Where did Dov Moran invent the USB Flash Drive?

In Israel. More specifically, Dov Moran was then the president and CEO of M-Systems Ltd., an Israeli corporation headquarted in Kfar Saba, Israel when he invented the flash drive. The flash drive was trademarked by M-Systems as the "DiskOnKey" though the vast majority of M-Systems' flash drives were sold by M-Systems to other companies (IBM, DELL, Verbatim, Kingston etc. etc.) for re-sale under their own respective brand names.

To this day, Israelis refer to all flash drives as a "DiskOnKey".