15 In this edition of IsraelDesks magazine, we turn the spotlight on one of Israel’s most vital and influential sectors: defense technology. Beyond the headlines of billion-dollar exports and record-breaking contracts, this sector reflects the ingenuity, urgency, and adaptability that have long defined Israeli innovation. From missile shields in Europe to autonomous submarines and space satellites, Israeli companies are not only helping other nations deal with global threats, but also reshaping the conversation around defense and technology. In late 2024, Israel’s Ministry of Defense quietly announced a number that startled even seasoned analysts: more than USD14.7 billion in defense exports, another record-breaking year and a 13% jump from 2023. Missiles, rockets, and air-defense systems accounted for the largest share, and Europe was the biggest buyer. Global demand for Israeli-made systems has surged as governments seek proven, high-tech solutions such as AI-driven drones, sensors, and command-and-control platforms. The figure matters not just for its size but for what it signals. As Justin Rubin - Senior Counsel in the Washington DC office of Pillsbury, points out: “Israel is a leader in developing cutting-edge defense technology. Its defense industry is powered by world-class STEM education and driven by necessity to address constant, and constantly evolving, threats.” Anna Moshe, partner and Chair of Israel Emerging Companies & VC Practice Group at Pearl Cohen, adds: “Israel’s defense technology ecosystem is characterized by very rapid feedback from real field events (combat, drills, security events), feeding directly into R&D, prototyping and deployment. This rapid cycle gives Israeli firms a competitive advantage in developing real-world tested systems rather than purely academic prototypes, and this creates high demand for Israeli technology worldwide.” From survival to export powerhouse For a country of almost ten million people and few natural resources, the path to becoming a globally recognized defense-technology leader has been long, challenging and remarkable. The country’s defense industry was Israel’s Defense-Tech Moment
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