The question of how to outcompete others in a given market is not only a concern for firms. At a higher level, governments have long understood that their nations are well served by industries that win in the global marketplace—and have pursued forward-looking industrial policies to help them. Recently I asked a high-level Singapore official how Singapore’s companies would be able to compete in a world of countries whose companies have greater access to low-cost labor (as in China) and cutting-edge innovation (as in the U.S.). His response was to ask me: “Have you seen our toilets at Changi Airport?” I said that I had, and that they were spotless. He nodded: “That’s our competitive advantage.”