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That is they steal designs of small foreign companies and then market world wide with Israeli Government support, often in direct under cutting competition of the small companies, that can not defend themselves.
Almost any part of the Tech Sector will give up examples of these sorts of behaviour, and it's fairly well recognised as being if not direct Israeli Government Policy certainly condoned and offenders protected.
The idea is that slight modifications of the plain text create slight modifications to the cipher text, resulting in a file you can efficiently rsync over the net without sharing your encryption key with the server.
It goes without saying that this involve some weakening of the actual encryption, but in my (obviously biased) view, nothing serious. I filed (online), and for "information about the encryption", I put in a link to the project's web site.
Likewise another Chinese method of "educate and repatriate".
Where dual passported and similar Israeli youth get educated in other countries and then after working their way through research degrees etc go home with what they have learned.
However it is also known that Israel does not always send out spys.
But rather uses "The Chinese method" whereby engineers of Jewish descent wishing to go and live or retire in Israel are encoraged to do rather more than give up their non Israeli identity documents.
On another point raised, that Israel has a 10% world market share with less than a 0.11% share of world population one part of the explanation is IP theft.
Then again, he also told that all of the AES submissions were given a CD with all the submissions, which the US authorities then told him he cannot take out of the USA.
The law is fairly draconian, but its actual implementation is anything but.
• December 8, 2015 AM We read this paper previously and noticed the emphasis on the expanded terminology, wondering if anyone in the US would notice.
In the US, encryption and cryptography mean pretty much the same thing. Commonly it is taught that there is private-key and there is public-key, and that's it.What does happen is that the IDF recruits very smart people, and develop, in house, both the software and the hardware they need. In addition to the obvious one, the veterans then go to the high tech industry, often developing products that are designed to protect against precisely those types of attacks, boosting Israel's economy.