The power of ideology is so great it easily creates a distorted perception of facts. Where money is spent is crucial, not the size of the public sector. The Internet, the touch screen, semi-conductors and the GPS were developed with state risk capital. Tax havens cause revenue shortfalls.
Free Market shorts on Nanotech--Government to the Rescue (tags)
The U.S. government is easily the nation's largest investor in nanotechnology, with The House of Representatives passing a bill to invest $2.4 billion in the next three years. "Private equity sources can't bridge the gap from the lab to products"