Noiranjana Kashyap is a Ph.D. Research Scholar and Dr. TMA Pai Fellow at the Department of Geopolitics and International Relations, Manipal Academy of Higher Education, Manipal
Technology has emerged as the most effective tool of statecraft in the 21st century, enabling nations to achieve their geopolitical goals through innovative partnerships and the strategic use of soft power. Located strategically at the crossroads of Europe, Asia, Africa, and the Eastern Mediterranean, Israel is a powerhouse of high technological prowess. It has rightly earned the nicknames ‘Startup Nation’ and ‘Silicon Wadi’ due to the presence of over 9,178 high-tech companies (2023), out of which 6,000 are active startups as of 2024. The technology sector in Israel has not only spurred the country’s economic growth but is also a strong pillar of its foreign policy. This article argues that Israel’s tech diplomacy has been an institutional response to its hostile geopolitical environment. It demonstrates an entrepreneurial effort by the country to reshape its global influence through innovation, albeit with ethical dilemmas and regional sensitivities. By examining the intersection of technology and diplomacy, the article highlights how Israel employs technology to forge coalitions, counter its isolation in West Asia, and exert soft power internationally.
Building a Tech Ecosystem from Adversity
Israel’s technology sector is a noteworthy example of the transformative power of technology that not only tackles the existential challenges of a nation but also contributes significantly towards its global competitiveness in technology. A noteworthy characteristic of Israel’s tech sector is its ability to turn any obstacles or barriers into opportunities for growth. For instance, the country lacks natural resources due to its geographical location and is surrounded by hostile neighbours threatening its existence since the country’s establishment in 1948. However, the Jewish scholarly traditions that encourage innovative thinking due to years of fighting for survival and learning from failures led Israel to grow vegetation in the desert, thereby ‘making the desert bloom.’ The quest for survival and the need to create deterrence against its enemies pushed Israel to develop high-tech weapons to defend its existence, with the Iron Dome being a prime example of such a mechanism.
The Israeli government facilitated this environment through programs such as the 1984 R&D Law which provided research grants to individuals, private entities, and academia to develop new technologies, the creation of incubator programs to help the growth of startups, and the establishment of the Yozma program, which incentivized venture capital investments in the 1990s, and through innovation authorities that promoted tech entrepreneurship. This has spurred economic growth while establishing a basis for tech diplomacy, whereby Israel can use its technological powers as an instrument of statecraft.
Presently, Israel’s R&D as part of its GDP is considered the highest in the world, about 5.56 per cent. Such high investments in R&D have led to the growth of a vibrant start-up ecosystem, aided by the government, venture capitalist networks, multinational corporations, and academia, which vie to make Israel a tech hub.
Tech Diplomacy: Bridging Geopolitical Divides and Enhancing Soft Power
Israel’s tech diplomacy is deeply intertwined with its geopolitical realities. Situated in a volatile region and facing persistent security threats, Israel has long sought to overcome its isolation by building alliances beyond West Asia. Technology has emerged as a key avenue for achieving this goal, allowing Israel to transcend traditional diplomatic barriers and engage with countries that may have divergent political or cultural perspectives.
Leveraging its technology sector within its geostrategy has allowed Israel to enhance its global standing through soft power diplomacy. This strategy has been key in fostering economic and technological collaboration with other countries. For instance, Israel aims to use its technological prowess to solve global issues related to water, energy, transport, space, health, food security, and technology, through the I2U2 initiative. By connecting Israel’s technology skills to India’s growing economy, the UAE’s prominence as a regional trade hub, and the USA’s role as a world leader, I2U2 provides a platform that encourages multilateral cooperation. With initiatives in tow, such as the India-Middle East-Europe Economic Corridor (IMEC) focused on sustainable growth, infrastructure, and security, these partnerships also serve as useful avenues to further reduce Israel’s regional isolation while enhancing its sovereignty and independence and fortifying the country’s regional and global standing.
Another prominent example of Israel’s tech diplomacy is with India. While the relationship has faced many ups and downs historically, due to India’s alignment with the Palestinian cause, the two states have of late collaborated in defence, agriculture, and other sectors. Israel has become a major supplier of defence and agricultural technologies to India, with bilateral trade amounting to US$6.53 billion in 2023-24. With India de-hyphenating Israel from the Palestinian cause, this partnership demonstrates how technology can unite countries with similar geopolitical interests irrespective of long-standing issues.
Moreover, for Israel, technology is an asset for cooperation with African countries. A case in point is MASHAV, the Israeli Agency for International Development Cooperation, which has been a platform for Israel to share its expertise in water management and agritech with African countries such as Kenya, Senegal, Ethiopia, Rwanda, Ghana, Tanzania, South Africa etc., thus gaining goodwill and expanding Israel’s diplomatic presence. This is another example of how Israel uses technology as a strategic instrument to fight off regional isolation and cultivate new friendships.
Lastly, cybersecurity is the new hallmark of Israel’s tech diplomacy, considering the fast-growing global requirement for digital defence capabilities. Since cyber threats continue to grow in scale and complexity, Israel has become an important partner for many countries seeking the security of vital infrastructure and cybersecurity efforts. For example, Israel’s cybersecurity exports raised over US$10 billion in 2024, with US$4 billion in investments despite the geopolitical upheavals caused by the Israel-Hamas conflict. This technology leadership strengthens Israel’s geopolitical influence. Countries such as the United States and the UAE, its newest tech partner following the normalization of ties with the Abraham Accords, increasingly rely on Israeli innovations to protect their digital ecosystems.
Challenges: Ethical and Political Dilemmas in Tech Diplomacy
The major challenge to Israeli tech diplomacy is the ethical issues in exporting surveillance technologies to authoritarian regimes. Israeli companies have often been accused of the sale of spyware and surveillance technologies to governments accused of violating human rights, thus attaching a moral dimension surrounding Israeli tech exports. Such controversies reduce Israel’s capabilities in securing economic opportunities while questioning its democratic values and making its international relations even more difficult.
Moreover, political sensitivities always challenge Israeli tech diplomacy. For instance, despite Israel’s efforts to foster greater technological cooperation with Gulf states since the signing of the Abraham Accords, any such cooperation is still impeded by lingering anti-Israel sentiments in parts of the Arab world. The limitations of such cooperation show the deep complexities of using technology as an instrument of diplomacy in a politically charged atmosphere.
Israel’s tech diplomacy is a creative solution to emerging geopolitical conflicts. By leveraging technology, Israel has opened channels for engagement, reduced its regional isolation, and demonstrated its soft power to its allies. Israel’s ingenuity in water management and agriculture has become a lifeline for Arab, African, and Asian states, while its cybersecurity solutions help protect the increasingly vulnerable critical infrastructure of several states. However, the ethical ramifications and political sensitivities surrounding Israeli technologies have caused significant criticisms. For Israel’s tech diplomacy to sustain its success, Israel needs to take proactive steps to prioritize ethical considerations and align its technological ambitions with a principled agenda. The country needs to actively balance innovation with responsibility to strengthen its geopolitical influence while maintaining credibility on the global stage.
Disclaimer: The views expressed in the article are personal.
