Overall military spending can explain a lot as well. A lot of military spending goes to existing companies as well as startups to develop weapons and defence systems which drives innovation in high-tech technology.
Israel spends 5.3% of their GDP on military. That's more than almost any other country in the world and they have spent a lot for many decades.
https://en.wikipedia.org/wiki/List_of_countries_with_highest...
I don't think the Israeli defense budget really goes into Israeli startups. The only related fields are drone startups and cyber startups that hardly sell domestically
This is of course greatly exaggerated. I know plenty of Israeli startups that never had 8200 grads in them, mine included. I actually think that the role of a specific army unit in creating the environment that fosters these startups is really hyped. It's much more of a cultural thing than some random army unit.