Anyways, we have the Internet, I'm not sure it matters _where_ innovations are created anymore. It certainly does not seem to be stopping China on any level.
America is going to have to give up the "World Police" (a.k.a. The Military Industrial Complex) badge and move into it's relative political middle age with a little more care and aplomb than the last 6 decades have allowed for. The haze of WW2 is far behind us now.