It's not really that damaging.
Israel never recognized American software or pharmaceutical patents, and most countries do some form of Industrial Espionage (France is fairly notable in the space as well [4]).
The wildest cases tended to be back in the 1990s, when Israel was trying to build a domestic armament industry, notably by stealing American IP and selling it to the Chinese [0][1][2][3] (most modern Chinese weapons systems today are based on that IP transfer in the 1990s).
This largely ended by the mid-late 2000s when the Israeli tech industry was much more established, and Ehud Barak (edit: Olmert - mixed up his surname and the Barak middle scandal) getting arrested on corruption charges, heralding the end of Israel's Wild West days in the tech industry.
Also, Tiannammen Era sanctions from the 1990s forced Israel defense companies to pivot to India, which doesn't allow vendors to sell SKUs to India which Pakistan and China have access to, and would leverage French and Israeli SKUs based on American designs.
I highly recommend reading this GAO report from the 90s [3]
[0] - https://www.jstor.org/stable/2538128
[1] - https://www.nytimes.com/1993/10/12/world/israel-selling-chin...
[2] - https://www.jstor.org/stable/1149008
[3] - https://www.gao.gov/assets/t-osi-92-6.pdf
[4] - https://www.politico.com/story/2014/05/france-intellectual-p...