By – Vansh Aggarwal

Abstract

India’s innovation story stands at a critical juncture where global ideas must meet local realities. Drawing lessons from Israel’s state-led innovation, defence-tech advances, and agri-tech revolution, India can adapt these models to its unique socio-economic landscape.

Introduction

There is a Japanese saying, ‘Dochakuka’, which means adapting global knowledge to suit local conditions. This idea, later termed “Glocalisation” by sociologist Roland Robertson, reflects a powerful truth for modern economies that innovation need not be invented from scratch but can be intelligently adapted. Known as the ‘Start-up Nation’, Israel stands as a remarkable example of how a small country with limited resources and hostile borders transformed its economy through state-backed innovation, cutting-edge agriculture, and dual-use defence technology. India, with its vast geography, demographic dividend, and emerging innovation ecosystem, holds the potential to replicate and adapt such models. As Henry Kissinger once said, “Discovery may be the single most exhilarating capacity of the human species.” The challenge for India is to make that discovery work within its unique socio-economic context by glocalising ideas, learning from Israel’s experience, and building an innovation-driven, inclusive economy.

The Israeli Innovation Ecosystem

Israel has earned the title of the ‘Start-up Nation’ due to its unmatched density of tech start-ups per capita. Israel has over 6,000 active start-ups and global R&D centres operating in a country smaller than Haryana. At the heart of this success is proactive and sustained government intervention. The transformation began with the Office of the Chief Scientist, which later became the Israel Innovation Authority, a body that not only funds R&D but also connects researchers with market needs. One of the most game-changing initiatives was the Yozma Program, launched in 1993. Apart from the innovation ecosystem, Israel’s military service plays a surprising yet central role. Elite intelligence units like Unit 8200 have become informal “bootcamps” for future entrepreneurs, where soldiers work on cutting-edge AI and cybersecurity tech, which later evolves into commercial start-ups.

While initiatives like Startup India have fostered a vibrant start-up ecosystem, India still lacks a robust public R&D framework and a well-integrated military-tech collaboration model. Greater synergy between DRDO and tech companies is essential to boost indigenous innovation and translate defence research into dual-use commercial technologies. States could emulate Israel by creating regional innovation authorities, establishing public VC funds, and developing tech incubation cells linked to institutions like ISRO or DRDO. If localised well, these policies can turn tier-2 cities into innovation hubs. India doesn’t need to reinvent the wheel; it just needs to adapt the Israeli model with local flavour.

Arid Land to Agri-Tech Powerhouse

Israel has revolutionised agriculture by turning its biggest disadvantage, desert land and water scarcity, into a driving force for innovation. With only 20% of its land arable and minimal freshwater resources, Israel pioneered desert agriculture, using drip irrigation and precision farming to maximise yields with minimal inputs. The Volcani Centre, Israel’s national agricultural R&D institute, and Netafim, the world leader in drip irrigation, represent the backbone of this transformation. The government supports this ecosystem through public-private partnerships (PPPs), subsidies for R&D, and policies that link agriculture with export markets.

States like Rajasthan, Maharashtra, and Gujarat, which face chronic drought and water stress, can benefit from the localised adoption of Israeli techniques. India should pilot agri-tech innovation zones, where research institutes partner with private firms to develop and test precision agriculture solutions tailored to local conditions. The PM Krishi Sinchayee Yojana, which aims to promote water-use efficiency, can incorporate Israeli drip systems more systematically, especially at the panchayat level, where direct farmer access is possible. This model doesn’t just address water issues; it can also shift Indian farming toward high-value crops that suit global markets. 

Defence Technology and Dual-Use Innovation

Israel’s unique geopolitical situation, surrounded by hostile neighbours and facing constant security threats, has led it to treat defence not just as a necessity, but as a driver of innovation. Over the decades, Israel has developed a highly advanced defence sector with a sharp focus on dual-use technologies, systems designed for military use but later adapted for civilian purposes. Innovations in AI, surveillance drones, missile systems, and cybersecurity were initially meant to enhance national security, but they have since been commercialised and embedded in various civilian industries like agriculture, logistics, fintech, and urban surveillance.

