Israeli Cybersecurity Industry

The sector is commonly described as a connected ecosystem rather than a collection of firms operating independently. A 2017 analysis described a pipeline running from pre-military scientific and technological education to training in technology roles in the Israel Defense Forces and defense establishment, followed by movement of personnel into private cyber companies and security industries. Academic research was part of the same system; the article reported five university research institutes working on cyber at the time and characterized state investment, either directly or through government bodies, as supporting much of the ecosystem.[1]

A 2019 account by Yigal Unna, then director general of the Israel National Cyber Directorate, described the ecosystem as linking government, academia, and industry. He said the Directorate and Israel had established six academic research centers in partnership with universities and developed a model for investment in the Israeli cyber industry.[2] A 2020 account likewise reported six university research centers devoted to cybersecurity and undergraduate specializations in the field, and described Israel as the first country to offer a PhD in cybersecurity.[6]

Military technological units are one important source of personnel and startup founders, alongside education, government involvement, and commercial opportunity. A 2023 BESA Center paper said many Israeli intelligence and cybersecurity startups were predominantly staffed by graduates of technological military units, particularly Units 8200 and 81. It argued that their experience could help founders recognize defense needs and develop specialized solutions, while presenting this as an ecosystem pattern rather than a census of company founders.[7] The paper reported that more than 1,000 startups had been founded by Unit 8200 alumni and cited Check Point as an example. It also said that about 100 former Unit 81 officers and soldiers founded around 50 startups between 2003 and 2010, collectively raising more than $4 billion.[7]

A 2024 BESA study identified five factors behind Israel’s development as a cyber power: links among the IDF, commercial cyber companies, universities, and government; compulsory military service; the IDF’s role in training cyber specialists; cyber education; and national culture. Its executive summary claimed that Israel had as many cyber startups as the rest of the world combined, excluding the United States, despite having 0.001 of the global population. The summary did not provide the underlying counting method.[8] An account of Israel’s broader technology ecosystem similarly presents a “triple helix” of the defense establishment, academia, and entrepreneurship. It describes IDF units including 8200, Talpiot, and Unit 81 as training young Israelis in fields such as cryptography, systems architecture, machine learning, and algorithmic reasoning.[9]

The ecosystem includes research commercialization and training pathways beyond military service. A 2026 account describes the technology-transfer organizations Yissum, Ramot, and YEDA at the Hebrew University, Tel Aviv University, and the Weizmann Institute as helping move university research into commercial use.[9] The Israel Innovation Authority has awarded grants to the Jerusalem College of Technology to train up to 90 ultra-Orthodox men and women as cyber experts. The ARC online platform developed by Tel Aviv-based ITSafe offers AI-based cyber-profession training; its co-founder said online courses could lower barriers for people without experience in advanced military cyber units. The account reports that ARC trained thousands of people who earned international certifications, with graduates hired by firms including Check Point.[10]

Be’er Sheva is presented in the government’s international strategy as an integrated cyber cluster. The city’s Cyber-Park brings together the government’s CERT-IL, a university cyber research center, businesses ranging from multinationals to startups, and the military. The strategy says co-location supports the sharing of knowledge, manpower, and an innovation culture, and identifies inclusion, knowledge development, workforce development, and use of public assets as advantages of the model.[11]

Commercial cooperation also extends beyond Israel’s domestic network. The U.S.–Israel BIRD Cyber program supports joint cybersecurity research and commercialization through the BIRD Foundation, the U.S. Department of Homeland Security, Israel’s National Cyber Directorate, private firms, and academia. Areas of concentration include secure architectures for operational processes and risk-assessment solutions for airports.[5] BIRD Cyber was established in 2022 to promote collaboration on cybersecurity and emerging technologies. Projects may receive conditional grants of up to $1.5 million, capped at 50 percent of a joint research-and-development budget.[12]

The FY2022 National Defense Authorization Act required the U.S. Department of Homeland Security to establish a grant program for U.S.–Israeli cybersecurity research and commercialization, authorizing at least $6 million annually from fiscal years 2022 through 2026. A Congressional Research Service update in May 2025 said Congress had appropriated $12 million for BIRD Cyber by that point.[5] BIRD-backed projects outside the dedicated program have included collaborations on home cybersecurity for connected consumer electronics and protection for voice and text chat in gaming.[12]

Cyber Week provides another international meeting place. Tel Aviv University describes it as an annual international cybersecurity event hosted at the university, drawing more than 9,000 attendees from over 80 countries and featuring more than 50 roundtables, panels, workshops, forums, and other events.[13]

