China calls it “iron and salt” I think. The state makes very large investments in infrastructure and helps build huge globally competitive conglomerates in strategic and bedrock industries. The state builds the “iron.” Then it allows the free market to do the “salt,” because while big state enterprise is good at doing stuff like mass steel production or the three gorges dam it’s horrible at making consumer goods or filling small niches.
(The USSR tried to have the state do the iron and the salt.)
America started doing this in a big way with the railroads. Then came roads, aviation, petroleum, electrification of the entire country, bringing clean water and sanitation to the whole country, huge public works projects, the interstate highway system, the space program, DARPAnet, and so on.
Then we stopped doing this kind of bedrock investment, being sold on the idea that it’s not necessary. Then we lost our lead in all industries except… the ones we still do this in like aerospace.