Why do some of the most evil tech companies, especially ones that use exploits and zero-days as part of their business model, disproportionately originate from the same small (population-wise) country? The company from the article, all the other examples everyone here lists, Candiru, NSO... All Israeli.
It isn't all Israel. North Korea, Russia, and Iran have long been known to be where most cyber crime comes from. Israel is there, but they are an also-ran compared to the others. (but Israel does tend to have more sophisticated attacks). The US also has done a large share, but mostly that is government attacks on other governments (that we know of).
Israel has a lot of enemies that going against them. Which is why they have incentive to be good at this - to attack back. Corporate attempts are just ways to make money.
I'm going to stay out of the political issue of what any actor should do.
Their military is very good at cyber-warfare. The gap has narrowed in the last decade, but before that there wasn't even a distant second, maybe Russia. People serve in those units, acquire very useful and specific skills, then start companies that offer commercial variants of cyber-warfare, or become subcontractors for other governments.
In this book, they explain that it's because this industry is de-regulated:
Pegasus: How a Spy in Your Pocket Threatens the End of Privacy, Dignity, and Democracy by Lauret Richard
Seems pretty straightforward. If you are surrounded by adversaries that vastly outnumber you, you invest in other forms of strength
Because those are typically created by ex-military people who had become civilians and now they need to make money with the skills they have.
OK this might be a wild (conspiracy) theory, but what if Israel is just an arms-length scape goat for the US?
Because they are the best at spying in the world by far, and are willing to splash the cash. They're what Silicon Valley would have been if it kept doing government contracts instead of just selling ads.
If Mossad is willing to give you a hundred million to make your startup a spyware company, you're obviously going to agree.
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'I'm not racist against blacks, I'm just pointing out crime statistics in certain communities' vibes
The same reason why many great tech companies originate from Israel. That's why Nvidia is the largest private employer in Israel. Why Apple's CTO is from Israel.
But something tells me that the way you framed your question, is not about the companies and more about you and how you view Israel.
One factor is that Israel generally refuses to extradite their citizens who are accused of crimes in foreign countries. So they effectively operate with a certain level of legal immunity.