While I do not discount the fact that oligopolies can be just fine. I also observe that healthier competition should produce more real innovation.

I don't pretend that innovation does not exist and you bring up a good example. The market for personal technology has been evolving (if you don't count the iphone) and that's a good thing. But I would argue that this is largely because differet firms are beginning to dip their hands into the same pot, not becuase of true competition. but because fo the nature of the devices we carry. We have phones with distinct operating systems which access the internet and drive a healthy app market. Suddenly it's not just apple and miscrosoft in the personal tech business. It's apple and microsoft and google and all the phone companies competing, and all of them competing with ISPs (google fiber, verizon hotspots).

Also, its important to point out that while many American firms are innovating. Innovation cannot be the sole driver of an economy. America is relying very heavily on innovation and skilled labor to fuel its economy and these two areas simply don't have the volume needed to fuel the largest economy in the world.