The history of the aeronautical industry in Israel may be traced back to the declaration of independence in 1948, with the establishment of maintenance infrastructure for the Israel Air Force (IAF) fleet. Today, the aeronautical industry is one of Israel’s largest, thanks to Israel Aircraft Industries (IAI), also Israel’s number one exporter with a company value of over $10 billion. It is the country’s single largest employer (it employs thousands of engineers – most of whom are Technion graduates), and generates more than 75% of its activities towards marketing abroad through its 17 offices located worldwide (in Asia, Latin America, Europe and the U.S.). IAI encourages joint ventures and has participated on many such projects with giants such as Boeing and Lockheed Martin. Over the past few decades, the company expanded into new areas including a space sector and a private jets sector, and novel military intelligence equipment were developed.
The industry associated with jet engines in Israel was established in parallel to the aeronautical industry. The major one, established by Joseph Szydlowsky in 1968 was Beit Shemesh Engines Ltd. Other related companies include R.S.L., Becker Engineering , and in the Gas turbine field Ormat and the Israel Electric Company.