The Olam
The Pentagon Next Door: Why Virginia Is Israel's Defense Corridor in America
Real Economy

The Pentagon Next Door: Why Virginia Is Israel's Defense Corridor in America

Ronn Torossian
Publisher · The Olam
Aug 7, 2026

119 Israeli-founded companies. $2.3B in output. Night vision in Roanoke since 1959. IAI HQ in Herndon. 38 of the top 100 defense firms in one county.

Sixty-six years. That is how long the Roanoke County night vision facility has been manufacturing for the US military. It opened in 1959 as an ITT plant. Passed through Exelis and Harris Corporation. Now it belongs to Elbit Systems of America — the US subsidiary of Israel's Elbit Systems.

In November 2025, Governor Glenn Youngkin announced a $30 million expansion of the facility. 288 new jobs. Workforce to over 1,000. Low-light night vision devices and image intensification tubes — the hardware American soldiers carry into the field.

This is not a startup story. This is industrial infrastructure.

The Numbers

The 5W Israeli Tech in Virginia report documents what USIBA's 2025 economic-impact study measured:

119 Israeli-founded companies operating in Virginia. $2.3 billion in gross economic output. 3,767 direct jobs. 7,847 total jobs with multiplier effects. $998 million in value added to the Virginia economy. Average earnings: $77,408 per employee.

Virginia's per-company output — $19.3 million — is the highest of any state in the 5W Israeli Tech State Report Series. The reason is defense. Defense companies are capital-intensive. The contracts are large. The margins sustain high-wage manufacturing employment for decades.

The Three Anchors

Elbit Systems of America — Roanoke County. Night vision manufacturing. 1,000+ employees after the 2025 expansion. Operating since 1959 under successive corporate owners. Governor Youngkin approved $1.5 million in state incentives. The facility produces the image intensification tubes that go into every US military night vision device Elbit supplies.

Israel Aerospace Industries (IAI) North America — Herndon, Fairfax County. Israel's largest aerospace and defense company operates its North American headquarters from the Dulles Technology Corridor, directing $800 million in annual US business. IAI expanded its Fairfax headquarters in 2019. In 2024, it launched IAI Catalyst — an aerospace accelerator in partnership with Starburst Aerospace, supporting startups in AI, quantum science, sustainability, and space technology.

Sabra Dipping Company — Chesterfield County. A Strauss Group/PepsiCo joint venture operating the world's largest hummus factory. 500+ employees. Three expansions since 2010. Chesterfield County leads all Virginia counties with 2,351 Israeli-linked jobs.

Why Virginia Is Different

Florida is the entry point. Texas is the scale-up partner. Georgia is the 33-year institutional relationship. Virginia is the procurement corridor.

Fairfax County hosts 38 of the world's top 100 defense companies. The Pentagon, CIA, and NSA are within 30 miles of the Dulles Technology Corridor. The Fairfax County Economic Development Authority has maintained a Tel Aviv office since 2004. The Virginia Israel Advisory Board has operated as a state agency since 1996.

For Israeli companies selling to the US government — Virginia is the only logical base. The customer is next door.

The Institutional Layer

VIAB — led by Executive Director Dov Hoch — distributed $3 million in BIRD Foundation R&D grants in 2024 alone. Twenty-five grants awarded since inception.

Hoch: "Life sciences, agriculture, deep tech and especially defense have tremendous potential to attract hundreds of millions of dollars in investment in Virginia that bring thousands more jobs and innovation to our communities."

USIBA identifies agriculture and life sciences as priority growth sectors — underdeveloped opportunities for Israeli companies alongside the established defense corridor.

The Four-State Picture

Virginia is the fourth state in the 5W Israeli Tech State Report Series:

New York — $19.5B output, 57,145 jobs, 648 companies

California — $9B output, 22,650+ jobs

Florida — $7.3B output, 429 companies, 26,510 jobs

Texas — $3.2B capital, 4,200+ jobs

Virginia — $2.3B output, 119 companies, 7,847 jobs

Georgia — $5.4B cumulative trade, 50+ companies

Israeli companies are not experimenting in America. They are embedded. The geographic map has shifted. Virginia is where the defense corridor sits.

Related Reading

The Map Changed: Where Israeli Tech Actually Builds in America

The Israeli Tech Founder Generation

The Analyst Record: Why Israeli Technology Appears Everywhere Enterprise Buyers Look

The US Institutional Investor Map in Israeli Tech

The M&A Tracker Q1 2026


Ronn Torossian is the founder and chairman of 5W AI Communications, the AI Communications Firm. He is the publisher of Everything-PR and the author of two best-selling editions of For Immediate Release.