The difference is that the US is home to some of the best universities, attracts a lot of educated/talented people and has the largest knowledge economy in the

The difference is that the US is home to some of the best universities, attracts a lot of educated/talented people and has the largest knowledge economy in the world. So while India might have failed to develop great cars and whatnot as you claim, the US could (and does) that just fine. Taiwan and South Korea can hyper-focus on one or two sole industries because their population's sizes are fairly small (comparatively), and that has turned out well for them -- but I think the US needs to at least partially dominate a range of industries to stay afloat. Also, people forget 1850 Germany essentially entered the industrial age through a good dose of protectionism. It worked because they already enjoyed a good educational system and skilled workforce.