One hypothesis is that scale effects in the provision of such factors lead to a Catch 22 for new entrants. Specialized factors are unavailable locally because the industry is to small to justify investments in factor creation. But the local industry is small because of poor local factor conditions. U.S. innnovation-based industries draw on general U.S. strength in basic science. Competitiveness in related industries is mutually reinforcing.
Picky buyers are a blessing in disguise.
Israeli Kosher wine, Japanese preference for extensive plastic packaging and small serving units. Domestic rivalry is the single most important contributor to international competitiveness. The more localized the rivalry, the more intense. And the more intense, the better. Further, it may be that Japan is able to support 9 motor vehicle manufacturers because its competitive advantage gives it ample success in export markets.