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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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US Senators Urge Secretary of Homeland Security to Secure Northern Border From Gaza Refugees
US Sen. Ted Cruz (R-TX) speaking at a press conference about the United States restricting weapons for Israel, at the US Capitol, Washington, DC. Photo: Michael Brochstein/Sipa USA via Reuters Connect
Six US senators sent a letter to US Secretary of Homeland Security Alejandro Mayorkas this week requesting that he increase security measures along the northern border in response to Canada accepting an influx of refugees from Gaza, the Palestinian enclave ruled by the terrorist group Hamas.
The six Republican lawmakers — Sens. Marco Rubio (FL), Ted Cruz (TX), Joni Ernst (IA), Tom Cotton (AK), Mike Braun (IN), and Josh Hawley (MO) — said they were “deeply concerned” that refugees from Gaza could sneak into the United States. The senators warned that allowing unvetted Palestinian refugees to cross the border poses a serious national security threat.
“On May 27, 2024, the Government of Canada announced its intent to increase the number of Gazans who will be allowed into their country under temporary special measures,” the senators wrote. “We are deeply concerned and request heightened scrutiny by the US Department of Homeland Security should any of them attempt to enter the United States at ports of entry as well as between ports of entry.”
After arriving in Canada, the Palestinian refugees will be given a “Refugee Travel Document,” which serves as a valid form of identification, the letter claimed, adding that US Citizenship and Immigration Services recognizes these documents as a valid substitute for a passport. The senators warned that “individuals with ties to terrorist groups” could potentially enter into the United States.
The letter argued that the US should maintain “common-sense terrorist screening and vetting” for any individual attempting to enter its borders from a foreign country. The lawmakers lamented that the Biden administration’s “”ax border enforcement” has rendered the country vulnerable to potential terrorist attacks. From April 1, 2023 to March 31, 2024, the US Customs and Border Protection’s Office of Field Operations intercepted over 233 suspected terrorists at the northern border, according to the letter.
“[T]he possibility of terrorists crossing the US-Canada border is deeply concerning given the deep penetration of Gazan society by Hamas,” the senators wrote. “It would be irresponsible for the US to not take necessary heightened precautions when foreigners attempt to enter the United States.”
On Oct. 7, Hamas launched the ongoing war in Gaza with its Oct. 7 invasion of and massacre of 1,200 people across southern Israel. The Palestinian terrorist group also kidnapped over 250 hostages.
In response, Israel launched defensive military operations in Gaza with the aim of freeing the hostages and permanently dislodging Hamas from the neighboring enclave.
The vast majority of Palestinians in Gaza, as well as the West Bank, still support Hamas’ Oct. 7 massacre across southern Israel that started the ongoing war, and they would prefer a “day after” scenario in which Hamas remains in control of Gaza rather than the Palestinian Authority, which governs in the West Bank, or other Arab countries, according to recent Palestinian polling. The same polling found that, when asked about support for Palestinian political parties and movements, a plurality chose Hamas.
US lawmakers are split along party lines as to whether the United States should accept refugees from Gaza. Republicans are largely opposed to importing refugees from Gaza, arguing that individuals from the war-torn enclave present “a national security risk” to the United States.” In May, Ernst and Sen. Mitch McConnell (R-KY) sent US President Joe Biden a letter, urging him not to accept any refugees from Gaza.
In June, however, a group of 70 Democratic lawmakers sent Mayorkas a letter, requesting he create “pathways” for more refugees of the Israel-Hamas war to resettle in America.
The post US Senators Urge Secretary of Homeland Security to Secure Northern Border From Gaza Refugees first appeared on Algemeiner.com.
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Video of Masked Man Vowing ‘Rivers of Blood’ at Paris Olympics Over Israel Support Appears to Be Fake, of Russia Origin
Screenshot of a widely circulated video published on social media showing a masked man vowing that “rivers of blood will flow” at the 2024 Paris Olympics due to France’s support for Israel. According to reports, the video appears to be fake and of Russian origin.
A widely circulated video published on social media this week showing a masked man vowing that “rivers of blood will flow” at the 2024 Paris Olympics due to France’s support for Israel appears to be fake and of Russian origin, according to reports.
