I think you are correct, that it was hard to connect the dots regarding the discussion on R&D.  I think the disconnect boils down to two things, first from the summary on page 29:

A scientific powerhouse
Although its R&D and other knowledge-intensive investments represent a lesser share
of its GDP than in the USA or Japan

As this statement suggests, I think the level of R&D spending is lower in Europe.  I have seen that in other sources, as well as this one.  So a migration of R&D talent out of Europe would make sense.  But second, in healthcare anyway (biotech, pharma, and medical devices) the US has a business approach that supports development of new ideas, backing them with money from private investment and venture capital, starting companies to further develop those ideas, take them through clinical trials and hopefully approval, and then launch the products that make it into the market place.  It's a very valued and supported concept, and one where if successful, the financial payoffs are significant.  I imagine there are pockets of activity of this in Europe, but I doubt it would compare to the US.  This would lead to a tendency to attract the cream of the R&D crop with good new ideas out of Europe, imho.  And I've seen a number of examples of this first hand.

I think there are many areas where the US can learn from Europe, but this is one where the reverse is probably true.