It wasn't a lack of raw brainpower or wealth; it was a structural and ideological failure of resource allocation.
The USSR and the Iron Curtain bloc had a massive population and world-class scientific talent. The problem was that the Soviet system viewed independent thought and individuality as a threat, actively sabotaging its own geniuses:
Persecution of Top Minds: Sergei Korolev, the literal architect of the Soviet space program, was sent to the Gulag, where he lost his teeth to scurvy and survived a broken jaw before being pulled out to work in a sharashka (a prison lab). Andrei Sakharov, the father of the Soviet hydrogen bomb, was relentlessly persecuted and exiled later in life for pointing out systemic flaws.
Ideology Over Reality: The state actively banned the teaching of modern genetics for decades because Trofim Lysenko’s fraudulent agricultural theories were deemed "more communist."
When you look at where the USSR did choose to spend its massive resources, it wasn't on pragmatic, cost-saving solutions. It was on hyper-expensive, top-down military prestige projects—many of which the West mathematically evaluated and discarded as impractical.
They built the RBMK reactors (like the one at Chernobyl) specifically because the dual-use design allowed them to generate civilian electricity while simultaneously harvesting plutonium for weapons, creating a fundamentally unstable system. They spent fortunes building the "Caspian Sea Monster" (a giant ground-effect vehicle) and the Tsar Bomba.
The tragedy of the Soviet computer industry wasn't a lack of money or smart people. It was that any "von Neumann" or "Seymour Cray" born in the USSR who asked the wrong questions or challenged a party bureaucrat's stupid idea was far more likely to end up in a labor camp than heading an independent tech company.
Those born in countries like Poland, Hungary, Bulgaria or Czechoslovakia were usually "asked" to leave country and they were working for the West ;-)