Innovation-led growth is no longer the prerogative of high-income countries alone. Middle-income countries are catching up fast, but they still need some crucial ingredients to compete.
There is a common misconception about the success of Silicon Valley; that its success is largely down to the disruptive and rebellious innovators who have made it their playground. A hive of innovative activity it may be, but the truth is that the young and ambitious have congregated around the valley because it is home to universities, research labs, venture capital firms and armies of risk-taking talent, which came because of smart government policies.
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