Israel has already been doing more than its capacity/population/size thanks to USA unlimited funds, unrestricted technology, gigantic offsets (Turkish AEW&C planes ordered from Boeing had even Israeli EW systems. It is realized by public, When Israel refused to supply them to Boeing cause of planes itself ordered by Turkey) and politic supports of West with supplying the best sub-systems on a competitive costs to attract attention of foreign costumers. They are playing with own variants of famous USA strategic projects that ordinary countries are not even allowed to purchase international variants. It is the reason They are pretending to be leader of such technologies with underestimating the capabilities of other countries locating in region, While most part of systems/subsystems on their wellknown products are coming from abroad.
They are not allowed to develop big scale strategic projects like fighters, attack helicopters, frigates as well, since USA doesn’t want a small state a heavy load on his shoulders, developing state of art big scale equivalent products hosting USA technology, subsystems and taxmoney against benefits of own companies/workers/taxpayers. It is the reason they are obliged to order USA based products in return. It is the reason Their growth rate is slowed.
Other reason is that they have reached top of their allowed capacities on small arms and some big scale projects with limited input on its industrial size. Development idea for costly but important subsystems of some big scale products are not cost-effective or feasible to them so their industrial outputs in paralel to overall capabilities thanks to foreign help, came to lines of their limits. They are actually good at system integration and some critical electric/electronic/optic components, modules, fuel chemicals and armour as It suits to their growth strategy based on their size but Rest is a big question.
If Israel was an average Arab state with a Western embargo possibility by politic approach, Noone of their systems including famous drones, armoured vehicles, tanks, missiles would be operational, nor They would have "rightful" reasons to attack right and left When they felt so high. How does a country that has not produced any single civilian car/vehicle/steering components and other automotive sub-systems in past, suddenly appear to introduce itself a land vehicle manufacturer to compete with others? Yep It is only possible If you order many moving/stable components from abroad, then assembly all in your home to introduce with a local name. Actually, It is a painful reality against Israel strong propaganda pumped 7/24 but When you looked at member’s arrogant attitudes, It seems They are very familiar with underestimating the capabilities of a country like Turkey that is on right track to develop assets Israel can not even dream from all type engines, turbo-shaft to turbofan/jet/diesel to heavy submarines, frigates, destroyers, fighters, trainers, amphibious fleet, attack/utility helicopters, any kind of missiles with aiming around %90 national input to be free on export markets without meeting any limitation.