Ideation, innovation and manufacturing

Is there a relationship between ideation and manufacturing, and the next innovations? For example, the ideas behind the iPad and iPhone were generated and developed in the USA but the products are made by the engineers and factory workers in Asia. As people in Asia gain more knowledge, skill and experience will they also increasingly produce the next innovations? In other words, will shifts in manufacturing to the East lead to less innovation of physical products in the West? Moreover, if new generations of Western designers ideate without having the experience or means of producing things what are the ideation outcomes? Virtual solutions? Or, all talk and no industry?