The video — published on Tuesday on social media networks including X/Twitter and Telegram — featured a keffiyeh-clad man with his face covered, delivering an Arabic-language address threatening France with violence due to the country’s alleged support for Israel amid its ongoing war with Hamas in Gaza.
Addressing “the people of France” and “French President [Emmanuel] Macron,” the masked individual said, “You supported the Zionist regime in its criminal war against the people of Palestine. You provided Zionists with weapons; you helped murder our brothers and sisters, our children.”
“You invited the Zionists to the Olympic games. You will pay for what you have done!” continued the man, who wore a shirt adorned with a Palestinian flag. “Rivers of blood will flow through the streets of Paris. This day is approaching, God willing. Allah is the greatest.”
The video, published on X/Twitter by the account @endzionism24 and retweeted by Palestinian activist Ihab Hassan, ended with the speaker holding a prop severed head complete with fake blood up for the camera.
He is not a Palestinian:
A video clip has surfaced showing an individual wearing a keffiyeh and a Palestinian flag badge, threatening France with a “river of blood” at the Olympic Games.
It is glaringly obvious to any Arabic speaker that this person is not Arab; his dialect… pic.twitter.com/rwWGkkbiAi
— Ihab Hassan (@IhabHassane) July 23, 2024
Hassan and other social media users immediately noted that the man speaking was clearly not a native Arabic speaker, citing his reasonably fluent but awkward and occasionally incorrect pronunciation.
Many social media users aware of the mispronunciations seemed to blame Israel for the video, implying the clip was a false flag meant to fearmonger and demonize Palestinians and Muslims. They did not address the fact that Israel has access to hundreds of thousands of native Palestinian Arabic speakers who would sound far more convincing than the man in the video.
On Wednesday, French Interior Minister Gerald Darmanin said that “French secret services and their partners have not been able to authenticate the veracity of this video.”
According to researchers at Microsoft, however, the video appears to be part of a Russian-linked disinformation campaign meant to disrupt the Olympics, which began with the opening ceremony on Friday.
The researchers from Microsoft’s Threat Analysis Center told NBC News that the clip appears to have come from a Russian disinformation group known as Storm-1516, an outgrowth of Russia’s Internet Research Agency.
The latest clip was linked to a similar disinformation video falsely alleging that Ukraine had sent arms to Hamas — a claim for which there is no evidence. According to the researchers, the more recent video appears to be part of a Russian scare campaign meant to disrupt the Olympics.
The video came just days before France’s rail infrastructure was hit on Friday, ahead of the start of the Olympics, with widespread acts of vandalism including arson attacks, paralyzing travel to Paris from the rest of France and Europe just hours before the opening ceremony of the Olympics. French authorities described the acts as “criminal” and “malicious.”
Israeli Foreign Minister Israel Katz said that the sabotage of France’s high-speed rail network was directed by Iran, which Western intelligence agencies have for years labeled as the world’s foremost state sponsor of terrorism.
“The sabotage of railway infrastructure across France ahead of the Olympics was planned and executed under the influence of Iran’s axis of evil and radical Islam,” Katz wrote on X/Twitter. “As I warned my French counterpart [Stéphane Séjourné] this week, based on information held by Israel, Iranians are planning terrorist attacks against the Israeli delegation and all Olympic participants. Increased preventive measures must be taken to thwart their plot. The free world must stop Iran now — before it’s too late.”
Katz was referring to a letter he sent on Thursday to Séjourné raising alarm bells about what he described as a plan by Iran to attack Israel’s Olympic delegation.
Darmanin and French National Police both announced previously that they are taking increased security measures to ensure the safety of Israel’s Olympic delegation while they are in Paris amid mounting threats. These measures include providing them with round the clock security from French police. The Israeli delegation will also receive additional security details from Israel’s Shin Bet security agency during the Olympics.
The post Video of Masked Man Vowing ‘Rivers of Blood’ at Paris Olympics Over Israel Support Appears to Be Fake, of Russia Origin first appeared on Algemeiner.com.
