China’s state-guided system excels at industrialising innovation. Relentless competition, manufacturing scale, supply-chain depth and affordability allow technologies to diffuse rapidly across the economy, creating world-class industrial ecosystems and globally competitive products.
Over the past few weeks, we have explored what we believe are two dominant models of capitalism in the world today.
America’s market-driven system excels at monetising innovation. Deep capital markets, strong shareholder protection, intellectual property rights and winner-takes-most economics allow successful companies to convert innovation into extraordinary profits and shareholder returns.
