I tried to answer the question, more or less, in a recent television interview on TV Ontario's thoughtful program, "The Agenda." (My thanks to the show's host, Steve Paikin, who does his homework, and gives his guests time to make an argument.) In a nutshell, what drives most Israeli entrepreneurs crazy when they hear Brooks, Dan Senor, Saul Singer, and other neocons rhapsodize about Israel's economy is the use of its (provisional) success to manage Israel's brand abroad, implicitly defending Bibi Netanyahu's status quo. Presumably, the fight with the Arabs leads to an army, the army to technology, technology to a pulling away from neighbors, economically and in terms of "freedom," and the pulling away should be respected, emulated, and defended by Israel's friends (you know, Americans).
"This is bullshit. Bullshit. Investors will not come to us in a big way unless there is political stability. Personal and economic stability, or the hope of stability—a process. In the global economy, you don’t only need Jewish investors, you need global investors. Investment is not colored with sentiment, and looks at the overall situation. What Bibi says is demagoguery. He’s done some of the right things which in a healthy environment would have been pretty good. But before these policies can have an impact, we’ll have more violence. In this environment, big companies do OK, and little independents do very badly.”
But what about all the investment we have seen, even the uptick in the stock-market?