India, through the Make in India Defence initiative, has started walking a similar path by pushing for the indigenisation of military hardware. India must begin by nurturing collaboration between DRDO, private firms, and start-ups. Dual-use innovation must be treated as a strategic policy goal. One powerful tool India already has is the defence procurement offset clause, which requires foreign suppliers to invest a portion of their deal value into India’s defence ecosystem. These funds can be channelled into building local R&D hubs that partner with academic institutions and start-ups, similar to how Israel developed firms. If implemented well, this approach could make defence spending a multiplier for India’s tech economy, with benefits reaching far beyond the battlefield.

Localising the Israeli Model: Public Policy Levers for India

To effectively glocalise Israel’s innovation-driven growth strategy, India must focus on policy localisation, adapting global best practices to India’s diverse regional and sectoral needs. One way to start is by building regional innovation corridors. Cities like Hyderabad, Ahmedabad, and Bhubaneswar already have emerging ecosystems in biotech, fintech, and Agri-Tech. The Centre and states should collaboratively invest in physical and digital infrastructure, creating sector-specific clusters connected to nearby universities and R&D institutes. To strengthen this, India’s Technology Incubation and Development of Entrepreneurs (TIDE) model under the Ministry of Electronics and IT must be revamped to reflect regional needs. For instance, a TIDE centre in Maharashtra could focus on drought-resilient agri-tech, while one in Odisha could work on coastal climate solutions.

On the funding side, India can learn from Israel’s Yozma model, which created a vibrant venture capital culture by de-risking early-stage innovation through public-private partnerships. Indian states should set up state-run venture capital funds, especially for Tier-2 and Tier-3 city entrepreneurs, offering matching capital to private investors. Moreover, India can tap into its large global diaspora, especially in Silicon Valley and London, to create diaspora-backed tech funds, similar to Israel’s strategy in the 1990s.

To push innovation in priority sectors, India needs to launch mission-mode projects. For example, deep-tech solutions in agriculture can be embedded into schemes like PM-FME and PM-KISAN, focusing on high-value crops and climate-smart tech. Similarly, cybersecurity and AI can be fast-tracked through partnerships between the Ministry of Education, IITs, IIITs, and private firms. Finally, to mirror Israel’s military-tech pipeline, India must invest in defence-tech skilling. While India lacks compulsory military service, it can launch national defence-tech fellowships, where engineering students are placed in DRDO labs or defence startups. IITs and NITs can also integrate defence-related innovation into their research curriculum. 

Challenges to Indian Glocalisation

While glocalising successful foreign models like Israel’s offers immense potential, India faces significant on-ground challenges that must be addressed for such policies to succeed meaningfully. One of the most persistent obstacles is bureaucratic inertia. Innovation in India is often hindered by complex regulations, slow-moving approvals, and overlapping responsibilities between ministries. Unlike Israel’s agile policy institutions, like the Israel Innovation Authority, India’s innovation bodies often lack autonomy and inter-departmental coordination.

Perhaps the biggest challenge is cultural. In Israel, failure is seen as a learning step. In India, societal and institutional pressures often discourage entrepreneurial risk-taking, especially in smaller towns and conservative sectors like agriculture and defence. To truly glocalise, India must foster a culture that supports experimentation, tolerates failure, and empowers local problem-solvers to innovate boldly.

Conclusion

India has the advantage of scale, talent, and an emerging start-up culture, but these need to be matched with bold policy reforms, stronger public-private partnerships, and a willingness to embrace risk at every level, from government institutions to individual entrepreneurs. Programs like Startup India, Make in India, and Atmanirbhar Bharat have set the stage, but the next step lies in deeper localisation, smarter governance, and targeted innovation in agriculture, defence, and technology. At the heart of glocalisation is the belief that global ideas can unlock local solutions, provided we are ready to adapt them with courage and creativity. The journey may not be easy, but it is necessary if India wants to transform itself into a truly innovation-driven economy that serves both local communities and global markets. So, as India stands at the crossroads of opportunity and challenge, the real question is, will we dare to learn, localise, and lead?

Author’s Bio:

Vansh Vijay Aggarwal is a B.A. LL.B. student at Jindal Global Law School and a columnist at CNES.

Image Source: Envíos militares revelan creciente cooperación entre India e Israel – Noticias de Israel