Part of the industry’s development can be traced to defense research and the movement of expertise and technologies into civilian businesses. Technologies created or used by defense industries were adopted by civilian electronics companies, while former defense-industry personnel founded startups. Encryption and data security, anti-virus technologies, Internet products, and advanced data communications were among the areas of significant Israeli development during the 1980s and early 1990s.[14]

A notable early company is Check Point. Gil Shwed’s profile says he served in an army intelligence unit responsible for electronic data gathering and credits Shwed and Check Point’s two co-founders with developing the “first firewall” in 1993. The same account says Check Point later became a global leader in firewall and virtual private network markets; the description of the 1993 product as the first firewall is the source’s characterization.[15] Check Point’s three founders also served in Unit 8200.[16]

Early growth indicators show how quickly the field expanded. An IVC report cited in 2016 counted 20 Israeli cybersecurity companies in 1996, just over 250 in 2006, and 430 in 2016. It reported that half of the cyber companies founded in Israel over the previous two decades were still operating.[16] Another account placed the number of private and public cybersecurity companies at about 400 in 2015, when the sector raised more than $300 million across 72 financing rounds.[17]

A 2016 report on the Beersheba CyberSpark industrial park described a cluster of Israeli firms, startups, venture-capital funds, and international companies including Lockheed Martin, Deutsche Telekom, Oracle, and IBM. It reported about 1,500 technicians, engineers, and researchers working at the site, many trained at Ben-Gurion University.[18] Beersheba has also been described as a hub for research and development in technology, cybersecurity, and aerospace and as the home of Ben-Gurion University of the Negev, established in 1965.[19]

Government cyber institutions developed alongside the industry. Government Resolution 3611 of August 7, 2011, preceded the establishment of the National Cyber Bureau on January 1, 2012. The National Cyber Directorate was established on February 15, 2015, following Government Resolution 2444; its responsibilities included developing cyber policy, building capacity, leading international relations, and managing civilian-sector cyber defense.[20] A 2020 account said the Bureau’s stated vision was to place Israel among the five leading countries in the field and reported that it helped boost the sector through increased government funding.[6]

The Cyber National Bureau and National Cyber Security Authority were subsequently unified as the National Cyber Directorate. A Knesset amendment passed on December 27, 2018, provided a statutory basis for the unification.[21] The government’s international cyber strategy presents the ecosystem as a close-knit community linking national-security agencies, civilian regulators, research institutes, businesses, and cybersecurity professionals. It says the system depends on sustained investment in people, knowledge, facilities, academic research, industrial innovation, and human-capital programs.[11]

In 2018, the Israel Innovation Authority, Ministry of Economy and Industry, and National Cyber Bureau earmarked NIS 90 million—about $24.4 million at the time—for a three-year plan to support the local cybersecurity industry. The plan provided grants of up to NIS 5 million for specific research-and-development projects and between NIS 1 million and NIS 2.5 million for pilots. The agencies also planned to invest in CyberSpark, a government-run nonprofit formed as a joint venture of Beersheba, the National Cyber Bureau, and Ben-Gurion University.[22]

The 2025 national strategy says its update followed the October 7 attack and the ensuing “Iron Swords” war, which it treats as a strategic turning point requiring reassessment of national-security concepts, including cyberspace. The National Cyber Directorate developed the strategy with security agencies, government ministries, economic-sector representatives, and experts from academia and industry. Building on the 2017 national strategy, it calls for a national implementation plan to be completed by 2028.[23]

The National Cyber Directorate coordinates civilian cybersecurity and national policy. It emerged from the merger of the National Cyber Bureau and National Cyber Security Authority and operates within the Prime Minister’s Office. Its responsibilities include protecting Israeli cyberspace, developing policy and capacity, managing civilian-sector cyber defense, supporting international relations, and advancing Israel’s global cyber leadership.[2][20]

The institutional development began before the unified Directorate. The National Cyber Bureau was established on January 1, 2012, following Government Resolution 3611 of August 7, 2011. The National Cyber Directorate was established on February 15, 2015, following Government Resolution 2444.[20] Professor Isaac Ben-Israel has said that a task force he led formulated national cyber policy in 2011 and founded the National Cyber Headquarters in the Prime Minister’s Office, and that the government decided in February 2015 to establish a new national cyber authority.[17]

A 2019 legal account recorded that the Directorate’s mission, functions, and authority had not yet been comprehensively regulated by law at that point and noted criticism of proposed oversight and privacy provisions. It also reported that the December 27, 2018, amendment provided a statutory basis for unifying the earlier bodies.[21]

