
As for the private/public split in research dollars, it is absolutely true that the growth in buy quick/sell quick investors in the market in the last coupla decades has forced even such companies famous for basic research like AT&T to divest themselves of such entities as Bell Labs' Advanced Research department. Doing basic research paid off big time for AT&T, but the returns are further down the road than the typical invester of today is willing to wait.
Some government funding seems needed in the arena of fundamental (as opposed to applied) research. It has gotten too expensive for the foundations that used to fund a good chunk of it.
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