Israel defense industry, what we can learn from it?

Israel has positioned itself in the world not only as a high-tech country, start-up nation, the country investing the most in research and development, or the most attractive place for investors but also as top armament exporter. According to Stockholm International Peace Research Institute in 2018 Israel takes 8th place in that regard and stands besides US, Russia, France, China, Germany, UK. This raises a question: how can a small nation succeed in such competitive field of industry? The aim of this study is to investigate Israel defense industry (IDI) context and developments in IDI from 1930s to 2018, as that could possibly indicate a way forward for countries that prefer to develop or enhance national defense industry. Research reveals the importance of IDI for Israel as it enables equipping own Armed Forces with advanced weapons, allows armament exports and facilitates developments in other sectors. Throughout the time Israel defense industry transformed as inner and outer circumstances forced that change. Israel Ministry of Defense acts as a main IDI facilitator in different fields. Well established links between Government, defense institutions, academia, investors and arms manufacturers contribute to arms quality, innovations and availability of export markets. US support remains a powerful instrument to boost IDI. Most authors claim that investment in education, Governmental efforts to encourage innovation and business expenditures on R&D, international cooperation within academia and industry, defense companies adaptability remains crucial factors for successful development of indigenous defense industries.