The intention of this paper is to analyze the impact of a threat environment in the creation of a hi-tech cluster through the development of an independent defense industry. In order to conclude the implications of a military industry in the development of a hi-tech cluster, it was studied the case of the evolution of Israel’s defense industry into a diverse hi – tech industry (Silicon Wadi). This work emerges from a personal concern in order to understand if there are some benefits or positive side effects in developing an indigenous military industry.  Coming from a country in the developing process that has no military forces (Costa Rica) and at the same time has been struggling to create a hi-tech cluster, I wanted to learn what are the implications in the hi-tech sector for lacking an indigenous defense industry and a threat environment. As it will be presented in this study, the major implication of having an independent defense industry is that it creates a path dependency in the military sector and if it’s handled correctly through the cooperation between academia, military forces and business sectors it will be possible to create transitions of this technologies into civilian applications, diversifying the entrance of resources and creating an entrepreneur environment.