People and talent are the most location independent resource. If it weren't so then space endeavours would be more proportionally distributed. But what really happens is that all the talent is continuously immigrating to the US.

Besides the economic factor the major hurdle is bureaucracy. If you are a small country you can be sure that all the big guys will want to know what you are going to do, how, when and they would probably even request a means to overhaul the operation if they deem it necessary. And that's just international bureaucracy. Most nation governments will probably never support you in such an endeavour anyway.

I was in NZ in Nov. 2009 when they launched their first "rocket." it was all over the news and papers. A "big" deal. So the day finally arrives and I'm watching the recap and I see the rocket. It was maybe 20 ft tall if that, launched from some sheep grazing area with spectators hanging out here and there. Thoroughly unimpressive. Don't get me wrong NZ is a great place but I just don't see them in the space race.

There is no way something like this is happening in NZ.

We just don't have the money, that's the biggest problem. Sure, we have a few people in NZ that are very wealthy, but they aren't the type to spend it on stuff like this.

Elon Musk is South African

And yet he lives and works in the US. That is(was?) America's big strength, not that Americans are the best or the brightest, but that the best and the brightest from all around the world would choose to come to America to realize their dreams.

Absolutely, but he worked methodically when he was younger to get both himself and his family into the USA.

I doubt it was a struggle, since his mother was American-Canadian. Doesn't diminish his accomplishments in any way though.