A growing body of literature, the laboratory thesis, explains how the Israel Defense Forces ("IDF") and the Israeli military and security industry uses the occupied Palestinian territories ("OPT") as a laboratory for weapons testing and demonstration to better market their products at international arms fairs. First, in order to further investigate the laboratory thesis, I will explore a political-economic history of Israel’s military and security industry, noting significant trends and forces that shape armament production in Israel today. Second, I will conduct an empirical analysis of the laboratory thesis in practice. My methodology uses two proxies that I argue are representative of Israel’s military and security industry at large. This empirical analysis will compare the occupation’s violence against military and security industry financial interests. I will investigate how IDF operations in the OPT correlate with industry profits. This research can help to refocus the conversation on the questions of endurance of the occupation and violence in the occupation onto the arms manufacturers and defense contractors who have a material interest in its continued prosecution.