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FWIW, the U.S. got its start as a major industrial power by a major act of industrial espionage. (Francis Cabot Lowell went over to England for two years, worked in the textile mills, memorized all the details of their workings, and opened the first textile mill in the U.S. in Waltham, MA.) Large-scale American industrial espionage continued throughout the rest of the 19th century. American goods had the same reputation for being cheap knock-offs of British innovations that Chinese goods do now.

I don't think this has anything to do with the respective cultures of either nations. Remember that China has a long culture of valuing knowledge for its own sake. Rather, it's rational for the firm that's behind to copy the firm that's ahead. The firm that is ahead has no such option available to it. That's also why it's never the best students that cheat off their peers - they have nobody to cheat from. China and the U.S. (in both periods of history) are just responding to the incentives available, as ambitious actors in their own right.



I dispute the assertion that American goods were considered cheap knock-offs by the end of the 19th century. By the mid 19th century, the "American Style" of assembly-line manufacturing with interchangeable parts was considered to be the most efficient form of manufacturing [1] and was thereafter adopted in Britain and the rest of Europe. This method was derived from various aspects of the English system and was not invented in America, though it was first widely adopted there. Though there are well-known examples of industrial espionage, American innovation in manufacturing can be attributed a combination of vast natural resources, dynamic social structure, and widespread generalist education (as opposed to the apprenticeship system of Britain at the time) [2].

[1] http://en.wikipedia.org/wiki/American_system_of_manufacturin... (the article is sufficiently cited to support the claim)

[2] McPherson, James M. (2003). Battle Cry of Freedom: The Civil War Era. Oxford University Press. ISBN 978-0-19-503863-7.


I really really recommend this book to everyone in this thread: http://www.amazon.com/Made-USA-Retreat-American-Manufacturin...




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