With existing transistors nearing the physical limitations for miniturization and heat density, scientists are constantly trying to find new materials and methods in which to compute.
The Technion Institute of Technology in Haifa has developed a working transistor built of strands of DNA and a carbon nanotube.
http://nanotechweb.org/articles/news/2/11/13/1
Another development of alternative computing technology is a civilian Israeli company (called Lenslet) claiming to have developed a fully optical computer.
http://in.tech.yahoo.com/031029/137/28wdo.html
Yes, I just threw "living ships" in the title to give a link, however tenuous, to Space Empires IV. Hehe.
Anybody thinks I should have split this into two topics?
[edit:] Just as a reminder: A large portion of Israel's GDP still comes from high-technology exports. The Technion is considered among the best technology universities in the world.
[ November 26, 2003, 08:41: Message edited by: Nocturnal ]