Start-up nation is a pretty good book that tries to answer that exact question: http://en.wikipedia.org/wiki/Start-up_Nation http://en.wikipedia.org/wiki/Start-

Start-up nation is a pretty good book that tries to answer that exact question: http://en.wikipedia.org/wiki/Start-up_Nation http://en.wikipedia.org/wiki/Start-up_Nation (I'm not affiliated in any way) The authors argue that a major factor for Israel's economic growth can be found in the culture of the Israel Defense Forces, in which service is mandatory for most young Israelis. The authors believe that IDF service provides potential entrepreneurs with the opportunities to develop a wide array of skills and contacts. They also believe that IDF service provides experience exerting responsibility in a relatively unhierarchical environment where creativity and intelligence are highly valued.[6] IDF soldiers "have minimal guidance from the top, and are expected to improvise, even if this means breaking some rules. If you're a junior officer, you call your higher-ups by their first names, and if you see them doing something wrong, you say so."[1] Neither ranks nor ages matter much "when taxi drivers can command millionaires and 23-year-olds can train their uncles," and "Israeli forces regularly vote to oust their unit leaders."