Israel Must Boost Investment in Domestic Defense Industry to Maintain Security Independence
Boaz Levy, Chairman of Israel Aerospace Industries, emphasized the critical need for Israel to increase investment in its domestic defense sector during the Future of Industry conference hosted by Calcalist and the Holon Institute of Technology. Speaking amid growing concerns about potential future restrictions on foreign arms supplies, Levy stressed that maintaining Israel's technological edge requires sustained funding in local industry, infrastructure, and human capital.
Levy highlighted that the advanced weapon systems used in recent conflicts were developed over decades and questioned who will develop the next generation of defense technologies. He called for a focus on "engineering thinking," which prioritizes understanding why systems are developed, rather than just how. Levy cited the Iron Dome missile defense system as an example of a once futuristic concept that became a reality through long-term innovation.
Regarding artificial intelligence, Levy acknowledged its importance but urged a realistic perspective, noting that AI’s effectiveness depends heavily on data quality. He explained how AI tools now enable automatic analysis of satellite images and real-time battlefield information, significantly shortening development cycles and reducing costs by relying more on data-driven modeling than physical testing.
Levy also discussed the role of academia in preparing engineers, advocating for stronger emphasis on engineering thinking over purely mathematical skills. He pointed out that experienced engineers paired with new talent produce the best results.
On defense budgets, Levy recognized the financial constraints but argued that Israel is in a prolonged state of conflict requiring ongoing investment to preserve the Air Industry’s battlefield superiority. He called for coordinated efforts among the government, defense ministry, finance ministry, and industry to build a framework supporting continued development of Israel’s independent defense capabilities and national security.
