Peloni: Ambassador Yoram Ettinger provides a clear example of how important a role Israel plays in the US military, and what is described as ‘aid’ is actually an American investment in its own future capabilities that are derived from the US-Israeli partnership, which has secured an exponential return on this investment for the American people.
Ambassador (ret.) Yoram Ettinger | “Second Thought: a US-Israel Initiative” | June 4, 2026
IAF F-4 Phantom “Kornass” retired combat jet, Israeli Air Force, Independence Day 2017. Photo by Zachi Evenor from Israel – IAF-F-4-Phantom–Independence-Day-2017-Tel-Nof-IZE-090, CC BY 2.0, Wikipedia
*Israel has been the largest research and development center, outside the US, for the US’ commercial high tech sector. Over 250 US high tech giants – such as Intel, Dell, Amazon, John Deere, IBM, AOL, Applied Materials, Google, Facebook, Cisco, General Electric, General Motors, HP, 3M, Intuit, Motorola, Apple, Microsoft and NVIDIA – have established research and development centers in Israel. They have leveraged Israel’s brainpower, which has produced out-of-the-box and ground-breaking innovations, bolstering the global superiority of the US commercial high tech. This Israeli connection has enhanced the US global competitiveness, saving the US many years of research and development (worth billions of dollars), increasing US exports, expanding US employment and boosting the US Treasury’s (corporate and individual) income tax revenues.
*Similarly, Israel has become the largest research and development center, outside the US, for the US’ defense and aerospace industries (e.g., Lockheed-Martin, Boeing, RTX-Raytheon, General Dynamics, Northrop Grumman and Caterpillar), which employ 2.5 million people. This Israeli connection has saved the US defense and aerospace industries hundreds of years of research and development (10-20 years each in the case of the F-35, F-16 and F-15), which equals to mega-billions of dollars. It has upgraded the competitiveness of the US companies in the global market, raising US exports, beefing up the US employment base and generating more (corporate and individual) income tax revenues to the US Treasury.
*Israel has made significant contributions to the US defense and aerospace industries by enhancing the US’ research and development, effectiveness, sales and employment involved in the F-35 (manufacturer and subcontractors employ 290,000 people), F-16 (47,500 people) and F-15 (25,000-50,000 people) combat aircraft programs, in addition to the Apache and Blackhawk combat helicopter programs, as well as the C-130 programs.
*In fact, Israel’s contributions to the US defense and aerospace industries dates back to the Phantom F-4 program, since it received the first Boeing-manufactured Phantom in 1969 – the first advanced US military system supplied to Israel. As a result, Israel was the first country, outside the US, to fly the F-4E operationally during the 1969 War of Attrition and then the 1973 Yom Kippur War – in its capacity as the cost effective battle tested laboratory for the US manufacturer – setting the F-4E on a considerable path of improvement.
*Track record plays a critical role in enhancing the quality of defense systems, and determining the level of sales to the US Air Force, in general, and export, in particular. The Israeli Air Force’s uniquely-intense and effective track record provided live, high-stakes proof of the F-4E’s effectiveness against Soviet-supplied air defenses and fighters — the exact threat scenario most US allies feared. Israel demonstrated the F-4’s value as a multi-role platform (air superiority, ground attack, reconnaissance), widening its appeal.
*The Israeli use of the F-4E made it attractive to US allies, such as the UK, Germany, Japan, (the pre-Khomeini) Iran, South Korea, (the pre-Erdogan) Turkey, and Greece. The Israeli “Triple-A Store” demonstrated the F-4E’s versatility, air superiority and strike missions. The Israeli Show Room played an outsized role in boosting sales and exports, providing real-world evidence that the F-4E could suppress Soviet air defenses, overcome the Soviet-made aircraft, was effective in high-intensity warfare, and could adapt with indigenous weapons and avionics, especially radar, cockpit and structural upgrades, including engine upgrading.
*Exposing the vulnerabilities of the Soviet air defenses in Egypt in 1969 and 1973, just like exposing the vulnerabilities of the Chinese and Soviet air defenses in Iran in 2025 and 2026 has tilted the global balance of power in favor of the US, since the same air defenses are deployed throughout the globe.
*Israel’s existential challenges yielded a unique operational experience of air-to-air combat, ground attack, and reconnaissance, resulting in non-conventional innovations, continuously modifying the F-4E with improved avionics, communications, fire-control systems, and structural and cockpit upgrades, most of which was shared with the US manufacturer, while the resulting cutting-edge battle tactics were shared with the US Air Force.
*As it has done with the aging Boeing’s F-15 and Lockheed-Martin’s F-16, Israel extended the operational life expectancy of the F-4E, while pushing the operational limits of these combat aircraft through unconventionally intense use and aggressive upgrades.
*A powerful promotion for the F-4E’s capabilities was conducted by Israel’s extensively successful use of the aircraft in real high-intensity combat, leading to more sales to the US Air Force and increased export.
If by “total export” you mean all F-4 Phantom II aircraft delivered to foreign customers outside the U.S. armed forces, the best available figures indicate that approximately 919 F-4s were delivered directly to international customers out of a total production run of about 5,195 aircraft.
The bottom line
*Supplying Israel dozens of advanced US military systems has always advanced US interests, economically and militarily.
*Supplying advanced military systems to Israel has always yielded to the US taxpayer an exceptionally high annual Return-on-Investment (R-o-I) on the annual $3.8BN investment in Israel (misperceived as “foreign aid”). This annual R-o-I includes mega-billions of dollars in research and development savings, increased export, expanded employment, additional income tax revenues to the US Treasury, and upgraded battle tactics for the US Armed Forces. In also consists of an exceptional scope and quality of intelligence, which was compared by a former Chief of US Air Force Intelligence, General George Keagan, to 5 CIAs (the annual budget of one CIA – $15BN). In addition, it consists – according to a former Supreme Commander of NATO and US Secretary of State, General Alexander Haig – of Israel as the largest US aircraft carrier with no US boots on board, saving the need to manufacture and deploy to the Indian Ocean and the Mediterranean a few new aircraft carriers, accompanied by a few ground divisions. The production cost of one advanced aircraft carrier is $10MN-$13MN, and the annual cost of deploying a ground division to the Middle East is $1BN.
*Israel is not a recipient of “foreign aid.” Rather, it is a commercial and national security partner of the US, engaged in a mutually-beneficial two-way-street cooperation, which yields to the US taxpayer a bonanza, exponentially higher than the $3.8BN annual investment made by the US.
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