Arguably because of state intervention in the economy. They give generous cash subsidies across various industrial sectors -- and as "investors" they have a remarkably light touch! Their standard modus operandi is to subsidize a number of competing ventures per sector (which number could be somewhere in the dozens or hundreds) and have competition take care of the rest. This is always good for the consumer, good where the perception of fairness is (internally) concerned, and good for the government's position of power. They don't build monopolies, nor are most firms left to scramble for multiple successive rounds of VC funding.
America prefers protectionism and tax credits; a markedly inferior overall strategy. We know this from the past five decades of economic history. Subsidies to high-value and growing technological industry are the best way to go from poor to rich, and the best way to go from "not producing much" to "producing everything we want."
On the topic of economic development, David Landes is worth reading, both the Unbound Prometheus and The Wealth and Poverty of Nations provide a solid understanding of the reasons behind the development of Western Europe over the past 500 years.
The 5 Dragons (Taiwan, South Korea, HK, Singapore, Japan) followed pretty much the same recipes that made Britain, France, Germany, Switzerland industrial powerhouses in their days.
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Arguably because of state intervention in the economy. They give generous cash subsidies across various industrial sectors -- and as "investors" they have a remarkably light touch! Their standard modus operandi is to subsidize a number of competing ventures per sector (which number could be somewhere in the dozens or hundreds) and have competition take care of the rest. This is always good for the consumer, good where the perception of fairness is (internally) concerned, and good for the government's position of power. They don't build monopolies, nor are most firms left to scramble for multiple successive rounds of VC funding.
America prefers protectionism and tax credits; a markedly inferior overall strategy. We know this from the past five decades of economic history. Subsidies to high-value and growing technological industry are the best way to go from poor to rich, and the best way to go from "not producing much" to "producing everything we want."
More than that. It's the closest thing we have to a successful economic experiment replicated multiple times in real life.
It's the Japanese model. Meiji Japan, post-WW2 Japan. South Korea, Taiwan, Singapore, Hong Kong, China more or less followed the same pattern.
On the topic of economic development, David Landes is worth reading, both the Unbound Prometheus and The Wealth and Poverty of Nations provide a solid understanding of the reasons behind the development of Western Europe over the past 500 years.
The 5 Dragons (Taiwan, South Korea, HK, Singapore, Japan) followed pretty much the same recipes that made Britain, France, Germany, Switzerland industrial powerhouses in their days.