Economies are successful when they stay ahead of the game, rising up the ladder of sophistication.
The US had lots of manufacturing plants, then it allowed others to do the manufacturing and concentrated on higher-level activities, such as computerized equipment, for which programmers were needed, but then it became more lucrative to outsource that and concentrate on the higher-level, like conceiving of new companies and managing the programmers.
Japan post-WWII specialized in making cheap electrical goods, "made in Japan" was a pejorative, but then it moved up the ladder until nowadays it is synonymous with high quality sophisticated electronics. South Korea followed in its footsteps.
Recently China did so as well, having moved up from a starving country, to "the world's sweatshop", but then recently has started becoming cutting-edge.
Israel used to excel at specialized manual labor - it exported oranges and was a major player in polishing diamonds, and then became more sophisticated and grew flowers in hothouses and exported them to Europe. Then instead of growing flowers or oranges themselves, Israel developed and sold irrigation technologies to those who did the growing. And then they developed higher technologies and now are known as "the start-up nation".
But what is the next level? Possibly:
- Opening up accelerators for entrepreneurs from other countries who will initiate start-ups, instead of creating start-ups;
- Teaching how to innovate instead of innovating? Can this be done in a way which makes it more prestigious and lucrative than creating the start-ups themselves;
- Creating software and computer-guided machinery to help countries manage entire industries.
I believe that there are other possibilities too. For example:
- Finding ways to monetize transition to a healthy lifestyle, and to encourage spending in ways that are physical and metal health-positive (ie instead of urging consumers to be patriotic by spending money on a larger TV screen, and buying the unnecessary or even harmful items advertised on it).
- Possibly, finding a way to monetize social gains, so that a region or population which is transformed from unemployed alcohol-abusers to income-tax paying productive citizens can funnel some of what was saved and some of what was gained to the private enterprises which effectuated the transition. And the same for health care, education, elderly-care etc.
- Using clever algorithms and data-mining and baited intellect-hooks to discover hidden talent in places which are too underdeveloped to allow such intellects to flourish, and then nourishing them into productive treasures.
- Using algorithms and big data to find out what a nation should specialize in, what their particular gift is, and thereby finding ways for them to achieve their potential.
- Finding ways to match idea-people to the right business-teams.
- Perhaps even finding out how to turn non-profits dependent on grants and charity into self-maintaining profitable enterprises which do a lot of good even though they are profitable.
And eventually:
- Devising algorithms which will detect which business ideas are good, can be made profitable, and which cannot, shortening the process whereby 9 out of 10 startups fail, and concentrating the flow of time and capital into the ones which will succeed.
- Devising solid business plans for companies which have a good idea but cannot figure out how to make a profit on them.
Creative and compassionate capitalism (C3), hopefully the wave of the future.