It was much more pronounced and swift in Germany. Look for instance at what happened to the Mathematics department of the University of Göttingen, this Stack Exchange
post is a good start.
Engineering was encouraged in so far as it was needed for building up the military, but the ideological push for "German Science" meant that many of the scientists that could bring real new developments, not just improvements on what already existed, were kicked out of their positions, and either left or were interned. Note that a few of them ended up un the Manhattan project. In effect, kicking out physicists that worked on "jewish" quantum mechanics and relativistic physics ensured that Germany didn't have the expertise to develop a nuclear bomb.
The US is not quite there yet, but it is catching up quickly.
Regarding whether the effect is reversible. After the war Germany did recover its scientific lead to some extent, but German society as a whole never espoused the kind of anti intellectual attitudes that seem so prevalent in the US. Who knows if a return to sanity in the US government will be enough to reverse the outflow that is starting.
