New Delhi, Oct. 19 -- In the 1970s, a small, low-cost manufacturing economy made an unusual choice; it would invest in semiconductors, one of the most complex and capital-intensive technologies of its time. Private industry hesitated in the face of immense risk, but the government stepped in as both investor and enabler, building the capabilities required to seed an entirely new sector.

That country was Taiwan. Today, it produces nearly 90% of the world's most advanced chips and is on track to bring in about $300 billion in revenue this year.

It is a common misconception that America's technological leadership is purely the product of private enterprise. In reality, many of the foundational innovations underpinning its dominance, from s...