But somehow China a country with even more Xenophobia and nationalism is catching up to us. And the U.S. used to have more Xenophobia and nationalism in the past and was also substantially more innovative.
Maybe the real problem is that the U.S. (all the way up to the top) has become anti-intellectual. We have completely dumbed down our culture so that children today want to be basketball players instead of astronauts. Our schools and government explicitly oppose meritocracy. There is just too much money in junk media and junk education that its never going to be fixed and instead we have to bring in more immigrants.