How can U.S. stay on top of the world? - Opinion - USATODAY.com

We’re no longer the economic center of the universe, as the global landscape has shifted to former Third World countries. What to do? Remain competitive through innovation, not protectionism.

By Antoine van Agtmael

South Korean carmaker Hyundai recently had to deny newspaper reports that it is a leading candidate to take over Chrysler. True or not, it already has a $1.1 billion plant in Alabama and now beats Toyota in performance quality, according to the J.D. Power survey. Less than five years ago it was the joke of a Jay Leno show.

(Illustration by Web Bryant, USA TODAY)

Hyundai is just one of the many profitable firms in emerging markets that produce just about everything consumers consume. Within hours of Apple CEO Steve Jobs' recent unveiling of the stylish new iPhone, shares in Taiwanese electronics giant Hon Hai Precision Industry shot up. Founded in 1974 as a marginal manufacturer of TV-set-tuning knobs, Hon Hai today produces PCs for Hewlett-Packard and Dell, PlayStation game consoles for Sony, motherboards for Intel, cellphone handsets for Nokia and Motorola, and now Apple's new iPhone. Other examples can be found everywhere.

While our attention was focused on the 'new economy' a few years ago, 'new economies' quietly"