The military imperative has not disappeared. Even in the era of the peace process, Israel must keep up her guard. In response to the Iraqi Scuds that hit Tel Aviv in the 1991 Gulf War Israel began development of the Arrow anti-missile missile. The Arrow program began as part of the US SDI (Star Wars) program, requiring considerable advances in electronics, computers and ballistics. The Arrow will soon be ready for operational deployment. In general, the search for better systems in the areas of weapons, intelligence gathering, and command and control, goes on apace.
In the 1990s, Israel became only the eighth country in the world to develop and launch satellites, beginning with the Amos civilian communications satellite, followed by the Ofek military satellites and the Eros civilian photo-reconnaissance satellite. Israel now partners with NASA, the ESA and the Russian space program, building component and complete satellites for scientific and civilian uses.
In 2002, two of Israel's six largest industrial companies by turnover were high-tech companies: Israel Aircraft Industries (IAI), Intel Electronics, as well as pharmaceutical company Teva (Nasdaq: TEVA; TASE:TEVA). The largest exporters in terms of sales included high-tech companies Teva, IAI, Intel Electronics, and Vishay Intertechnology (Israel), with over $1 billion in exports each.