Which is why water desalination tech is one of their major exports. They mastered the technology out of survival need (Malaysia constantly threatening to cut off water supply) and are exporting it now.
By your standards, most of the world outside the US does not innovate, which makes sense since if they did, the tech would be bought up by a US company anyways
No, not really. There are some unique facets to Singaporean culture that heavily discourage innovation. This isn't the case for most of the rest of the world.