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Start Up Nation: Myth or Reality ? (Tel Aviv)

I just read a book by two very pro Israel, American-Israeli authors.
Not regarding the affiliation of the authors nor their personal stance the book was an interesting read.
The lingering question which remains upon concluding the book: is the basic claim of the book true ?
That Israel is a hotbed of innovation in particular in the high tech realm and that most Silicon Valley based companies rely heavily upon Israeli subsidiaries for mission critical tasks.
Furthermore that the personal networks and fraternity among Israelis from all walks of life is an advantage for fostering and financing entrepreneurship. Rather than leading to corruption and stifling of competition as claimed by the IMF and others who have taken a look at the Israeli economy.
Tel Aviv was recently mentioned among the leading cities in the world when it comes to innovation. As Richard Florida would put it: Talent, Tolerance, and Technology. So does that mean that the TA metropolitan area in particular rather than Israel at large is The place where the innovation and the creativity takes place ?
Thank you for your time )