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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.
The post Is Israel the ‘Start-Up Nation’ Because of Its Security Situation? first appeared on Algemeiner.com.
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Sen. Rick Scott Donates Salary to US Holocaust Memorial Museum
US Sen. Rick Scott (R-FL) on Capitol Hill in Washington, US, Dec. 7, 2022. Photo: REUTERS/Evelyn Hockstein
US Sen. Rick Scott (R-FL) announced on Wednesday that he will donate a portion of his Senate salary to the United States Holocaust Memorial Museum, underscoring what he called the urgent need to combat antisemitism at home and abroad as threats to Jewish communities escalate.
Scott, who has given part of his congressional salary since joining the Senate in 2019, said his gift was motivated by the growing dangers facing Jewish people and the importance of ensuring younger generations understand the Holocaust.
“Ann and I are proud to support the United States Holocaust Memorial Museum. Years ago, Ann and I brought our daughters to the Auschwitz memorial and museum in Poland because it was so important to us that they learned about the Holocaust and understood the horrors that occurred,” he said in a statement.
“It’s so important that every generation understands the atrocities of the Holocaust, and the museum does an incredible job teaching those lessons to millions of people every year. By sharing the stories of those who survived and those who were murdered, providing critical resources to educators, and reminding each of us what it means when we say ‘Never Again,’ it is a vital institution,” he added.
Scott also recounted taking his daughters years ago to Auschwitz in Poland, describing the visit as an effort to show them the catastrophic consequences of unchecked hatred against Jews.
The senator tied his donation to the approaching second anniversary of the Hamas-led Oct. 7, 2023, invasion of southern Israel, the deadliest single-day massacre of Jews since the Holocaust. Palestinian terrorists killed 1,200 people and kidnapped 251 hostages during the onslaught.
“As we approach the second anniversary of Oct. 7, Ann and I are proud to support the United States Holocaust Memorial Museum’s meaningful work defending the truth of the Holocaust and their important efforts to teach its relevance for today,” Scott said.
Scott’s office did not disclose the specific amount of the donation.
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Texas State University Silent on Status of Professor Who Incited Violent Attack on Jews at Public Library
West Asheville Library in North Carolina. Photo: Screenshot/buncombecounty.org.
Texas State University is refusing to disclose whether it still currently employs a far-left professor who was filmed inciting a riotous assault on three pro-Israel individuals who peacefully spectated an anti-Israel presentation that was held in June 2024 at the West Asheville Library in North Carolina.
As previously reported by The Algemeiner, two of the victims, David Moritz and Monica Buckley, are Jewish, and one is cancer patient Bob Campbell, an 80-year-old military veteran. Their assailants kicked, punched, and dragged them out of the event, titled “Strategic Lessons From the Palestinian Resistance,” after Texas State University assistant professor of philosophy Idris Atsu Robinson spotted them in the audience and invited the 60-80 anti-Israel partisans in attendance to decide their fates.
At one point during harrowing footage taken of the incident, Robinson suggested that the encounter could lead to “murder.” At no point did he deescalate the situation and even seemed to find humor in igniting the passions of a mob.
Responding to an Algemeiner inquiry on Thursday, a Texas State media relations official declined to comment on Robinson’s employment status, saying the university “does not discuss personnel matters.”
The university has been asked before to account for its handling of Robinson.
In June, the StandWithUs Saidoff Legal Department, a pro-Israel nonprofit that seeks to combat antisemitism, notified the school of Robinson’s conduct and rhetoric. According to StandWithUs, “university sources” confirmed that he will not be teaching during the fall semester of the 2025-2026 academic year. However, the university would not comment on the matter “due to the confidential nature of personnel matters,” making it unclear whether Robinson is still employed by Texas State and will teach there in the future.
StandWithUs says Texas State should state Robinson’s employment status, share findings amassed during an internal investigation of him, and produce any previous complaints which accused him of wrongdoing.
“It is critical that universities protect Jewish and Zionist students by refusing to provide a classroom platform to faculty members unlawfully promoting antisemitic hate and violence,” Michael Scheinman, Saidoff Legal Department assistant director of campus and community affairs, told The Algemeiner on Wednesday. “Schools that do not act and fail to implement strong safeguards risk exposing their students to the same hatred and violence suffered by the victims of this attack.”
He added, “StandWithUS Saidoff Legal continues to support the victims of this horrendous hate incident by coordinating with law enforcement, helping to identify masked perpetrators, and urging Texas State University to condemn the antisemitic conduct that contributed to this violence.”
