The problem is that as you get richer and move up the value chain, you start requiring industry that is more creative, or entirely new creative industries. When creativity is required state backing is horrible at picking winners. And then those industrial champions are now sucking up a lot of the capital within a country.
Eventually the champions become slow and sluggish. But they’re too big to fail; as an extreme example, Samsung’s revenues are 17% of South Korean GDP, to say nothing of their suppliers.