>Countries can have cutting edge industries AND still lag behind in development - Brazil (Defense, Aerospace, ONG, Automotive), South Africa (Defense), Turkey (

>Countries can have cutting edge industries AND still lag behind in development - Brazil (Defense, Aerospace, ONG, Automotive), South Africa (Defense), Turkey (Defense, Automotive, ONG), Mexico (Defense, Automotive, ONG), Russia (ONG, Defense, Aerospace, Automotive), Malaysia (Automotive, ONG, Electronics), etc are all countries that are major innovators and even leaders in STEM/innovtion heavy industries, yet still have significant issues with spreading development across their countries. Again, these countries do not have any innovation advantage in those industries. Here are actual leaders in those industries: Aerospace --> USA, EU, UK, Japan Defense --> USA, EU, China, Israel, Russia Automotive --> USA, EU, Japan, South Korea, and soon to be China ONG --> USA, UK Electronics --> USA, Japan, EU, China, South Korea, Taiwan Energy --> USA, EU, China Gaming --> USA, Japan, China You're confusing having a large industry with leading SUSTAINED innovation. When was the last time you bought a Malaysian brand electronic? When was the last time you drove a Mexican brand car? High income countries produce innovation, hence the ability to move up in the value chain, hence moving above middle income trap.