Innovation is key to America staying a superpower. But it is missing an essential piece

Former Wyoming Republican Sen. Malcolm Wallop once observed, "I don’t think the only place to fight for freedom is in the halls of Congress." The same can be said of innovation. America’s technological leadership is not secured only in research labs or startup incubators. It is also built in factories, machine shops, testing facilities and supply chains that transform bold ideas into real-world capabilities.

Washington talks constantly about innovation, but too often punishes the very capital investment...