The Start-up Nation in times of uncertainty: analyzing the impact of recent shocks on Israel’s innovation ecosystem.

This thesis investigates how innovation ecosystems respond to shocks, focusing on Israel as a case study. In 2023, the country, often described as the “Start-up Nation” for being one of the leading global innovation hubs, faced two major crises: the attempted judicial reform and the war that began on October 7, both of which had significant repercussions on its innovation ecosystem. Adopting a qualitative methodology, based on semi-structured interviews with key actors from business and academia and complemented by official reports and secondary data, the research examines the effects of these shocks on different components of the system, the responses adopted, and the structural and cultural factors that supported resilience. It also considers the future perspectives of the ecosystem, assessing how these challenges may influence its long-term trajectory. The analysis shows that the main features underpinning Israel’s competitiveness, such as human capital, state intervention, international integration, and support infrastructures, were strongly tested by the crises, exposing not only strengths but also structural vulnerabilities. At the same time, collaboration among actors and a culture of rapid adaptation enabled continuity and maintained growth prospects even under critical conditions. The thesis contributes to the academic debate on National Innovation Systems and Innovation Ecosystems in times of crisis, offering an explorative research of the dynamics of the Israeli innovation ecosystem under conditions of instability.