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Is Israel the ‘Start-Up Nation’ Because of Its Security Situation?
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.
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University of California Rejects Ethnic Studies Admissions Requirement in Faculty Assembly Vote

Demonstrators holding a “Stand Up for Internationals” rally on the campus of the University of California, Berkeley, in Berkeley, California, US, April 17, 2025. Photo: Carlos Barria via Reuters Connect.
The University of California (UC) Faculty Assembly has rejected a proposal to establish passing ethnic studies in high school as a requirement for admission to its 10 taxpayer-funded schools for undergraduates.
As previously reported by The Algemeiner, the campaign for the measure — defeated overwhelmingly 29-12 with 12 abstaining — was spearheaded by Christine Hong, chair of the Critical Race and Ethnic Studies department at UC Santa Cruz. Hong believes that Zionism is a “colonial racial project” and that Israel is a “settler colonial state.” Moreover, she holds that anti-Zionism is “part and parcel” of the ethnic studies discipline.
Ethnic studies activists like Hong throughout the University of California system coveted the admissions requirement because it would have facilitated their aligning ethnic studies curricula at the K-12 level with “liberated ethnic studies,” an extreme revolutionary project that was rejected by California Gov. Gavin Newsom in 2023. Had the proposal been successful, school officials of both public and private schools would have been forced to comply with their standard of what constitutes ethnic studies to qualify their students for admission to UC.
Being indoctrinated into anti-Zionism and “hating Jews” would essentially have become a prerequisite for becoming a UC student had the Faculty Assembly approved the measure, Tammi Rossman-Benjamin, executive director of antisemitism watchdog AMCHA Initiative, told The Algemeiner on Friday. AMCHA Initiative first raised the alarm about the proposal in 2023, calling it “a deeply frightening prospect.”
“Ethnic studies never intended to be like any other discipline or subject. It was always intended to be a political project for fomenting revolution according to the dictates of however the activists behind the subject defined it,” Rossman-Benjamin explained. “And anti-Zionism has been at the core of the field, and this became especially clear after Oct. 7. Most of the anti-Zionist mania on campuses that day — the support for the encampments, the Faculty for Justice in Palestine chapters — it was a project of Ethnic Studies. At UC Santa Cruz, 60 percent of Faculty for Justice in Palestine members were pulled from the ethnic studies department.”
Founded in the 1960s to provide an alternative curriculum for beneficiaries of racial preferences whose retention rates lagged behind traditional college students, ethnic studies is based on anti-capitalist, anti-liberal, and anti-Western ideologies found in the writings of, among others, Franz Fanon, Huey Newton, Simone de Beauvoir, and Karl Marx. Its principal ideological target in the 20th century was the remains of European imperialism in Africa and the Middle East, but overtime it identified new “systems of oppression,” most notably the emergent superpower that was the US after World War II and the nation that became its closest ally in the Middle East: Israel.
UC Santa Cruz’s Critical Race and Ethnic Studies (CRES) department is a case study in how the ideology leads inexorably to anti-Zionist antisemitism, AMCHA Initiative argued in a 2024 study.
Following Hamas’s Oct. 7, 2023, massacre across southern Israel, CRES issued a statement rationalizing the terrorist group’s atrocities as political resistance. Additionally, the department days later participated in a “Call for a Global General Strike,” refusing to work because Israel mounted a military response to Hamas’s atrocities — an action CRES called “Israel’s genocidal attack on Gaza.” Later, the department held an event titled, “The Genocide in Gaza in our [sic] Classrooms: A Teaching Palestine Workshop,” in which professors and teaching assistants were trained in how to persuade students that Zionism is a racist and genocidal endeavor.
Imposing such noxious views on all California students would have been catastrophic, Rossman-Benjamin told The Algemeiner.
“The goal of admissions requirements is to make sure that students are adequately prepared for college,” she noted. “Their goal was to use their power to force students to take the kind of Critical Ethnic Studies that is taught at the university, with the goal of revolutionizing society. The idea should have been dead on arrival, being rejected on the grounds that there is no evidence that it is a worthwhile subject that should be required for admission to the University of California.”
Follow Dion J. Pierre @DionJPierre.
