Innovation does just happen, but only under circumstances that need it. People support it because it makes their lives easier. If it doesn't do that then honestly who cares? Don't confuse innovation in general with how many startups the country has.
There has to be some pull. If people are conditioned to be happy with say UBI + Netflix and conditioned to think that you should have a small impact on the planet (little consumption) and your daily needs met (food, shelter) innovation will go down in a generation or so.
[to answer weakfish who appears "dead": no it's not wrong to revert to a subsistence existence, but it has trade-offs. Just be aware of the trade-offs.]