Most past civilizations didn't fail due to a single resource collapse. Also, most of them didn't have free-markets oriented around innovation.
Innovation can eventually be produced, but it's an accidental sub-product. Innovation it's not the metric that markets are optimizing.
Sure, markets pick up innovations when they are profitable. But not otherwise, and I'm doubtful if the market economy is actually a net positive for innovation. What is innovation if it means finding another way to sell you stuff you don't need anyway.