Israel has the largest number of NASDAQ-listed companies outside the United States, more than all of Europe or all of Asia (including China, India and Japan) combined. Per capita, Israel has the largest government and private sector investments in R&D and number of engineers in the world. The nation has produced firms such as Teva Pharmaceutical Industries Ltd. (valued at $37 billion), ISCAR (the first enterprise that Warren Buffett ever bought overseas), and Check Point Software (used by 100% of Global 100 companies). Technology giants such as IBM, Microsoft, Intel, HP, Motorola, Cisco, GE, Google, Alcatel, Samsung, LG, Phillips, Siemens, and Nokia have R&D and regional business centers in Israel.   All of this in a country of 7 million people, only 60 years old, with no virtually natural resources. Critical factors that have lead to this phenomenal success will be examined and the current state of technology entrepreneurship in Israel discussed.