Thiel argues that innovation has stagnated in the last half a century, citing examples of how industries like energy, aerospace, automotive or biotech haven't had any major breakthroughs during this period.
Andy Kessler on the other hand, states that innovation on the computers' and digital fronts (citing Moore's Law amongst other things) is not something you should easily discard as non-innovative. He goes back to the discovery of oil in Philadelphia during the 19th century and the creation of a massive industry in the following decades.