>>the idea that all the most innovative people only exist in the United States (or even that people in the US are on average more innovative than others) is ridiculous
Its not ridiculous at all. For what its worth, it happens to be true at this point in time. Whether it will continue to hold given the poor fiscal health of the US is the crux of the debate.
When I look at my classmates and my peer group, the ones who stayed back in India have (unfortunately) gone absolutely nowhere. The ones who migrated to the USA have gotten multiple graduate degrees in STEM, work at some of the most innovative companies, contribute to technical literature, teach,...
I spoke to a former classmate who came to the US, got his Masters alongwith me and went back home.
"Dude, congratulations, your resume says you are now a Chief Scientist! So when did you complete your PhD. ? What did you study ? More CS ? Math ?"
The guy goes "What are you talking about ? I never studied anything beyond that Masters, and most of that I've forgotten. In India, you just hang around for a couple of years in technology, they make you a scientist. Hang around as a scientist for a couple more years, you are a chief scientist!"
So that's how that goes. I used to wonder when I saw these outsourcing bodyshops ( Infosys, Wipro, TCS etc ) having several Chief Scientists on their staff, as to what sort of "science" goes on at an outsourcing outfit. Now I don't.
In India, its all about 3 things: "ghar, gaadi, biwi". Google that phrase and you will understand the microcosm that is India. When the entire culture of a nation is built around the acquisition of a "house, automobile, wife", why would such a nation breed innovative entrepreneurs at the same rate as the US ? And that's preciely what you'll see if you go shopping for talent in India. The truly talented tech geniuses will give you their right arm for an F1/H1B visa to the USA, and the rest are too busy chasing "ghar, gaadi, biwi". Yes, there are a few exceptions, but that's what they are - exceptions.