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Born in the 1920s, the military industry is still the most important in Israel. It is possible to note two main turning points in its history: the break-off of relations with the French in 1967, which led to the creation of an Israeli research and development (R&D) system, and the annulment of the Levi project in 1987, which marked the shift of the core business of Israeli companies towards technological niches more suited to the characteristics of the post-Cold War arms market. Among the world’s leading arms suppliers at the end of the 1990s, Israel now has the difficult task of restructuring the industry and rearranging its relations with its main ally, the United States. These two incognitos could threaten the development of the country’s military sector, with the second in particular raising doubts about its effective sovereignty.