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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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Hamas Warns Against Cooperation with US Relief Efforts In Bid to Restore Grip on Gaza

Hamas terrorists carry grenade launchers at the funeral of Marwan Issa, a senior Hamas deputy military commander who was killed in an Israeli airstrike during the conflict between Israel and Hamas, in the central Gaza Strip, Feb. 7, 2025. Photo: REUTERS/Ramadan Abed

The Hamas-run Interior Ministry in Gaza has warned residents not to cooperate with the US- and Israeli-backed Gaza Humanitarian Foundation, as the terror group seeks to reassert its grip on the enclave amid mounting international pressure to accept a US-brokered ceasefire.

“It is strictly forbidden to deal with, work for, or provide any form of assistance or cover to the American organization (GHF) or its local or foreign agents,” the Interior Ministry said in a statement Thursday.

“Legal action will be taken against anyone proven to be involved in cooperation with this organization, including the imposition of the maximum penalties stipulated in the applicable national laws,” the statement warns.

The GHF released a statement in response to Hamas’ warnings, saying the organization has delivered millions of meals “safely and without interference.”

“This statement from the Hamas-controlled Interior Ministry confirms what we’ve known all along: Hamas is losing control,” the GHF said.

The GHF began distributing food packages in Gaza in late May, implementing a new aid delivery model aimed at preventing the diversion of supplies by Hamas, as Israel continues its defensive military campaign against the Palestinian terrorist group.

The initiative has drawn criticism from the UN and international organizations, some of which have claimed that Jerusalem is causing starvation in the war-torn enclave.

Israel has vehemently denied such accusations, noting that, until its recently imposed blockade, it had provided significant humanitarian aid in the enclave throughout the war.

Israeli officials have also said much of the aid that flows into Gaza is stolen by Hamas, which uses it for terrorist operations and sells the rest at high prices to Gazan civilians.

According to their reports, the organization has delivered over 56 million meals to Palestinians in just one month.

Hamas’s latest threat comes amid growing international pressure to accept a US-backed ceasefire plan proposed by President Donald Trump, which sets a 60-day timeline to finalize the details leading to a full resolution of the conflict.

In a post on Truth Social, Trump announced that Israel has agreed to the “necessary conditions” to finalize a 60-day ceasefire in Gaza, though Israel has not confirmed this claim.

Israeli Prime Minister Benjamin Netanyahu is expected to meet with Trump next week in Washington, DC — his third visit in less than six months — as they work to finalize the terms of the ceasefire agreement.

Even though Trump hasn’t provided details on the proposed truce, he said Washington would “work with all parties to end the war” during the 60-day period.

“I hope, for the good of the Middle East, that Hamas takes this Deal, because it will not get better — IT WILL ONLY GET WORSE,” he wrote in a social media post.

Since the start of the war, ceasefire talks between Jerusalem and Hamas have repeatedly failed to yield enduring results.

Israeli officials have previously said they will only agree to end the war if Hamas surrenders, disarms, and goes into exile — a demand the terror group has firmly rejected.

“I am telling you — there will be no Hamas,” Netanyahu said during a speech Wednesday.

For its part, Hamas has said it is willing to release the remaining 50 hostages — fewer than half of whom are believed to be alive — in exchange for a full Israeli withdrawal from Gaza and an end to the war.

While the terrorist group said it is “ready and serious” to reach a deal that would end the war, it has yet to accept this latest proposal.

In a statement, the group said it aims to reach an agreement that “guarantees an end to the aggression, the withdrawal [of Israeli forces], and urgent relief for our people in the Gaza Strip.”

According to media reports, the proposed 60-day ceasefire would include a partial Israeli withdrawal from Gaza, a surge in humanitarian aid, and the release of the remaining hostages held by Hamas, with US and mediator assurances on advancing talks to end the war — though it remains unclear how many hostages would be freed.

For Israel, the key to any deal is the release of most, if not all, hostages still held in Gaza, as well as the disarmament of Hamas, while the terror group is seeking assurances to end the war as it tries to reassert control over the war-torn enclave.

The post Hamas Warns Against Cooperation with US Relief Efforts In Bid to Restore Grip on Gaza first appeared on Algemeiner.com.

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UK Lawmakers Move to Designate Palestine Action as Terrorist Group Following RAF Vandalism Protest

Police block a street as pro-Palestinian demonstrators gather to protest British Home Secretary Yvette Cooper’s plans to proscribe the “Palestine Action” group in the coming weeks, in London, Britain, June 23, 2025. Photo: REUTERS/Jaimi Joy

British lawmakers voted Wednesday to designate Palestine Action as a terrorist organization, following the group’s recent vandalizing of two military aircraft at a Royal Air Force base in protest of the government’s support for Israel.

Last month, members of the UK-based anti-Israel group Palestine Action broke into RAF Brize Norton in Oxfordshire, a county west of London, and vandalized two Voyager aircraft used for military transport and refueling — the latest in a series of destructive acts carried out by the organization.

