
in a globalized world, there is no need for a Western nation with a technology competence. technology needs facilities, developers, engineers, infrastructure, effective government investment (haha...effective government...i made funny), etc.
it also requires institutional acceptance of periodic failure. not all research projects pan out, it's usually a 30% success rate, on average. out of 7 projects, one will be a complete success with possible blockbuster potential (the Internet), two will be viable and potentially (perhaps modestly) useful (Eye-O-Sauron), and four will be stinkers (failed projects that someone with management authority, foresight and integrity, should kill, with a firm hand and a clear conscience).
innovation merely requires a clever idea that one can outsource to India, China, Thailand, Czech Republic, Russia, the Baltics, or similar, to make it as cheaply and profitably as possible, and to sell it to the sponsoring government at 6 to 12 times the reasonable price (as opposed to 2 to 4 times the reasonable price, if the product was produced domestically).
ideas are portable, facilities are not; that's why it's an innovation center.