The US Commerce Department's announcement that it had added Israeli cybersecurity companies NSO and Candiru to its "entity list" as firms that "engage in activities contrary to the national security or foreign policy interests of the United States" comprises more than a blow to their business. While the US decision might be a symbolic one, it could have dramatic ramifications that would hurt Israel's power of attraction.
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When the former Soviet Union fell apart, the American professor Joseph Nye introduced the term "soft power," which describes the ability of a country to implement its interests and influence other countries in ways other than expressions of "hard power" such as military might or financial sanction. The term soft power was born out of the recognition that countries' ability to promote their interests was also dependent on their ability to cause other countries to be like them. For example, the US' position as the only superpower left after the Cold War was based not only on its military power, in comparison to the Soviet giant, but also on its excellence at the soft power level. This rested on lifestyle, a free economy, and its vibrant democracy, which were seen as attractive.
In contrast to long-standing perceptions in research into international relations, which see large countries as more dominant, global politics in the 21st century make it possible for small countries to have an influence greater than their size. To be seen as attractive, small countries invest in education, innovation, their economy, and technological development. This takes on special significance in the digital age, which carries numerous threats, but also allows these countries to maximize new opportunities by investing in the cyber sector.
From the start, Israel has invested in human capital, in education, in science and technology, to develop its qualitative edge and grapple with the Arab world's quantitative advantage. To prepare for national security challenges of the 21st century, Israel has promoted a national plan that is designed to position it as a world cyber leader. The government strategy created an attractive cyber "eco-system" that stretched across the government sector, the defense and security establishment, academia, industry, and the private sector, turning Israel into a sought-after political player in the Middle East and world at large, including countries with which it still does not have official diplomatic relations.
At the same time, the Israeli cyber capabilities, particularly its offensive ones, have become a target for entities seeking to tarnish the country and hurt its international image. Recent reports claimed that Israel brokered sales deals between NSO and various national regimes thought to harm human and civil rights.
The competition between the narrative and the winning story is no less important than conflict on the traditional battlefield. Countries have to remain alert to the possibility of malicious use of technologies and powerful tools. It is likely that the policy of oversight on export of Israeli technology, for both civilian and military purposes – such as cybertech – is undergoing adjustment. But when restrictions on Israeli cyber companies is supported by its closest allies, it should serve as a warning light. Limitations on the Israeli cyber industry could weaken Israel's technological-security-economic abilities and invite future attacks.
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