More funding is going to consumer (soft) applications versus (hard) technology products. Who is making the product technologies today? Multi-Nationals like GE are taking the lead, see "GE Makes India a Lab for Global Markets" here from Wharton.
Are the breakthroughs like the printer and the personal computer no longer the domain of Silicon Valley?
From the Wall Street Journal "For Silicon Valley Start-Ups, Funding Boom Is Lopsided" here.