Palestine Action has regularly targeted British sites connected to Israeli defense firm Elbit Systems as well as other companies in Britain linked to Israel since the start of the conflict in Gaza in 2023.

Under British law, Home Secretary Yvette Cooper has the authority to ban an organization if it is believed to commit, promote, or otherwise be involved in acts of terrorism.

Passed overwhelmingly by a vote of 385 to 26 in the lower chamber — the House of Commons — the measure is now set to be reviewed by the upper chamber, the House of Lords, on Thursday.

If approved, the ban would take effect within days, making it a crime to belong to or support Palestine Action and placing the group on the same legal footing as Al Qaeda, Hamas, and the Islamic State under UK law.

Palestine Action, which claims that Britain is an “active participant” in the Gaza conflict due to its military support for Israel, condemned the ban as “an unhinged reaction” and announced plans to challenge it in court — similar to the legal challenges currently being mounted by Hamas.

Under the Terrorism Act 2000, belonging to a proscribed group is a criminal offense punishable by up to 14 years in prison or a fine, while wearing clothing or displaying items supporting such a group can lead to up to six months in prison and/or a fine of up to £5,000.

Palestine Action claimed responsibility for the recent attack, in which two of its activists sprayed red paint into the turbine engines of two Airbus Voyager aircraft and used crowbars to inflict additional damage.

According to the group, the red paint — also sprayed across the runway — was meant to symbolize “Palestinian bloodshed.” A Palestine Liberation Organization flag was also left at the scene.

On Thursday, local authorities arrested four members of the group, aged between 22 and 35, who were charged with conspiracy to enter a prohibited place knowingly for a purpose prejudicial to the safety or interests of the UK, as well as conspiracy to commit criminal damage.

Palestine Action said this latest attack was carried out as a protest against the planes’ role in supporting what the group called Israel’s “genocide” in Gaza.

At the time of the attack, Cooper condemned the group’s actions, stating that their behavior had grown increasingly aggressive and resulted in millions of pounds in damages.

“The disgraceful attack on Brize Norton … is the latest in a long history of unacceptable criminal damage committed by Palestine Action,” Cooper said in a written statement.

“The UK’s defense enterprise is vital to the nation’s national security and this government will not tolerate those that put that security at risk,” she continued.

The post UK Lawmakers Move to Designate Palestine Action as Terrorist Group Following RAF Vandalism Protest first appeared on Algemeiner.com.

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US-backed Gaza Relief NGO Vows ‘Legal Action’ Against AP Claim Group Fired on Palestinian Civilians

Palestinians collect aid supplies from the US-backed Gaza Humanitarian Foundation, in Rafah, in the southern Gaza Strip, June 9, 2025. Photo: REUTERS/Hatem Khaled

The Gaza Humanitarian Foundation (GHF), a US-backed nonprofit operating aid distribution centers in the Gaza Strip, is pushing back forcefully against an Associated Press report alleging that its contractors opened fire on Palestinian civilians.

The GHF is accusing the AP of withholding key evidence and relying on a “disgruntled former contractor” as a central source.

“In response, we are pursuing legal action,” the organization said in a statement released Wednesday.

GHF said it conducted an “immediate investigation” after being contacted by the AP, reviewing time-stamped video footage and sworn witness testimony. The group concluded that the allegations were “categorically false,” stating that no civilians were fired upon at any of their distribution sites and that the gunfire heard in the AP’s video came from Israeli forces operating outside the vicinity.

“What is most troubling is that the AP refused to share the full video with us prior to publication, despite the seriousness of the allegations,” the statement read. “If they believed their own reporting, they should have provided us with the footage so we could take immediate and appropriate action.”

The nonprofit’s public rebuttal raises sharp questions about the AP’s reporting process, suggesting the outlet declined to engage with the organization in good faith and instead leaned on a source GHF describes as having been terminated “for misconduct” weeks prior. The group also claimed the AP’s recent coverage of its activities had begun to “echo narratives advanced by the Hamas-controlled Gaza Ministry of Health.”

The AP has not yet responded publicly to the GHF’s accusations or provided clarification about its decision not to share the video footage before publication. The original report alleged that American contractors employed by GHF had fired weapons near or toward civilians.

The GHF statement confirmed that a contractor seen shouting in the AP’s video had been removed from operations, though the group insisted this was unrelated to any violence and did not constitute evidence of wrongdoing.

GHF, which describes its mission as delivering food to Gaza “safely, directly, and without interference,” said it remains committed to transparency but would not allow its operations to be “derailed by misinformation.”

The dispute highlights the fraught information environment in Gaza, where limited access and competing narratives frequently complicate the verification of on-the-ground events.

The post US-backed Gaza Relief NGO Vows ‘Legal Action’ Against AP Claim Group Fired on Palestinian Civilians first appeared on Algemeiner.com.

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