The market becomes free when the government enalbes new innovation through easing laws or introducing new regulations that support innovations and developments. For example laws that enabled the internet to be used, which has helped with trade. Read the below article. http://morganisteconomics.blogspot.com/2018/11/using-governmental-powers-to-enable-new.html
Government owned entities and also competitive in the global market. Seems very hard to get it right. Do you have any example?
Yes taxation systems, legal systems and computer systems governments use and sell to other countries. Then you have new industry developments that have to be legitimised by the government like the internet and the trade you get on it. If the government can find a way to cash in on this process they can make money. Read the below article. http://morganisteconomics.blogspot.com/2018/12/generating-income-from-government.html