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Top St. Louis Newspaper Endorses US Rep. Cori Bush’s Opponent, Argues Incumbent’s Israel Stance Is ‘Disqualifying’
US Rep. Cori Bush (D-MO) raises her fist as US Rep. Rashida Tlaib (D-MI) addresses a pro-Hamas demonstration in Washington, DC. Photo: Reuters/Allison Bailey
The editorial board of The St. Louis Post-Dispatch, the largest daily newspaper in Missouri, has endorsed the opponent of US Rep. Cori Bush (D-MO), pointing to the incumbent congresswoman’s lack of legislative accomplishments and stance on the Israel-Hamas war.
The Post-Dispatch argued that Bush’s position on Israel and the Gaza war should be “disqualifying” for any elected representative. The outlet took umbrage with Bush for equating a close democratic ally of the US with a genocidal terrorist organization.
“Israel’s conduct of the war has been far from perfect, but it remains a democracy fighting for survival against an evil terrorist organization. Bush’s tendency to equate both sides — and even to side with the terrorists, as when she cast one of just two House votes against a resolution to bar Hamas members from the US — should in itself be disqualifying for re-election,” the editorial board wrote.
Bush has established herself as one of the most vocal critics of Israel in the US Congress. Only nine days after Hamas’ Oct. 7 slaughter of roughly 1,200 people in southern Israel, Bush called for an “immediate ceasefire” between Israel and the Palestinian terrorist group. As the war dragged on, Bush’s rhetoric toward Israel sharpened, with the congresswoman accusing the Jewish state of committing “genocide” in Gaza and “apartheid” in the West Bank. Bush has also accused Israel of inflicting a “famine” in Gaza without providing evidence.
Bush seems more interested in pandering to the far-left fringes of the progressive movement than serving her constituents, the Post-Dispatch argued. Bush’s membership in “The Squad” — a clique of far-left progressive, anti-establishment lawmakers in the House of Representatives — has rendered her completely incapable of “accomplishing anything” in the halls of Congress, according to the newspaper.
The editorial board urged its readers to vote for Wesley Bell, pointing to his moderated approach to the Israeli-Palestinian conflict as an example of his pragmatism and moral clarity.
“On Israel, Bell offers an appropriately measured stance, acknowledging the need to protect Gazan civilians and work toward a two-state solution, while supporting America’s closest ally in the Middle East,” the outlet wrote.
In contrast to Bush, Bell has expressed more sympathy to Israel’s military operations in Gaza, emphatically rejecting the notion that Israel’s actions in Gaza constitute “genocide” or “ethnic cleansing.”
Moreover, Bell has strengthened his ties with the Jewish community over the course of his campaign. The American Israel Public Affairs Committee (AIPAC), the foremost pro-Israel lobbying group in the US, donated a reported $5 million to Bell’s campaign through its United Democracy Project super PAC. A group of 30 St. Louis-area rabbis penned a letter endorsing Bell, accusing Bush of a “lack of decency, disregard for history, and for intentionally fueling antisemitism and hatred.” Bell also brought about an official “director of Jewish outreach” to increase turnout among the Jewish community.
A poll commissioned by McLaughlin & Associates and sponsored by the CCA Action Fund, a pro-Bell super PAC, showed Bell with a commanding 56 percent to 33 percent lead over Bush.
Supporters of Israel see the primary race as a prime opportunity to oust another opponent of the Jewish state from the halls of Congress. Rep. Jamaal Bowman (D-NY), a progressive lawmaker, lost his primary race to a pro-Israel challenger on June 25. Over the course of his reelection campaign, Bowman accused Israel of committing “genocide” and enacting “apartheid” against Palestinians. Bowman’s comments incensed Jewish constituents in the leafy suburbs of Westchester County, New York.
Furthermore, observers are looking to the race as a potential indicator of the Democratic electorate’s position on Israel. Opinions of the Jewish state among Democrats have soured in the months following Oct. 7, calling into question whether anti-Israel views are still a liability with American liberals.
The post Top St. Louis Newspaper Endorses US Rep. Cori Bush’s Opponent, Argues Incumbent’s Israel Stance Is ‘Disqualifying’ first appeared on Algemeiner.com.
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