In the 1960s you could have made the same argument about cultural collapse in China, India, or South Korea, yet look at them today.
And clearly, it's not Islam related based on Turkey's (automotive and aerospace) and Malaysia's (semiconductors and microelectronics) relatively decent R&D capacity despite being upper middle income countries neighboring R&D laggard non-Muslim countries (Greece and Thailand respectively), or even Iran and their fairly robust STEM R&D base (looking at you Shiraz University of Technology).
My hunch is probably moreso institutional, or lack thereof.
The Arab world was basically in a state of managed chaos from the mid-19th century to present due to colonialism (both Western European and Ottoman), the World Wars, and the subsequent decolonization movement, and institutions weren't able to be sustained.
Those that did thrive (Cairo University, Baghdad University, Damascus University, American University of Beirut) in the early to mid 20th century were purged - either by the Baathists or due to the Lebanese Civil War.