Government's role
But there is more to this start-up scene than certain aspects of Israeli culture - the lack of hierarchy, a constant drive for individualism, regular risk taking. The government played a key role in the rapid rise of this start-up nation.
"The government jump-started the industry," explains Koby Simona from Israel Venture Capital Research Centre.
One was the creation of the Yozma programme in 1993, a so-called fund of funds set up to invest in local venture capital funds that would channel money into new technology firms.
Soon numerous start-ups dotted Israel's industry landscape, and venture capital funds mushroomed all over the country - a blooming industry that quickly attracted foreign investors.
Israel's defence forces are also boosting entrepreneurship.
Military service is compulsory, but besides regular military units, the army also has designated hi-tech units, where computer-savvy conscripts are constantly prompted to come up with innovative ideas in disciplines such as computer security, cryptography, communications and electronic warfare.
"The military enables young people in certain units to get technological skills, to run large technological projects at a very young age, where they need to improvise in order to get fast solutions," says Prof Niron Hashai from the Jerusalem School of Business Administration at Hebrew University.
Once back in the real world, many military alumni use the newly acquired experience to launch their own technology start-ups.