Tangential, since this article is about the US and China. But if the US has dropped the ball, then Europe (or the EU specifically) didn't even bother to go to the game. The only thing we're innovative at is coming up with regulations. And I say this as someone who thinks the US tech sector should be under much heavier regulatory scrutiny.
I'd also not be so quick on the regulation front. Looking at the (lack of) environmental regulation in the US right about now or the absolute astonishing cost of any medical emergency, I'd say they went too far in the other direction.