Israel’s defence industry: adaptation and growth in a changing arms market

Despite lacking substantial large-scale industrial sectors, it is noteworthy that Israel’s three leading arms industries have secured positions among the world’s top 100 arms-producing companies. Israel’s relatively large share of the world’s arms market is equally remarkable. In this article, I delve into two significant, yet largely overlooked, factors that have considerably contributed to this outcome in recent decades: the industry’s adaptability to the evolving dynamics of the local and global arms markets, and its increasing collaboration with the civilian sector. These two factors are interrelated, particularly as dual-use and even entirely civilian technologies have found application in weaponry and other military equipment since the 1990s. Together, they have enabled the realisation of Israel’s defence industry potential by maximizing the utilization of the country’s technological and financial forces, forging international collaborations, and directing the defence industry’s efforts toward areas where it possesses a comparative advantage.