The post University of California Rejects Ethnic Studies Admissions Requirement in Faculty Assembly Vote first appeared on Algemeiner.com.
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Israeli FM Praises Paraguay Decision to Label Iran’s IRGC, Proxies Hamas and Hezbollah as Terrorist Organizations

Paraguayan President Santiago Peña praying at the Western Wall in Jerusalem on Dec. 12, 2024. Photo: The Western Wall Heritage Foundation
Israeli Foreign Minister Gideon Sa’ar praised Paraguay’s decision to designate Iran’s Islamic Revolutionary Guard Corps (IRGC) as a terrorist organization, and to broaden the country’s previous designation to include all factions of Hamas and Hezbollah.
The top Israeli diplomat congratulated the South American country and described President Santiago Peña’s decision as a “landmark move” in addressing security challenges and fostering international peace.
“Iran is the world’s leading exporter of terrorism and extremism, and together with its terror proxies, it threatens regional stability and global peace,” Sa’ar wrote in a post on X. “More countries should follow suit and join the fight against Iranian aggression and terrorism.”
I commend Paraguay and @SantiPenap for the landmark decision to designate the Iranian Revolutionary Guard Corps, Hamas, and Hezbollah as terrorist organizations.
Iran is the world’s leading exporter of terrorism and extremism, and together with its terror proxies, it threatens… https://t.co/OzWACbWcno— Gideon Sa’ar | גדעון סער (@gidonsaar) April 24, 2025
On Thursday, Peña issued an executive order designating the IRGC as a terrorist organization “for its systematic violations of peace, human rights, and the security of the international community.”
The executive order also expanded Paraguay’s 2019 proscription of the armed wings of the Palestinian terrorist group Hamas, the al-Qassam Brigades, and Hezbollah, the Iran-backed terrorist group in Lebanon, to encompass the entirety of both organizations, including their political wings.
“With this decision, Paraguay reaffirms its unwavering commitment to peace, international security, and the unconditional respect for human rights, solidifying its position within the international community as a country firmly opposed to all forms of terrorism and strengthening its relations with allied nations in this fight,” Peña wrote in a post on X, emphasizing the country’s strategic relationship with the United States and Israel.
Iran is the chief international backer of Hamas and Hezbollah, providing the Islamist terror groups with weapons, funding, and training. According to media reports based on documents seized by the Israeli military in Gaza last year, Iran had been informed about Hamas’s plan to launch the Oct. 7 attack months in advance.
Last year, Peña reopened Paraguay’s embassy in Jerusalem, making it the sixth nation — after the US, Guatemala, Honduras, Kosovo, and Papua New Guinea — to establish its embassy in the Israeli capital. During the same visit, he condemned the Hamas-led massacre across southern Israel on Oct. 7, 2023, calling the perpetrators “criminals” in a speech at the Knesset, the Israeli parliament.
The Trump administration also praised Paraguay’s decision to officially label the IRGC as a terrorist organization, describing it as a major blow to Iran’s terror network in the Western Hemisphere.
“Iran remains the leading state sponsor of terrorism in the world and has financed and directed numerous terrorist attacks and activities globally, through its IRGC-Qods Force and proxies such as Hezbollah and Hamas,” US State Department spokesperson Tammy Bruce said in a statement.
The US official said Paraguay’s action will help disrupt Iran’s ability to finance terrorism and operate in Latin America — particularly in the Tri-Border Area, where Paraguay borders Argentina and Brazil, a region long regarded as a financial hub for Hezbollah-linked operatives.
“The important steps Paraguay has taken will help cut off the ability of the Iranian regime and its proxies to plot terrorist attacks and raise money for its malignant and destabilizing activity,” the statement read.
“The United States will continue to work with partners such as Paraguay to confront global security threats,” Bruce added. “We call on all countries to hold the Iranian regime accountable and prevent its operatives, recruiters, financiers, and proxies from operating in their territories.”
During his first administration, Trump designated the IRGC as a foreign terrorist organization (FTO), citing the Iranian regime’s use of the IRGC to “engage in terrorist activities since its inception 40 years ago.”
At the time, Trump said this designation “recognizes the reality that Iran is not only a state sponsor of terrorism, but that the IRGC actively participates in, finances, and promotes terrorism as a tool of statecraft.”
