There have been several spywares developed in Israel and that have been used by them and other governments against civilians, below are just a few examples. Why wouldn't you lump Israel in?
If your criterion holds for spyware merely developed in a state, then that commits you not working in the US or UK as well. Something to think about.
Putting that aside, my moral positions about Israel are rooted in the righteousness of the Jews' cause and their historical struggle. My personal self-righteousness is inadequate in comparison.
https://en.wikipedia.org/wiki/Pegasus_(spyware)
https://en.wikipedia.org/wiki/Paragon_Solutions
https://en.wikipedia.org/wiki/Cytrox#Predator