If you want to talk about China, sure. From my limited understanding, China was an innovation center in the Tang dynasty. What about the Liao dynasty? I can't say the same. It's safe to say that the Chinese population only increased after a prosperous dynasty, so math-wise, the number of smart people increased too, but not so for innovation. There are obviously other factors at work.
I will not be so bold to claim that I have all the answers, but cultural climate is definitely important, and this is the basis of my comment. Japan has roughly half the population of USA and on par if not superior in communications technology. Why am I not surprised they didn't come out with a superior search engine? Online auctioning? Why am I not surprised that China's largest student social network started as a exact copy of facebook? Adoption of new web technologies is still slow. Because new ideas are still imported.