18 Lior Baruch, partner at Pearl Cohen adds: “The longstanding strategic alliance and relationship between Israel and United States has created deep-rooted industrial and technological links including joint R&D, funding resources, and supply chain integration. Other countries such as the Czech Republic lately established funds to invest and cooperate with the Israeli defense industry, and are very welcome by the Israeli regulators and the large defense companies. Furthermore, recent regional diplomatic shifts, notably the Abraham Accords, have opened new defense cooperation pathways with states in the Middle East. Israel is keen to globalize its engagement in defense technology markets, for commercial and other reasons to create a wider and stable client base as well as strengthening its reputation as the provider of the best solutions in the field. Joint production schemes and technology transfers are great tools to achieve that.” Sovereignty among the challenges: “Careful planning and commitment required” Nevertheless, while the innovation and demand is there, there are challenges for Israeli companies to address - from a legal, regulatory, financial, and sovereignty standpoint. Previously an appointee in the DoD, including as the Director of the Deputy Under Secretary of the Army’s Strategy and Integration Office, Pillsbury’s Justin Rubin adds: “Despite this leadership, Israeli companies - similar to those of other allies - face challenges in entering the U.S. market. Chief among these is the U.S. bias toward developing technologies at home and having full product lines and capabilities situated in the U.S. market. The U.S., like many countries, sees this as a question of sovereignty and security and does not want to feel reliant on other countries’ technologies, no matter how reliable an ally. Israeli innovators should not be discouraged by this; it is still possible to succeed in the U.S. market and navigating the challenge simply requires some careful planning and commitment.” Justin adds: “Generally speaking, the fundamental challenge all defense companies will face when selling internationally is “sovereignty” and countries’ preferences toward developing their own sovereign industries. Layered on top of this is trade and broader regulatory uncertainty. To embed themselves fully in international markets, Israeli companies will need to demonstrate a
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