In the long-established American ecosystem of scientific advancement, fundamental research—not geared toward immediate application—has mostly been conducted at universities with federal funding. The commercial sector, on the other hand, has been more likely to fund more applied research around ideas closer to market, including backing university studies in promising areas of computer science and medicine.

Over time, industry has increasingly built its own innovations on top of basic, federally funded research, says Lee Fleming, professor at the University of California, Berkeley’s Haas School of Business. One prominent recent example is artificial intelligence, he says, which received federal funding for decades before exploding into commercialization in recent years.

Earlier this year,

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