israel last Oct. 7, she adopted a more direct and assertive approach, despite the personal risks tied to openly supporting Israel. Reflecting on a conversation with her son, she recalled him asking, “Why are you doing this to me?” to which she responded, “I am doing this for you.”

Osman, who has expressed a desire to convert to Judaism and move to Jerusalem, teamed up with Shore and Rabbi Shalom Schwartz, the film’s executive producer and founder of Aseret, an organization dedicated to promoting the universal values of the Ten Commandments.

“I found myself on a quest to try and understand antisemitism. The Jews are blamed for all ills of the world. Why? Antisemitism requires a different type of explanation,” Osman says in the film.

Shore, who released the film alongside his new book Who’s Afraid of the Big Bad Jew?, argued that while religious, social, and political reasons may trigger antisemitism, they fail to explain its deeper motives, leaving efforts to combat it ineffective.

“Today, more than ever before since the Nazis were defeated, we are forced to discover ways of finding greater tolerance in our world. We are completely delusional if we think that hatred of the Jews will end with the Jews. We are always the canary in the coal mine — a harbinger of what is to come for the entire civilized world,” Shore told The Algemeiner.

“If we are ever to effectively combat antisemitism, we need to better understand its roots with moral and spiritual courage, which demands unwavering pride in our common Jewish identities,” he continued. “Combating antisemitism requires pushing back at our enemies with clarity, unity, and an appreciation that our traditions and history are what have allowed us to overcome our enemies.”

Osman says at one point in the movie: “Hitler didn’t want to kill the Jews because they were bad; he wanted to kill them because they were good.”

Shore explains that for Hitler, the Jews represented “a spiritual and moral threat” because the ethical foundations of Western civilization — at their core, Jewish ideas — are the antithesis of his Darwinian outlook.

“Hitler believed that there was one great conflict that drives human history, and that was the idea of survival of the fittest,” Shore said. “Hitler believed that if the ideas of humanitarianism, love, equality, democracy were to succeed, that would be the end of humanity.”

After a screening of the movie in Tel Aviv last week, Osman shared her thoughts on the downfall of Iran’s regional axis of proxies, culminating with the recent fall of former Syrian President Bashar al-Assad.

Osman said that the reaction of some Israelis’ apprehension at Assad’s demise “literally broke my heart,” she said.

“I invited my Israeli friends to reach out to the Syrians and congratulate them” on the fall of Assad, who was the “monster of the century,” she said.

“Some of them misunderstood — they thought I’m endorsing Islamists,” she said, referencing the rebels led by a former member of ISIS and al Qaeda, Ahmed al-Sharaa, formerly known as Abu Mohammad al-Julani.

Still, she noted, these groups achieved what the world, including the US and Israel, could not, emphasizing that the removal of Assad had to come from within Syria, as an external force taking him down would have turned him into a martyr.

Though Osman approached the recent changes with caution regarding their impact on Israel’s relations with its neighbors, she remained hopeful. “While I watch myself together with Rav Shalom Shwartz and Rav Shore on the big screen, I feel that peace between Israel, Lebanon, and Syria might come in my lifetime after all,” she told The Algemeiner.

The post ‘I Grew Up Hating Israel, Jews’: Former Antisemite-Turned-Zionist Takes on World’s Oldest Hatred in New Doc first appeared on Algemeiner.com.

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