At what point are we going to stop with this Nationalism bullshit and realize that research, regardless of who pays for it, is good for all of mankind.
As far as I can see there is always going to be boundaries be it cultural, tribal or artificial. Tendency is just there. Look at SF for instance where there was one neighborhood that rebranded itself (The East cut).
Humans lived in city-states for most of our history, I see no reason why we shouldn't expect the city-state to be resurgent in the current century.