Holdup. Lack of anti-trust enforcement is blamed (among other things) for the end of corporate R&D, but Monopoly breakup is exactly what killed Bell labs! 9 smaller companies weren't going to fund their own lab, and the only reason the lab existed was to find new markets to explore. In fact, nearly all of the examples of successful R&D labs came from corporations that so dominated their industry they put money into f…
Could it be the other way around? That government-supported research in the universities had (at least to some degree) the effect of crowding-out the corporate labs? I mean, if the government is going to foot the bill, then why would I want to spend my own money on it?