larger - exceeding $10 billion, or 60% of total industrial exports. Much of the fast growth of this section of industry may be attributed to the influx of highly skilled manpower arriving in Israel with the recent wave of immigration. Also, hi-tech industry in Israel enjoys generous R&D public budget allocations and high rates of return on investments. It is no wonder that keen interest in Israeli hi-tech shares is shown in stock exchanges around the world.http://www.israel-mfa.gov.il/mfa/go.asp?MFAH00uc0Over the last few years, Israel has come to resemble Silicon Valley, and much of its innovation can be traced to the technical training its entrepreneurs received in the military. Indeed, with a total population of only six million, there are more than a hundred Nasdaq-listed companies based in Israel and an estimated 4,000 startups in the pipeline. Even optimists, however, such as Zeev Holtzman, chairman of Zinook and Giza Venture Capital, believe there will be a slowdown in the fourth quarter. But Holtzman thinks such a downtick will be more attributable to activity in foreign capital markets than the war. Holtzman sees the U.S. economy and the Nasdaq as the primary drivers of Israel's technology sector.There is also a concern that the fighting may threaten investment in the research and development, Zinook's third-quarter report claims that of total money raised the largest chunk, 45 percent, went to research and development. At present, Israeli research centers are located far from the fighting. The televised clashes occur overwhelmingly in the Palestinian occupied West Bank. In other parts of the country, it's business as usual. Still there is one looming threat to keep an eye on, is the electronic damage caused by a “cyber jihad.” Internet attacks have increased sharply, with all the recent fightings, forcing at least 40 sites to temporarily shut down, including Israel's Ministry of Foreign Affairs and Defense Forces....
