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That's because there's a step missing in your model, which goes like this:

Idea --> Engineering/Design --> CAD File --> Prototype

And the reason it doesn't get done that well in places like India and China at the moment is that it's not easy or quick to create a sustainable engineering sector that can reliably take ideas to a working prototype stage.

China, and to a lesser extent India, will slowly develop this over the next 10-15 years I think, since Western companies are gifting them a huge amount of engineering knowledge in exchange for cheap engineering, or so-called High Value Engineering (HVE), but there are a few hurdles even so:

1. Education. 2. Cultural issues around problem solving.



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