Advanced economies like the US have had a head start on developing advanced industries, making it difficult for others to catch up. Europe, despite being primarily comprised of already advanced economies, lacks the innovative global companies compared to the US and even the new players coming from Asia, with exceptions like Germany and France, leading to being underrepresented in global corporations and correlating with GDP per capita.
What sets the US apart is its better capital, which enables businesses to invest more in their workers, thanks to the USA being an attractive destination for investors due to its strong legal system, culture of innovation, and position as the world’s Reserve currency.
