[JDiculous]

Australia is doing pretty damn well. The pay there is fantastic, and it's one of the few countries where you can work any honest job and still get paid well (I can attest that this is not the case in the U.S.). Many foreigners flock there in large part for this reason. 1 month+ vacation, strong healthcare system, good benefits, etc. And remember their population is only 24.6 million.

I'd say having a higher standard of living is more important than being the "innovation engine of the world", however arbitrarily defined that is.