alt Hacker NewsDon't forget the compounding effect. Say, one country (or city or community) decides to invest their efforts into area X (e.g. clock making in Switzerland). They do it and become better and better. As long as they keep doing that they can become #1 in the world. Regardless of any reasons "why them".
There's no reason Netherlands are better at chip lithography except that they're doing it (Dutch agriculture success can be attributed to good soils/climate/geolocation, but not chips). There's no reason Hollywood is better at filmmaking. Kinda chaos theory -- small changes to initial state leads to huge changes in the later outcomes.
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The Hollywood case has a quirk that is relevent to the extensional content of HN:
West coast filmmakng started in the Bay Area (at the time the largest conurbation in the west) but moved south because of the year 'round weather.
But why the west? Because Edison controlled the filmmaking patents and demanded not just royalties but script oversight as well. By moving west, they could ignore the patents because they were simply too hard to enforce from such a long distance.
So ironically, given how things worked out, IP piracy is at the root of Hollywood.
Also, how it stops to be. Specializations like that get disrupted if there's an easier way to make money (aka Resource curse, aka Dutch Disease [1]).
Same thing with Israel -- if they had some easier way to make moneys they would go for it. But constant demand from their defense kept if afloat.
Regarding the Netherlands, it doesn't hurt that TSMC happened to be cofounded by the same Dutch company that spun out ASML
I would like to give a real world example of this too.
If you want to do something artistic or start a business based around Art, Montreal is perfect for it, for the very same reason above.
Initially the govt invested in the arts to preserve French culture, which resulted in a lot of art infrastructure being made, cheap ateliers, fabric suppliers, paint suppliers, &c. Which attracted a lot of artists, which then increases the demand for the art infrastructure, which makes the city easy to make art in.
It makes it stupid easy to make stuff and find the skilled artisans you need to make it. Much easier than any other Canadian city I've lived in.