I think your assumption about how the government funds programs is off. Congress (mainly lawyers and non-experts) contract with experts (panels, federal employees, etc.) to write policy and fund projects. The stronger that transmission mechanism is, the better. I'd say that the governments investments in early stage VC stuff is probably comparable to private VCs. Also, I'd say in general, governments have been pretty decent stewards of capital. Just look at Calpers and the robustness of government pensions. I think we are still in early in the "cycle" for how capital is managed, but think that this trend is improving. and DUDE -- the gov funding GPS and Internet is EXACTLY why it is good for the government to fund projects! You pretty much made the argument for government VC and industry investment lol. The government funds public goods because it is not making decisions based upon a profit motive, but based upon utility. Alternatively, you can see the government as being the investor with a 100+ year time horizon. What is the delta of tax revenue thanks to investments in infra like highways and roads? Etc.
And I meant to make that argument - but the distinction is that you argue for early funding and another poster is arguing for the government to take an ongoing stake. That’s an important distinction and I’m arguing that the ongoing stake model is an SOE and that is problematic.