&quot;The innovation process always starts with copying and in Shenzhen they are copying systematically at a scale you can scarcely imagine. A student who copies Van Gogh relentlessly may not initially understand how Van Gogh undertook original works of art. After enough copying, that same student may grasp the underlying theories and extend them into new areas.&quot;<p>- China is often criticized for the copying as violating IP, but one could also argue that copying and adding new changes to the copy is the lifeblood of open-source innovation and the nature of decentralized systems as well as human biological evolution.  A great book that explores these ideas is &#x27;The Evolution of Everything&#x27; by Matt Ridley.  I recommend it.<p>&quot;much of the “Efficiency” America has traded for lower cost manufacturing has come at the cost of our ability to bring all of the key pieces together at home.&quot;<p>- There is likely much truth in this statement by Andy Grove and perhaps American companies and leaders should take pause.  Labor cost arbitrage in foreign countries like China and Mexico might be like a balloon mortgage for America where the costs are low upfront for some years, but then the large bill comes later.