I thought the Most Serene Republic declined because they got squeezed between the Ottoman Empire and Habsburg Dominions, both of whom were able to mobilize sign

I thought the Most Serene Republic declined because they got squeezed between the Ottoman Empire and Habsburg Dominions, both of whom were able to mobilize significantly larger armies and navies. The Habsburgs could do so because of New World silver, and the Ottomans could because they had the world's best bureaucracy, and trade with the East.