[rayiner]

It's not a blurry concept. If you're a company in China, you've got aluminum and milling machines. You can import PCBs from Taiwan and SOCs from Korea. What else do you need to make an iPhone? The intangible stuff that's made in California: PCB layouts, machining processes and specs, CPU/GPU designs, firmware, software, branding. That's all IP, protected by a web of copyright, patent, trademark, trade secret, and contractual rights.

To tie back to the original point by 'colechristensen: the U.S. is rapidly becoming a country where people spend all day working on products the end result of which is intangible. As production of tangible goods becomes commoditized because of robots and 3D printing, it's going to be the production of intangible goods that's going to give countries' competitive advantages in the global marketplace.