National strategies frame the industry as both an economic asset and part of national defense. The 2025 strategy says cybersecurity investment reached 36 percent of total Israeli high-tech investment in 2024, compared with approximately 20–25 percent in previous years. It attributes the comparison to a National Cyber Directorate analysis of Startup Nation Central’s 2024 annual report.[23] The strategy treats the October 7 attack and ensuing war as reasons to reassess national-security concepts, including cyberspace, and directs preparation of a national implementation plan by 2028.[23]

The government’s international strategy describes a reciprocal relationship between operational institutions and the private sector: agencies gain trained workers and technology, while companies and researchers benefit from operational experience and practical skills. It presents sustained investment in academic research, industrial innovation, people, and facilities as necessary to maintain the ecosystem.[11]

Descriptions of defensive responsibilities have varied. A Jerusalem Center for Security and Foreign Affairs commentary says the IDF protects military assets, the Internal Security Service is responsible for critical infrastructure, and the National Cyber Staff guides private systems in defensive efforts. Because this is the source’s account, it should not be taken as a comprehensive current description of every agency’s legal remit.[24]

The industry operates alongside defense companies and a wider technology base, but cybersecurity’s specific contribution to those companies is not quantified in the available account. The Congressional Research Service names Israel Aerospace Industries, Rafael, and Elbit Systems among major Israeli defense firms and notes that Israeli companies export advanced technological products, including cybersecurity, radar, and electronic communications systems.[5] In 2000, the U.S. Treasury Secretary also described the military and associated companies as incubators for high-tech businesses by fostering technologies with commercial applications, a broad observation rather than a cybersecurity-sector measure.[25]

Published company counts show a large sector, but they should be read as estimates tied to specific years and reporting methods. A 2017 INSS article reported about 400 cyber companies active in Israel.[1] An INSS report published in May 2019 put the number of cybersecurity corporations at approximately 450, of which 60 had been founded in the preceding year. It reported about 12,000 Israelis working for cybersecurity firms and employment growth of more than 10 percent in recent years.[26] A 2020 account counted 436 active Israeli cybersecurity companies at the end of 2019, 387 of which operated in IT.[6]

A 2022 INSS analysis estimated 500 cyber companies with annual sales of $10 billion, describing Israel as a world leader in defensive and offensive cyber activity.[27] Later accounts also vary. Startup Nation Central-based reporting described more than 500 active cybersecurity companies in 2024, an increase of 86 percent over the preceding decade compared with 36 percent growth in the broader Israeli technology ecosystem.[4] A Cybertech Global and IVC report counted 546 active Israeli cybersecurity companies in 2024, compared with 522 in 2023; it said 28 percent employed ten or fewer people.[3]

The Cybertech and IVC account reported that 94 percent of firms operated in software, 300 were in early revenue stages, 115 were still in research and development, and 100 had reached the growth stage, defined as generating more than $10 million in annual revenue.[3] Another Startup Nation Central-based report estimated that around 60 percent of Israeli cyber companies were early-stage and 16 percent growth-stage, with the latter share more than twice that in other Israeli technology segments.[4]

Reports differ on workforce size, partly because they cover different years and company universes. The 2019 INSS estimate was about 12,000 employees.[26] A 2016 report said the sector employed 19,000 people, representing 7 percent of Israel’s high-tech workforce.[16] A 2025 CTech report put the cybersecurity workforce at more than 23,500 professionals across over 300 private firms. It also reported that seven of the world’s ten largest cybersecurity companies maintained research-and-development centers in Israel and that the country had six dedicated cybersecurity research centers.[28]

Investment measures likewise vary by source, year, and definition. A 2016 Globes report said 78 Israeli cyber companies raised $539 million in 2015, compared with 29 companies raising $65 million in 2012. It reported that the average first financing round rose from $2.3 million in 2012 to $6.9 million in 2015.[16] A 2017 INSS article said cyber research-and-development investment accounted for about 15 percent of the global total and quoted Prime Minister Benjamin Netanyahu giving a figure of about one-fifth of global cyber investment; the article did not reconcile the estimates.[1]

Other global-investment claims are also estimates. A Congressional Research Service report cites a 2022 estimate that nearly 40 percent of private global cybersecurity investment takes place in Israel, while presenting it as another report’s estimate rather than an independently calculated figure.[5] A 2023 commentary characterized Israel as attracting nearly 20 percent of global investment in the field but did not define the investment measure or period.[29]

Startup Nation Central-based reporting said cybersecurity firms made up about 7 percent of Israeli technology companies but attracted 38 percent of technology investment in 2024. It put private investment in the sector at $3.8 billion, nearly double the prior year.[4] A separate Startup Nation Finder account also reported $3.8 billion in cybersecurity startup funding in 2024, while describing that amount as 36 percent of total Israeli technology funding.[30] The different percentages describe different denominators and should not be conflated.