By his own words, Robinson took immense pride in what transpired in Asheville, North Carolina last year. Commenting on the matter the next day while being interviewed on a podcast produced by the organizers of the event, he argued for “popular riots” and “divine violence,” saying explicitly that “terrorists” reserve the right to “take the life of the oppressor.”
“My arms are chewed up,” Campbell, a Navy veteran, told The Algemeiner during an interview which followed the assault. He added that medical staff at a local US Veterans Affairs facility identified “severe contusions” on his body.
“What really upset me — I was [lying] on the floor, and this big guy was on top of me,” Campbell recalled. “The librarian came to the door, looked me right in the eye, turned around and walked back and didn’t do a damn thing. Didn’t call the police.”
The activists proved equally merciless to the other victims, putting Moritz in a headlock and heaving Buckley outside and ordering her not to free herself from their grip.
Expressions of anti-Zionism are escalating to violence more frequently, as previously reported by The Algemeiner.
Earlier this month, Eden Deckerhoff — a female student at Florida State University (FSU) — allegedly assaulted a Jewish male classmate at the Leach Student Recreation Center after noticing his wearing apparel issued by the Israel Defense Forces (IDF).
“F—k Israel, Free Palestine. Put it [the video] on Barstool FSU. I really don’t give a f—k,” the woman said before shoving the man, according to video taken by the victim. “You’re an ignorant son of a b—h.” Deckerhoff has since been charged with misdemeanor battery.
According to the Tallahassee Democrat, Deckerhoff has denied assaulting the student when questioned by investigators, telling them, “No I did not shove him at all; I never put my hands on him.” However, law enforcement charged her with misdemeanor battery and described the incident in court documents as seen in viral footage of the incident, acknowledging that Deckerhoff “appears to touch [the man’s] left shoulder.” Despite her denial, the Democrat noted, she has offered to apologize.
In June, a gunman murdered two Israeli embassy staffers in Washington, DC, while they exited an event at the Capital Jewish Museum hosted by a major Jewish organization. The suspect charged for the double murder, 31-year-old Elias Rodriguez from Chicago, yelled “Free Palestine” while being arrested by police after the shooting, according to video of the incident. The FBI affidavit supporting the criminal charges against Rodriguez stated that he told law enforcement he “did it for Gaza.”
Less than two weeks later, a man firebombed a crowd of people who were participating in a demonstration to raise awareness of the Israeli hostages who remain imprisoned by Hamas in Gaza. A victim of the attack, Karen Diamond, 82, later died, having sustained severe, fatal injuries.
Another antisemitic incident motivated by anti-Zionism occurred in San Francisco, where an assailant identified by law enforcement as Juan Diaz-Rivas and others allegedly beat up a Jewish victim in the middle of the night. Diaz-Rivas and his friends approached the victim while shouting “F—k the Jews, Free Palestine,” according to local prosecutors.
“[O]ne of them punched the victim, who fell to the ground, hit his head and lost consciousness,” the San Francisco district attorney’s office said in a statement. “Allegedly, Mr. Diaz-Rivas and others in the group continued to punch and kick the victim while he was down. A worker at a nearby business heard the altercation and antisemitic language and attempted to intervene. While trying to help the victim, he was kicked and punched.”
According to the latest data released by the FBI, antisemitic hate crimes in the US have been tallying to break all previous statistical records. In 2024, even as hate crimes decreased overall, those perpetrated against Jews increased by 5.8 percent in 2024 to 1,938, the largest total recorded in over 30 years of the FBI’s counting them. Jewish American groups have noted that this surge, which included 178 assaults, is being experienced by a demographic group which constitutes just 2 percent of the US population.
A striking 69 percent of all religion-based hate crimes that were reported to the FBI in 2024 targeted Jews, with 2,041 out of 2,942 total such incidents being antisemitic in nature. Muslims were targeted the next highest amount as the victims of 256 offenses, or about 9 percent of the total.
Follow Dion J. Pierre @DionJPierre.
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Europeans Launch UN Sanctions Process Against Iran, Drawing Tehran’s Ire
Satellite image shows buildings at Isfahan Nuclear Technology Center, before Israel launched an attack on Iran targeting nuclear facilities, in Isfahan, Iran, May 17, 2025. Photo: Planet Labs PBC via REUTERS
Britain, France, and Germany on Thursday launched a 30-day process to reimpose UN sanctions on Iran over its disputed nuclear program, a step likely to stoke tensions two months after Israel and the United States bombed Iran.
