well, i don't know whether this is true. I am quite frustrated with germany, because our scattered expertise and resources are just not that competitive in this area. We were unable to retain our top people (Schmidhuber, Hochreiter, etc.), don't invest enough into our universities and our AI-initiative is also just not enough. A serious comparison to the top countries (United States, more interesting: Canada) does not end well.
If the TUM (Technical University of Munich) would have been sucessfull in retaining the top talents they developed, they would count Schmidhuber, Hochreiter, Schaal, etc. to their faculty and be competitive with top institutions. But they didn't and it's a symptom of a larger lack of investment. My university (KIT) also developed some pretty sucessfull researchers in "AI", but they left (for example to Carnegie Mellon, where there's a lot cooperation, especially in machine learning). Prof. Alex Waibel made a pretty important contribution to ConvNets, one could argue they developed out of his time-delay NNs. But, although he's still a Prof at KIT, he's not really that present in karlsruhe.
Just compare the total numbers of papers on NeurIPS of germany to other countries. We are getting obliterated.
I still think that a "reasonably" distributed approach is best for germany (and probably for finnland), but we have to get our shit together! I don't think this is due to our more distributed approach.
It's all pretty frustrating, i think there's a lot of wasted potential here.