For 2024, Cybertech Global and IVC reported $3.79 billion in Israeli cyber-company fundraising, up 56 percent from $2.42 billion in 2023. Seed rounds increased to 58, while Series A and B deal counts fell by 21 and 36 percent respectively. Series C deals increased to seven, and Series D-and-later deals rose to 14.[3] The same report recorded $4.39 billion in exits in 2024, 37 percent below the $7.1 billion reported for 2023, even though exit transactions rose from 24 to 26.[3]

Other 2024 funding reports gave somewhat different totals. A Glilot Capital Partners report estimated about $4 billion raised across 75 transactions, compared with $1.85 billion across 59 transactions in 2023. It attributed nearly 40 percent of the 2024 total to Wiz and Cyera and put average seed rounds at $8 million and Series A rounds at $34.5 million.[31] A YL Ventures report gave $4 billion across 89 rounds in 2024, versus $1.89 billion across 71 rounds in 2023. It counted 50 seed rounds raising $400 million and 16 Series C-and-later rounds raising $2.9 billion.[32]

For 2025, two prominent reported funding totals diverge substantially. Cybertech Global and IVC data put fundraising at a record $8.27 billion, up from $3.96 billion in 2024. The same account estimated exit value at about $72.6 billion, including deals signed but not yet completed; it said the total was driven largely by the signed Wiz, CyberArk, and Armis deals and would have been around $2 billion without them.[33] A separate YL Ventures report put 2025 fundraising at $4.4 billion across 130 rounds and said American venture capitalists led 44 seed rounds, compared with 35 led by Israeli firms.[34] The sources do not explain why their totals differ.

The YL Ventures account also reported that seed, Series A, and Series B rounds each recorded their highest activity in ten years: 71 seed rounds averaged $9.6 million, 33 Series A rounds averaged $33.1 million, and 17 Series B rounds averaged $54.6 million. Nine growth-stage rounds raised $1.9 billion, averaging $234.9 million per round.[35]

Funding patterns reflect shifts in product areas. The YL Ventures report said AI security was the leading category for new seed-company formation in 2025, with 12 companies raising capital; risk automation followed with 11. Security Operations and Endpoint Security also showed growth.[35] The Cybertech and IVC account said nearly 93 percent of Israeli cybersecurity companies focused on software or enterprise-infrastructure solutions, while hardware and semiconductor ventures remained marginal.[33]

Investment is part of a broader national high-tech economy, but sector-specific and economy-wide measures must be distinguished. The U.S. Department of State describes Israel’s high-tech sector—not cybersecurity alone—as accounting for roughly 12 percent of the workforce, 20 percent of GDP, and 53 percent of exports.[36] In 2000, the U.S. Treasury Secretary described Israel’s military and associated companies as incubators for high-tech businesses by fostering technologies with commercial applications; that observation concerned broad high-tech development.[25]

Israeli cybersecurity businesses operate within a technology-export economy that emphasizes specialized products and services. The Congressional Research Service says Israeli companies commonly export advanced technological products, including cybersecurity products, radar, and electronic communications systems, rather than focusing primarily on large-scale hardware. It names Israel Aerospace Industries, Rafael, and Elbit Systems among major Israeli defense companies but does not quantify the cybersecurity share of their exports.[5]

Reported export values have risen across accounts, although the figures use different years and scopes. A 2016 Globes report said Israeli cybersecurity exports exceeded $6 billion in 2014, twice the 2013 total, and represented 8 percent of a global cybersecurity market valued at $71.7 billion.[16] A 2017 INSS article described Israeli cyber goods and services exported in 2015 as worth billions of dollars, equivalent to about 10 percent of the global cyber market, and placed Israel second worldwide in absolute cyber-industry terms after the United States.[1]

A Jerusalem Center for Security and Foreign Affairs page gave a different 2015 estimate: about 300 Israeli companies specializing in cybersecurity and $3.5 billion in “anti-hacking exports.” It did not provide a methodology or identify the companies, so the figures are best understood as a dated estimate.[24]

