The latest edition of Israel Desks Magazine featured an article examining Israel’s most vital and influential sector: defense technology. The industry’s continued growth—reflected in record export levels, expanding international partnerships and sustained global demand for advanced defense solutions—underscores both Israel’s technological excellence and the evolving global security landscape.

In an interview with Israel Desks, Government Law & Strategies senior counsel Justin Rubin noted that “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.”

As governments worldwide increase defense spending, Israeli companies are uniquely positioned to deliver proven, high-impact systems that address modern threats while shaping the future of defense technology.

“Israeli companies have long looked internationally for their market,” Rubin said, “developing technology in Israel and selling it internationally. The sophistication and efficiency with which Israeli companies are looking abroad, and toward the U.S. in particular, however, has increased.”

Nevertheless, despite strong innovation and demand, Israeli companies face significant challenges spanning legal, regulatory and sovereignty considerations.

“Despite this leadership, Israeli companies—similar to those of other allies—face challenges in entering the U.S. market,” Rubin said.

He noted that while the U.S. is biased toward developing technologies at home and maintaining full product lines and capabilities within the domestic market, “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,” he added.

Addressing funding and regulatory considerations, Government Law & Strategies special counsel Ya’ara Barnoon—who previously served as chief of staff and senior counsel in the U.S. Department of Defense Office of General Counsel—emphasized the importance of structured support.

“If [Israel’s Ministry of Finance and Ministry of Defense] can shore up support for innovative defense-tech companies via guaranteeing funds, that is an overall good thing,” she said.

However, Barnoon cautioned that “companies should be aware that any non-U.S. ownership stake and investment may eventually impact regulatory reviews in the U.S. and government stakes can prompt stricter reviews for companies seeking defense contracts.”

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