"One could argue that was more craftsmanship than innovation, but there's a strong connection between making things well and making better things, and China isn't famous for quality goods either."

That's because they weren't taught in our textbooks.

http://en.wikipedia.org/wiki/List_of_Chinese_inventions

http://en.wikipedia.org/wiki/History_of_science_and_technolo...

http://en.wikipedia.org/wiki/Chinoiserie