Intel has a significant presence there as has probably a number of other American companies and since they stay there despite the logistic and PR issues there must be some advantages.
A whole lot of other products and tech originate in Israel it seems, so much that every boycott Israel campaign only get so far before everyone figure out it isn't worth the trouble.
Besides Israel has been invaluable in getting intelligence about Russia, which as far as I have understood was the reason why the US military became so close friends with Israel in the first place.