A senior Iranian official quickly accused the three European powers of harming diplomacy and vowed that Tehran would not bow to pressure over the move by the E3 to launch the so-called “snapback mechanism.”
The three powers feared they would otherwise lose the prerogative in mid-October to restore sanctions on Tehran that were lifted under a 2015 nuclear accord with world powers.
French Foreign Minister Jean-Noel Barrot said the decision did not signal the end of diplomacy. His German counterpart Johann Wadephul urged Iran to now fully cooperate with the UN nuclear watchdog agency and commit to direct talks with the United States over the next month.
A senior Iranian official told Reuters the decision was “illegal and regrettable” but left the door open for engagement.
“The move is an action against diplomacy, not a chance for it. Diplomacy with Europe will continue,” the official said, adding: “Iran will not concede under pressure.”
The UN Security Council is due to meet behind closed doors on Friday at the request of the E3 to discuss the snapback move against the Islamic Republic, diplomats said.
Iran and the E3 have held several rounds of talks since Israel and the US bombed its nuclear installations in mid-June, aiming to agree to defer the snapback mechanism. But the E3 deemed that talks in Geneva on Tuesday did not yield sufficient signals of readiness for a new deal from Iran.
The E3 acted on Thursday over accusations that Iran has violated the 2015 deal that aimed to prevent it developing a nuclear weapons capability in return for a lifting of international sanctions. The E3, along with Russia, China, and the United States, were party to that accord.
US President Donald Trump pulled Washington out of that accord in 2018 during his first term, calling the deal one-sided in Iran‘s favor, and it unraveled in ensuing years as Iran abandoned limits set on its enrichment of uranium.
Trump’s second administration held fruitless indirect negotiations earlier this year with Tehran.
US Secretary of State Marco Rubio welcomed the E3 move and said Washington remained available for direct engagement with Iran “in furtherance of a peaceful, enduring resolution to the Iran nuclear issue.”
An Iranian source said Tehran would do so only “if Washington guarantees there will be no [military] strikes during the talks.”
The E3 said they hoped Iran would engage by the end of September to allay concerns about its nuclear agenda sufficiently for them to defer concrete action.
“The E3 are committed to using every diplomatic tool available to ensure Iran never develops a nuclear weapon,” including the snapback mechanism, they said in a letter sent to the UN Security Council and seen by Reuters.
“The E3’s commitment to a diplomatic solution nonetheless remains steadfast.”
Iran has previously warned of a “harsh response” if sanctions are reinstated, and the Iranian official said it was reviewing its options, including withdrawing from the nuclear Non-Proliferation Treaty.
The E3 had offered to extend the snapback for as much as six months to enable serious negotiations if Iran restored access for UN nuclear inspectors – who would also seek to account for Iran‘s large stock of enriched uranium whose status has been unknown since the June war – and engages in talks with the U.S.
Calling the E3 decision inevitable, Israeli Foreign Minister Gideon Saar said it was an “important step in the diplomatic campaign to counter the Iranian regime’s nuclear ambitions.”
GROWING FRUSTRATION IN IRAN
The UN process takes 30 days before sanctions that would hit Iran‘s financial, banking, hydrocarbons, and defense sectors are restored.
Russia and China, strategic partners of Iran, finalized a draft Security Council resolution on Thursday that would extend the 2015 nuclear deal for six months and urge all parties to immediately resume negotiations.
But they have not yet asked for a vote.
“The world is at crossroads,” Russia’s deputy UN Ambassador Dmitry Polyanskiy told reporters. “One option is peace, diplomacy, goodwill … Another option is a kind of diplomacy at the barrel of the gun.”
The specter of renewed sanctions is stirring frustration in Iran, where economic anxiety is rising and political divisions are deepening, three insiders close to the government said.
Iranian leaders are split over how to respond — with anti-Western hardliners urging defiance and confrontation, while moderates advocate diplomacy.
Iran has been enriching uranium to up to 60 percent fissile purity, a short step from the roughly 90 percent of bomb-grade, and had enough material enriched to that level, if refined further, for six nuclear weapons, before the airstrikes by Israel started on June 13, according to the IAEA, the UN nuclear watchdog.
Actually manufacturing a weapon would take more time, however, and the IAEA has said that while it cannot guarantee Tehran‘s nuclear program is entirely peaceful, it has no credible indication of a coordinated weapons project.
The West says the advancement of Iran‘s nuclear program goes beyond civilian needs, while Tehran says it wants nuclear energy only for peaceful purposes.