Why does the U.S. lead?

Fortune Magazine has been running the list of the 50 most admired companies for about 30 years now. Looking at the list, 8 (16%) were foreign corporations and the other 42 (84%) were American companies, including Google, Facebook, Apple, Southwest Airlines, IBM, and Yum! Brands.

http://money.cnn.com/magazines/fortune/most-admired/

I've argued for awhile that I think northern European-style market socialism works well for those small homogenous nations for overall quality of life. In addition, those countries can even create some decent companies and they produce important medical and other research. However, it seems to me that most--not all, but most--of the most important medical and scientific research, innovation, and top companies and universities are coming out of the United States. I've argued that the world cannot afford to have a United States that is inwardly focused on social welfare, that it's the creative destruction of the U.S. that produces the advanced technology that allows other nations to see improved quality of life without those nations having to substantially contribute to it.

The U.S. isn't really a pure free market nation, and much of its research is through NASA, the U.S. military, military contractors, and public universities and federal grants. So I'm not making a commentary on socialism vs. free market capitalism. I'm just curious if there are thoughts as to why the U.S., despite its objectively inferior public education system, is producing such a disproportionate share of the world's advances. Is it something cultural? Is it the public/private partnership that seems to be the optimum method for advancement? University system? Legal structure?

Interested in thoughts on this.

 
Best Response

I think you hit on some of them. While our K-12 system is lacking, the quality and quantity of our university system is unmatched.

Furthermore, our effective legal system make it a business-friendly environment where companies can be assured of long-term stability. These institutions, coupled with our patent system, make it so one with an idea can thrive. We also were pioneers in many technologies (internet, PCs, software) that allowed for so many companies to be born. There is also synergy from being the world's hegemonic political, military, and entertainment leader.

Furthermore, it's a numbers game. We're sitting close to 350 million residents. Denmark is at 5.6 million. Norway? 5 million. Sweden? 9 and some change. Our GDP is twice that of China, who is second in the world.

 

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