Earlier quoted context omitted.
A couple of points. Whenever you put the word 'government' and 'innovation' into the same sentence, you need to check your working. Government is, by and large, terrible at technical innovation. And innovation by mandate will, predictable, be a non-starter. That said, there are areas where it is appropriate - see my earlier examples (tranit bus feeds are another one) - where the relevant government agency has found a…
Perhaps I'm misinterpreting your use of the term technical innovation, but weren't the Manhattan Project, NASA and many military projects innovation by mandate that were extremely successful?
And even then: the progress that SpaceX has made in the last few years is an almost text-book proof of my point. NASA provided SpaceX with a wealth of knowledge and experience that has been very poorly utilized (dollar for dollar) over the last 20 years. Within a very short time-frame we've suddenly seen innovation in the space sector like we haven't seen since the Apollo programme.
As for the military sector - given that maintaining a monopoly over the application of military force is (fundamentally) the primary function of government, it's not surprising that this is the one area of government that has understood it's place for a very long time: issuing contracts with stated operational aims and leaving the private sector to provide the innovation. Yes, the system is flawed - the F-35 programme is a bit of a disaster - but even then it can be at least partially blamed on government agencies interfering with the procurement process.