This past week, hundreds of missiles were launched from Iran toward Israel. Most were successfully intercepted by advanced Israeli defense systems.
This was not just an achievement of the Israeli Air Force – it was a victory for Israeli innovation. Innovation that doesn’t only happen in underground bunkers, but in research labs, start-ups, and technology incubators.
In the midst of a military campaign, the Israeli tech industry is once again being called upon to provide not just civil infrastructure but strategic advantage.
As hostile states surround us with military, economic, and technological threats, Israel’s most effective response continues to be innovation – on the battlefield and in cyber, intelligence, and entrepreneurship. These are arenas in which Israel still leads – but only if we choose progress over stagnation.
A symbolic yet troubling incident occurred last week in Paris. During the International Air Show, Israeli defense industry exhibits were covered in black cloth by organizers, under the pretext of “political neutrality.” The message was clear: even when our technology speaks for itself, Israel is met with barriers – both physical and diplomatic.
Our answer must not be protest alone, but action, investment, and renewal. Those impressed by Israel’s defense systems must understand: They are the result of a scientific, civic, and technological ecosystem that requires continuous support.
Behind every such advanced system are people. Many of them have been called to reserve duty for the fifth or sixth time, leaving their roles in tech development, management, or entrepreneurship, only to return to a civilian economy in distress. According to Israel’s Employment Service, based on recent applications, 41% of those returning from reserve duty over the past year have lost their jobs, and 60% report a sense of employment insecurity.
Meanwhile, the Israel Innovation Authority reports a steep decline in new start-up formation: from over 1,400 ventures annually to fewer than 600.
This gap between critical contributions to national security and the lack of civilian stability is untenable.
Yet from this difficulty, a new initiative is emerging. Earlier this month, venture capital giant Andreessen Horowitz (aka a16z), which manages over $45 billion, announced it would expand its presence in Israel, including a special track for elite IDF unit alumni.
Bridging the gap between IDF service and economic growth
At 18X Elite Impact, the venture I lead, we are working to bridge the gap between military service and economic growth.
Reservists – even those without formal tech backgrounds – receive personalized mentorship, practical tools, and access to a supportive entrepreneurial community. All of this is provided free of charge, through public and private funding.
Still, such efforts must not remain isolated. The state must adopt a clear, supportive policy. First, recognizing tech as critical national infrastructure requires prioritization during crises, adaptive regulatory support, and operational continuity. It also demands targeted resources for employment reintegration programs, incentives for companies that continue to employ reservists, and tailored job placement services – grounded in the understanding that these individuals serve on the front lines of both defense and innovation.
Second, systematic investment in human capital is essential. Fast-track tech training programs (bootcamps) can swiftly bring workers back into the labor market.
Government support should be conditioned on promoting core education and ensuring broad future employability. Here, too, returning reservists can serve as mentors and educators, sharing their real-world experience with the next generation of tech professionals.
Finally, growth policy must focus on removing barriers: stable regulation, renewed investment in the IIA, and tax incentives for companies that choose to stay and grow in Israel despite uncertainty. Additional targeted incentives should be provided for companies that actively integrate returning reservists into key projects or offer them fast-track advancement opportunities. This way, the state can both strengthen the industry and meaningfully reward those who defended it.
According to the Bank of Israel, the current war has already cost tens of billions of shekels. Growth is stagnating, foreign investment is declining, and the economic outlook is murky. Now, more than ever, we must remember: What will bring Israel back on track is not just emergency aid, but our capacity to think ahead, to innovate, and to build.
If the state embraces the tech sector as a true partner – not just a growth engine, but a pillar of national resilience – and if it invests in the people returning from the frontlines who can drive this innovation forward, we can do more than recover. We can emerge from this crisis stronger, more connected, and more confident in our future.
The writer is a tech entrepreneurship enabler, founder of 18X Elite Impact, www.18ximpact.org., and an IDF reservist.