Layered State Capacity Investment

When facing technological inflection points, states don't distribute resources evenly but concentrate investment strategically on a specific layer of the technology stack based on existing comparative advantages and industry position. Different layers yield distinct payoff cycles, talent requirements, and competitive dynamics. South Korea bet on hardware, Japan on fundamental research, and Taiwan on software and applications—each reflecting a calculated assessment of their own strengths and competitors' vulnerabilities.

Read the daily articles behind this idea on the Chinese edition.