The system is broken and needs to be scrapped. The system I have in mind is the one for federal funding of research and development. Make no mistake, it was a great system in its time. Formed in the cauldron of World War II, public funding of research and development delivered an impressive bounty well into the 1970s. Many contemporary technologies, notably electronics and computing, were essentially created by military patronage. And modern medicine is a creature of federal largesse.

But for the past 25 years, special interests have wasted a big share of government monies for innovation. With the exception of biomedical engineering, the government isn't a significant player in any critical field of technology. The reason is simple: To succeed today, innovations must spawn entire industries. This means private-sector sponsorship is crucial to whether a breakthrough turns into a real winner.