I am of the view that capitalism doesn't in and of itself create prosperity. Most of the prosperity that exists is a product of technology and mass production; which could exist with or without capitalism.
Things like steam engines, railways, internal combustion engines, roads, bridges, ports, airports, modern medicine, steel, elevators, modern medicine, telecommunications, electricity, mass production and modern farming and so forth could all exist without capitalism. Modern farming which greatly enhanced food production was a product of the green revolution, which itself was lead by government efforts. Many advances in medicine are produced by government agencies and given away for free to private companies to patent. Nuclear power wouldn't exist if not for the Manhattan project. The TGV was itself the product of government Research and Development plus large government investment in infrastructure. So it seems to me that innovation is a product of trying to solve problems and not necessarily a product of trying to make a profit. Mostly capitalism takes these technologies and uses them and makes designs that appeal to consumers. But the actual stuff that enhances our quality of life is mostly technical in nature.
I would also point out that East Asian economies have much less economic freedom than western ones and still produce fairly good outcomes.