This is exactly the same in India as well. We have Ola Cabs here which is an Uber clone and it is a billion dollar company. Likewise, we have flipkart which is an amazon clone and is another multibillion dollar company. We have plenty of clones doing phenomenally well.

The question is this. Why would you ( or should you? ) try and innovate when there are clearly billion dollar problems waiting to be solved (cloned?) right in-front of your eyes in broad daylight. And yes, the impact will be mostly be limited to India but India is a huge market.