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We have too high a population to just count on innovation, people need job to carry on a decent life.Japan, south korea, Germany , etc don't have higher density of natural resources. We are not an innovation based societies like them period just a copy and paste like Chinese and there is a reason for it and by innovation i mean genuine real breakthrough which changes course of human society.
Japan, European countries had colonies and Industries since the 1800s way before us. South Korea is the only one I can agree upon than again they received a lot of favoritism from USA.
U gotta give urself time to build, rome was not built in 1 day.
For innovation to occur there must be promotion from the state this can't happen in gov sector because there is no work culture, no saying that Pvt sector is leading the way but there are definitely more promising development on this side.