Abstract
This study uses path dependence and analysis of feedback structures to identify the determinants for developing a successful technology sector in Israel during the 1990s. The four determinants introduced in the study are: Entrepreneurship, Knowledge Base in the form of academy R&D, industry R&D and military R&D, Financial Base in the form of venture capital and exit market and, Government programs that were specifically designed to stimulate the development of entrepreneurial technology sector. We present a Causal model of the development of technology sector in Israel and discuss its generic applicability.
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