ABSTRACT
The Israeli industrial sector is characterised by relatively small enterprises. Its modern roots were largely sown by petty entrepreneurs from Europe, who came to a small and isolated country. Local market size has constrained the growth of Israeli enterprises to modest proportions by global standards. The Arab boycott has discouraged investment of large multinationals, with a few excep-tions which are mainly in the electronics industry in which Israel enjoys a comparative advantage. In addition, Israel’s geopolitical position has not made it easy for local firms to penetrate global markets to a great degree.
