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Strengths

Incubator programs with Government backing
Rigorous and high tech focused educational institutions
Defense industry support and innovative focus
Highly educated labor force (Especially Russian Immigrants)

Israel excels in providing innovative ICT solutions/exports compared to India which is more focused towards ICT back office operation services. Israel also takes advantage of ICT clustering and is considered world's second (called Silicon Wadi) most important high-tech cluster after Silicon Valley in USA. Israel also has the best telecommunications infrastructure in the middle-east. Even when compared to developed countries like USA, it is consistently ranked closer to other developed nations for ICT readiness.

Israel's successful ICT policy focuses on telecommunication regulation, e-government, and innovative incubation schemes.

Weaknesses

Continued risk of terrorism and war
Dependence on United States markets
Brain drain to United States

Israel's ICT industry draws its success in revenues from United States markets. This though successful also results in brain drain and subject Israeli economy to effects of US economic cycles. Political risk is very high which could be a turn off for further foreign investment in Israel and even worse departure of multinational firms.