Israeli Export Institute data cited by The Times of Israel put overall cybersecurity exports at $11 billion in 2021. That report also counted 40 acquisitions of Israeli companies by local and foreign firms that year, with an estimated combined value of $3.5 billion, and noted that four Israeli cybersecurity firms went public.[37] A 2022 INSS analysis estimated annual sales of $10 billion for an industry of 500 cyber companies, a sales estimate rather than an export-only figure.[27]

A 2026 sponsored Jerusalem Post article reported Israeli cybersecurity exports of $17.5 billion in 2025 and described the country as the world’s second-largest exporter in the field. The article did not identify an underlying source for the figure, so it should be treated as a reported estimate rather than a fully documented market measure.[38] Funding and exit estimates reported for 2025 concern investment and transactions, not exports.[33][34]

The business landscape includes firms with substantial international visibility. A Jewish Virtual Library page updated in January 2025 identifies Check Point Software Technologies and CyberArk Software as Israeli cybersecurity companies. Its broader figures for Israeli companies listed on NASDAQ apply to Israeli listings generally, not specifically to cybersecurity firms.[39] A 2025 report described the founders and many employees of Wiz as Israeli while noting that the company is based in the United States. It reported that Google had agreed to acquire Wiz for $32 billion and described the agreement as the largest acquisition of an Israeli-founded company at that time; it reported an agreement, not confirmation of completion.[40]

Company growth also proceeds through acquisitions. A Glilot Capital report counted 20 cybersecurity mergers and acquisitions in 2024, valued together at $4.8 billion. It said Israeli cyber firms accounted for 25 percent of acquisitions and cited transactions involving Wiz, Silverfort, Check Point, and Cyera.[31] Startup Nation Central-based reporting described mergers and acquisitions as the main path to maturity for Israeli cyber startups, estimating that 11 percent had been acquired and 1 percent had reached an IPO.[4]

A 2019 INSS chapter, discussing an annual Cyber Security Ventures survey of 500 leading companies, counted 354 American and 42 Israeli companies, with the United Kingdom in third place. It said about 40 additional Israeli companies were located in Israel but registered in the United States for tax and trade considerations; adjusting for these firms, the chapter estimated about 80 Israeli and 310 American companies in the comparison.[2] A 2025 CTech report separately said seven of the world’s ten largest cybersecurity firms maintained research-and-development centers in Israel.[28]

Foreign capital and customers are also important to the broader Israeli startup ecosystem. A 2023 commentary said U.S. venture firms were the largest foreign source of funding for Israeli startups and that hundreds of Israeli companies had offices or headquarters in the United States. It argued that U.S. capital and customers were important to the ecosystem and that firms combining software and hardware could face more challenging fundraising needs.[29]

Universities and research institutes are central to the industry’s development model. A 2017 INSS account reported five university cyber research institutes and described academic research as one part of an ecosystem connecting education, defense-sector training, private firms, and state investment.[1] A 2019 chapter said the National Cyber Directorate and Israel had established six academic research centers in partnership with universities.[2] Other reporting has likewise described six dedicated cybersecurity research centers and undergraduate university specializations in the field.[6][28]

The Israeli government’s international cyber strategy describes the sector’s scientific and industrial base as depending on people, knowledge, and facilities. It says cyber agencies benefit from trained workers and technology, while the broader ecosystem benefits from operational experience and practical skills developed in those agencies. It calls for ongoing investment in academic research, industrial innovation, and human-capital programs.[11] The 2025 national strategy describes the established cybersecurity industry as part of the high-tech sector, based on experienced cyber professionals, academic excellence, and a technology ecosystem bringing together artificial intelligence and cybersecurity.[23]

Training is not limited to university research. Government and industry have supported programs aimed at broadening pathways into high-tech work, including grants for training ultra-Orthodox men and women as cyber experts and online professional courses that seek to reduce reliance on experience in advanced military units.[10] The source describing ITSafe’s ARC platform reports thousands of trainees earning international certifications and says graduates have been hired by companies including Check Point.[10]

Reports put employment at around 12,000 in 2019 and above 23,500 professionals in 2025.[26][28] A 2016 account estimated 19,000 employees.[16] The figures are drawn from different reports and dates and should be read as separate estimates rather than a uniform statistical series.

