With over 3,000 scientists, engineers, and technicians spread out in some 86 companies, and in 10 universities and research institutes, all within less than a 2 hour drive from one another, Israel has no doubt one of the largest concentrations of researchers and skilled manpower in electro-optics and lasers in the world. This report presents an up-to-date picture of the field in Israel, covering the industry, academia and education. The recent wave of Russian immigration is bringing thousands of scientists and tens of thousands of engineers and is expected to make an impact on the field of electro-optics and lasers. A million immigrants from Russia are expected to come between 1990 and 1995. There were 3,700 scientists and 2,800 engineers among the first 200,000 Soviet immigrants. As most of this qualified manpower can not be expected to be absorbed by the existing industry, the Israeli government is actively encouraging local and foreign investors and local and multinational companies to help develop new and expanded high-tech enterprises in Israel. The Ministry of Industry and Trade has embarked upon a broad ranged program for industrial growth and immigrant absorption with the goal of doubling technology-based exports in the next four years. The Ministry of Science and Technology has started a program supporting R&D projects at the different universities for immigrant scientists with the goal of capitalizing on the talents of the newcomers to strengthen academia.