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Darwin’s theory of evolution suggests that nature changes according to the principle of survival of the fittest. In short, the strong survive, while those who are not fit disappear. The “fittest” refers to those who are best suited to their environment. However, the essence of evolution is not about who survives but about the traits that contribute to survival. It is not the individuals who possess advantageous traits that persist, but rather the traits themselves. Everything we encounter today, whether material or intellectual, exists because it embodies advantageous characteristics that have withstood the test of time.

Eric Beinhocker, author of The Origin of Wealth, a key work on complexity economics, interprets economic evolution in the same way. He argues that today’s economic diversity and complexity have emerged through a continuous process of evolution. The transformation from a hunter-gatherer economy that relied on only a few simple tools to a modern economy producing and distributing over ten billion diverse and complex products is essentially an evolutionary process, much like that of an ecosystem.

While it remains uncertain whether humans evolved from single-celled organisms like amoebas, one thing is clear: all living beings tend to select traits that enhance survival and reproduction. When a beneficial technology or method emerges—whether by chance or intention—it is further developed and refined. If non-human organisms lack the ability to deliberately choose favorable traits, one could simply interpret this process as nature selecting advantageous characteristics. Regardless of how it occurs, beneficial traits become reinforced, replicated, and widely spread over time.

Humans, however, possess a greater ability than other species to actively select advantageous traits. This process is what we call differentiation. In other species, differentiation occurs passively through genetic variation. However, individuals, companies, and nations with superior technologies or knowledge actively pursue differentiation, enabling them to grow rapidly. Yet, such “solo success” rarely lasts long. Once others recognize the effectiveness of a particular differentiation, they quickly adopt and adapt it. People and nations have copied or modified the innovations of leading countries to create their own unique advantages. This is precisely how the Netherlands, Britain, the United States, and Japan became wealthy nations, leading global economic growth.

The Netherlands: The First Nation to Grow Rich Through Commerce

The first country to become wealthy not through force or exploitation but through commerce was the Netherlands in the 1600s. Dutch citizens purchased municipal autonomy from aristocrats and established a republic governed by merchants, ensuring trade rights. They founded the world’s first joint-stock company, the Dutch East India Company, which monopolized half of the world’s trade at the time. They also created the first stock exchange, laying the foundation for the modern capital market.

Britain: Learning from the Netherlands

Britain was the first to emulate the Dutch model. Following the Glorious Revolution of 1688, William of Orange, the Dutch prince and son-in-law of James II, ascended the British throne. Around 30,000 Dutch people, including intellectuals and financiers, moved to Britain. The British soon established their own banking system, modeled after the operations of the Amsterdam Bank, and incorporated Dutch economic practices into their own financial institutions.

The early British Industrial Revolution was also fueled by imitation. The textile industry, which spearheaded Britain’s industrial growth, was inspired by Italian methods. Silk-making techniques originally developed in China were first refined in Italy’s city-states before spreading to Britain. British entrepreneurs such as Thomas and John Lombe even stole factory blueprints from Bologna, Italy—an early example of industrial espionage. By 1717, they had established a silk factory in Derby, marking the beginning of Britain’s textile industry. The subsequent invention of spinning machines sparked the full-scale Industrial Revolution.

The United States: Imitation and Expansion

Like Britain, the United States grew by adopting foreign economic systems and technologies. Since much of the American population consisted of European immigrants, industrial espionage was hardly necessary—new arrivals brought knowledge and skills with them. With the right expertise, America provided an environment ripe for rapid growth.

One of the most famous examples is Samuel Slater, an Englishman who worked under a business partner of Richard Arkwright, the inventor of the water-powered spinning frame. Slater gained hands-on experience in production and management before emigrating to the United States. At the time, Britain strictly prohibited the export of machinery and even forbade skilled workers from traveling abroad to prevent technology leaks. However, Slater memorized the designs and, after arriving in America, worked with local carpenters and machinists to reconstruct the necessary equipment. By December 20, 1790, just over a year after his arrival, the first American textile factory was operational in Rhode Island, marking the beginning of industrialization in the United States. Slater’s success attracted investors, and the young nation quickly rose as a leading industrial power.

Japan: Systematic Imitation

Japan’s economic rise was driven almost entirely by imitation. In 1853, U.S. naval officer Commodore Perry arrived in Japan, demanding that the country open its ports to international trade. Shortly afterward, in 1858, Japan signed trade agreements with the United States, Britain, Russia, the Netherlands, and France, marking the beginning of its modernization.

The Meiji government, established in 1868, sent large delegations to study Western institutions. The most notable was the Iwakura Mission, which included 18 officials, 43 students, and a total of 107 participants. Over the course of nearly two years, the delegation visited the United States, Britain, France, Belgium, the Netherlands, Germany, Russia, Denmark, and other countries, learning about new technologies and systems.

Upon returning home, these delegates implemented sweeping reforms. Politically, Japan adopted Britain’s constitutional monarchy. Economically, it embraced capitalism. Socially and culturally, it pursued modernization. Japan meticulously incorporated the best aspects of various Western nations: engineering from Scotland, naval systems from Britain, military organization from France, medical practices from Germany, agricultural techniques from Britain, and fine arts from Italy.

This systematic approach to imitation allowed Japan to rapidly transform into an industrial power. Over time, it not only mastered these imported technologies but also innovated upon them, eventually emerging as a global economic leader.

The Cycle of Economic Growth

The history of economic development shows that nations rise to wealth by learning from and adapting the successes of others. The Netherlands, Britain, the United States, and Japan all achieved prosperity by studying and implementing foreign innovations. However, as these nations grew, they themselves became the models that others sought to imitate.

The process of differentiation, imitation, and further refinement continues to shape economic evolution. Just as in nature, where traits that enhance survival are selected and replicated, economies thrive by adopting and improving upon the best available strategies. Economic success is not about isolated achievements but about continuous learning, adaptation, and reinvention.

Successful differentiation inevitably becomes a model for others and spreads widely. The concepts of variation, selection, and diffusion in ecosystems directly correspond to active differentiation, selection, and replication in human society. In particular, evolution as applied to human society can be understood as a kind of “learning algorithm” that accumulates knowledge. As Eric Beinhocker puts it, evolution is about “trying many things, observing the results, doing more of what works, and doing less of what doesn’t.”

In reality, our society continuously tests various technologies and designs, observes how they function, adopts the successful ones, and discards the rest. As a result, technologies and businesses that are adopted survive, and if they succeed, they are replicated. Whether the subject is an individual, a company, or a nation, market competition accelerates creative differentiation.

However, not every new attempt leads to success. Some may seem promising at first but ultimately fail. As we will discuss later, the Soviet planned economy was initially considered a success. Similarly, the rise of the internet and IT in the United States enhanced management efficiency and productivity, earning the label of a “New Economy.” Countries around the world sought to imitate this success. However, another pillar of U.S. economic growth—the financial system—eventually revealed its limitations. Efforts to address these issues will continue for some time, and nations that emulate the U.S. financial model must proceed with greater caution.

After World War II ended in 1945, the global economy grew under U.S. leadership. Japan, Europe, and many other countries around the world began imitating the U.S. economy and its corporate models. In fact, during the 1960s, Europe, which had once been a model for the United States, started growing by adopting American institutions and technologies. However, Japan, Europe, and even the U.S. itself have now lost successful and leading models to copy or benchmark.

Some argue that Japan’s economic stagnation is partly due to the disappearance of role models for imitation and benchmarking. In truth, achieving successful differentiation by simply following others has become increasingly difficult. Without innovation, there is no longer a way to differentiate from other companies or nations. We have truly entered an era of endless competition.