Israel’s growth was the result of a unique amalgamation of conditions, some replicable, and some not. There are many factors unique to Israel which do not lend themselves to replication: Massive amounts of aid from extant developed nations (especially the United States), unheard-of levels of high-skilled immigration, a uniquely overdeveloped military research complex, and a total inability to trade with any directly bordering nation because of fractious geopolitics. However, the unique aspect of Israel that many commentators argue is the single biggest factor in Israel’s success can be summed up in a single Hebrew word: chutzpah. These will each be elaborated upon in turn below. However, there are also a few replicable lessons to be gleaned from a review of Israel’s growth. These include the importance of fiscal austerity, deregulation where it matters, research & development, and the importance of a large state-backed, state-funded venture capital effort to jump-start highspeed growth as Israel has seen. These, too, will be elaborated upon below.

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