“The IRGC is the Iranian government’s primary means of directing and implementing its global terrorist campaign,” he continued.
The post Israeli FM Praises Paraguay Decision to Label Iran’s IRGC, Proxies Hamas and Hezbollah as Terrorist Organizations first appeared on Algemeiner.com.
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Yale’s Silence Is Allowing Blatant Campus Antisemitism — and Betraying the Promise of ‘Never Again’

Yale University students at the corner of Grove and College Streets in New Haven, Connecticut, U.S., April 22, 2024. Photo: Melanie Stengel via Reuters Connect.
As darkness fell over Yale University on Wednesday evening, Jewish students faced intimidation that echoed history’s darkest chapters. The following day, as the sun rose on Holocaust Remembrance Day, the world solemnly reflected on the devastating consequences of unchecked hatred.
Yet, disturbingly, at Yale, the shadows of that same hatred linger once again.
For several nights now, radical anti-Israel activists, primarily organized by “Yalies for Palestine,” an anti-Israel hate group, have targeted Jewish students at Yale — in many cases, based solely on their outwardly Jewish appearance.
On Wednesday, protestors blocked walkways, physically intimidated Jewish students, and hurled bottles and sprayed liquids at them — all while campus police stood by and did nothing.
One Jewish student described her chilling encounter with the protesters the night before, on Tuesday: “When I tried to get through, they blocked me, ignored my requests to pass, and handed out masks to those obstructing me. Yale security told me they couldn’t help.”
The immediate trigger for this harassment is the invitation extended by Shabtai, a Yale Jewish society, to Itamar Ben-Gvir, an Israeli government minister. Whether one supports or opposes Ben-Gvir’s politics is beside the point. Notably, Naftali Bennett, a former Israeli prime minister, was also protested and disrupted during a separate campus event in February, underscoring a broader trend of hostility toward Israeli speakers regardless of their political affiliation.
These events signal more than isolated protests; they constitute a redux of hatred that historically escalates when met with institutional silence or indifference.
Yale’s administration, under President Maurie McInnis and Dean Pericles Lewis, has failed to adequately respond. Though Yale revoked official recognition from Yalies for Palestine, its tepid actions have not halted the dangerous slide toward overt hostility. The silence — from both the university and the Slifka Center, Yale’s center for Jewish life — is deafening.
This isn’t the first troubling instance at Yale. A year ago, similar demonstrators disrupted campus life with vitriolic anti-Israel rhetoric, silencing dialogue and fostering an atmosphere hostile to Jewish students.
Earlier this year, CAMERA on Campus documented Yale’s Slifka Center pressuring students to erase evidence of anti-Jewish harassment during a pro-Israel event, effectively whitewashing antisemitism and emboldening extremists.
As CAMERA’s Ricki Hollander has powerfully documented, the rhetoric of anti-Zionism today often revives the antisemitic patterns of the past, particularly those propagated by the Nazi regime in the 1930s. These tactics, she explains, echo Nazi-era propaganda that portrayed Jews as subhuman, sinister, and uniquely malevolent — a narrative used to justify marginalization and, ultimately, genocide.
These dynamics — scapegoating, dehumanizing, and ostracizing Jews under the guise of “anti-Zionism” — are not relics of history. They are alive and active across elite American campuses. And now, unmistakably, they have taken root at Yale.
McInnis must break the silence and condemn the open harassment and assault of Jewish students. She must also hold the perpetrators of the heinous actions and those responsible for the safety of students accountable for their inaction.
This week has revealed a grave failure of moral and institutional duty on many fronts. When law enforcement stands by as Jewish students face intimidation and assault, it sends a chilling message: their safety matters less.
We must demand a full investigation and real accountability. Condemnations of antisemitism are not enough. Policies must be changed to ensure Jewish students and organizations can freely exercise their right to free expression without being subject to harassment and assault. Anything less would betray Yale’s stated values — and the promise of “never again.”
Douglas Sandoval is the Managing Director for CAMERA on Campus.
The post Yale’s Silence Is Allowing Blatant Campus Antisemitism — and Betraying the Promise of ‘Never Again’ first appeared on Algemeiner.com.
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