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You rarely get technological innovation with government programs, because governments have a near-infinite amount of taxpayers' money to throw at technical problems: hence the 'brute force' approach of the Saturn V, which no commercial entity would have built for a lunar landing.
That is all plain wrong - it is the other way around. Most innovations and boring basic research are done by government research agencies, like NASA. And that not only in the past and that not only because the government was able to throw more money at it.
The reason is plain risk management. When a company, even a large one, attempts a technical innovation, it takes a risk. The innovation might not work, or there are problems which can't be solved in acceptable time. For a company, this means a loss of money, and often the existence. So, companies will be very careful and work in small conservative steps. They will not do basic research, if they can avoid it, because it takes decades from basic research to the final product. Of course the basic research is needed - but it is hard to justify. Especially to shareholders, who think in quarters, instead of decades.
That does not apply to government R&D centers. In this case, the company is the whole economy. And the whole economy shall benefit. Of course, you take market pressure away from the companies and the pace is slower in government research centers. But it is the best practice.
If you would privatize basic research, only the biggest companies could afford it, and only with a small amount of effort. The small companies would be even more punished, despite these being more innovative when it comes to implement basic research. You don't want to destroy these small companies - you want more of them. Today, basic research innovations in government R&D centers are typically marketed by founding spin-off companies. These don't exist for all eternity and are subject to the normal mechanisms of the market - but they form some sort of doping for the economy, by bringing new experts.