Government policy treats workforce development as part of cyber resilience. Israel’s national strategy describes cybersecurity as a shared responsibility: government has a leading and regulatory role, but security agencies, private companies, citizens, friendly countries, and multinational corporations also have roles. It says no single entity can bear the defense burden alone and calls for public-private cooperation in secure product development, information sharing, research and development, and protection of technological supply networks.[23]

The BIRD Cyber program funds joint research and commercialization with the aim of strengthening resilience in critical infrastructure and economies in both countries. Its documented areas include secure operational-process architecture and airport risk assessment.[5][12] Its grant structure, together with the longer-term U.S.–Israeli authorization for cybersecurity research and commercialization, makes cross-border cooperation one institutional route through which research can be translated into commercial products.[5][12]

Cybersecurity is a significant part of Israel’s high-tech economy, although the sector’s precise contribution to national output is not established by the available estimates. The U.S. Department of State identifies high technology overall as a primary growth engine, accounting for roughly 12 percent of the workforce, 20 percent of GDP, and 53 percent of exports. These numbers describe the entire high-tech sector and should not be attributed to cybersecurity alone.[36]

Sector-specific indicators include company formation, venture investment, exports, employment, and international research centers. Startup Nation Central-based reporting estimated that cyber firms were about 7 percent of Israeli technology companies yet attracted 38 percent of technology investment in 2024.[4] The 2025 national strategy said cybersecurity investment reached 36 percent of total Israeli high-tech investment in 2024, compared with a prior range of approximately 20–25 percent.[23] These estimates are based on different reports and presentations of the investment share.

The industry’s public profile is reinforced by international gatherings and its visibility in global markets. Cyber Week, hosted by Tel Aviv University, is described as drawing thousands of attendees from dozens of countries and bringing together government, research, and industry organizers.[13] Israeli firms also participate in international commercial partnerships through BIRD Cyber and other cross-border projects.[5][12]

Israeli firms have been particularly active in software and enterprise infrastructure. The Cybertech and IVC account of 2025 said nearly 93 percent of Israeli cybersecurity companies focused on software or enterprise-infrastructure solutions, with hardware and semiconductor ventures remaining marginal.[33] A separate account of the 2024 company base said 94 percent operated in software.[3]

The sector develops products across changing areas of demand. Reports identify AI-powered threat detection, cloud protection, secure enterprise browsers, and industrial-system safeguards among technologies developed by Israeli companies.[4] For 2025, a YL Ventures report identified AI security as the leading category for new seed-company formation, followed by risk automation, with Security Operations and Endpoint Security also showing growth.[35]

Commercial spyware has drawn scrutiny because cyber products developed by Israeli companies have reportedly been used for surveillance by foreign governments. The Congressional Research Service says Israel established its Defense Export Controls Agency in 2006. Following reports that NSO Group sold mobile-phone software to foreign governments that was used to spy on heads of state, dissidents, and human-rights activists, Israel changed its cybersecurity-software export licensing policy in December 2021.[5]

Under the revised policy, purchasers were required to pledge that Israeli equipment would not be used to commit “terrorist acts” or “serious crime,” as defined by the agency. The Congressional Research Service says oversight of cyber-technology exports was subsequently increased and the number of countries eligible to procure Israeli cyber technology was limited to 37. Its discussion centers on controls prompted by concerns about commercial spyware rather than regulation of the cybersecurity industry as a whole.[5]

A 2022 INSS analysis said disclosures about NSO offensive cyber products being used by regimes that violate human rights and against officials in friendly countries—including French President Emmanuel Macron—embarrassed Israel and prompted the Ministry of Defense to reevaluate its defense-export supervision policy.[27] A 2023 commentary identifies NSO as the creator of Pegasus spyware and says the software can remotely access mobile devices, including on a “zero-click” basis. It describes disputes over surveillance uses and Israeli police use of the tool, and reports that the government established a commission of inquiry into police use after revelations published in 2022; the author’s interpretation is commentary rather than an official finding.[41]

The debate also concerns dual-use technologies, which may serve civilian or military purposes. A 2018 account said Israeli firms continued to sell some dual-use products, including AI and cybersecurity technologies that could be used for intelligence and surveillance. It reported warnings that such technologies could be transferred onward to Iran and described a lack of mechanisms regulating dual-use exports to China at that time. Those statements concern attributed warnings and the policy situation described in 2018, not a current assessment.[42]

The industry’s relationship with military and intelligence service is another sensitive subject in accounts of its origins. Research and commentary describe advanced military units as sources of training, experience, and entrepreneurial networks, while also identifying academia, government support, investment, and market conditions as contributing factors.[7][8] These accounts describe an influential pattern, not a universal explanation of the industry or a census of founders.