What are Israel doing to get so good at this and chip design and weapons making and everything else they seem to be really good at? There’s only about 8 million people in the whole country. There are plenty of cities with more people than that. How come they punch so far above their weight?
Similar cultural enclaves exist elsewhere in the world and are presumably similarly effective, but they just aren't as large a portion of the population.
Even small cultural differences can have outsized effects because of pollination-- e.g. it's easier to learn from an expert in a domain if there are more experts around you.
I think your question isn't really that much different to asking why the bay area has "punched above its weight" in terms of producing successful tech companies compared to other regions around the US... or why other regions have had a lot more success in other domains.