> ...and their investments are going into companies which haven't done anything innovative in decades.

Not all investment sparks innovation - and innovation takes years. I would not expect people investing their life savings to get into NZ to invest in high-risk tech startups, but the investments they make will help the NZ economy all the same.

Investment flow where risk-adjusted returns are highest - that's the nice thing about free markets - you don't have to plan where to put the money - it'll go where it's most demanded.