"We've led the world in technology not because the Americans are technologists. We've just been a magnet for the best in the world, and now if our immigration policy tries to systematically turn those immigrants [away], and they can't come here -- or they don't come here -- I really worry what will become of us."

-- Clayton Christensen, Harvard Business School professor and author of The Innovator's Dilemma

Experts like Christensen imply that America is being outinnovated by other countries. Look no further than Japan's Toyota, Canon, and Sony, which stole markets from American companies General Motors, Xerox, and RCA. Now Christensen says China and India are racing upmarket as fast as possible.

Continuing tight credit conditions for small businesses and startups only bolster those worries. But the Small Business Administration is trying to ensure that America maintains its competitive advantage in the world. I sat down with the SBA's administrator, Karen Mills, to chat about the future of innovation in America and the sectors that will drive growth. Watch the video here:

This is part 2 of my conversation with Karen Mills. For Mills' take on the health of small business in America, click here.

Fool contributor Jennifer Schonberger does not own shares of any of the companies mentioned in this article. You can follow her on Twitter. The Motley Fool has a disclosure policy.