The Ups and Downs of Innovation

Some thoughts on how the US should approach the international side of technology innovation:
Washington is awash in proposals to enhance technological innovation, while at the same time limiting the extent to which that innovation spreads to competitors like Russia and China. As the United States cannot rely on massive economic advantage over its adversaries (China, anyway), technological innovation appears to be the way to maintain U.S. military advantages worldwide. In this context, does it make more sense to focus on offense (enhanced innovation) or defense (protecting that innovation from snoopers)?