So far as I know, the main reasons Israel became a startup nation are:
-The Israeli Defense Force: The IDF (Israeli Defense Force) is a great training ground for entrepreneurs. Not only do you learn how to lead and manage people, but you also learn how to get things done under pressure and with limited resources.
-The Law of Return: The Law of Return allows any Jew to immigrate to Israel and become a citizen, which means that there is a steady influx of highly-skilled workers from all over the world.
-The Yozma Program: The Yozma Program was a government initiative that provided funding and mentorship for startups.
-The Israeli MassChallenge: The Israeli MassChallenge is a global startup accelerator that provides mentorship, resources, and access to a global network of entrepreneurs.