The Optimal Structure of the Defense Industry in Israel: Significance and Implications

This study proposes an optimal future structure of the defense industry in Israel. The authors contend that Israel would stand to gain from a merger of its defense industry companies into one large, private corporation. A merger into one or two corporations is essential in order to guarantee the independence of Israel’s defense industry, whose future competition will be primarily in the global market. This measure should accompany development of weapon systems that capitalize on Israel’s technological advantage, and the possible acquisition of or merger with US or European defense companies.