This is virtually identical to what happens in the life sciences, like plant and animal research.

The really basic research is done at universities not business.  Business has leveraged decades of basic research into products but is now running out of areas to capitalize on.  No one really wants to do basic R&D because of cost and timelines.  My impression is that policy makers think that giving tax breaks to big multinationals and drug companies will spur the R in R&D.  My experience is that it only cranks up the D side and fosters lots of mergers to leverage other peoples intellectual property that took decades to build.  

We need dollars going to people to just do Research without any expected product in 2 years or less.  That knowledge often leads to new products, but only after 15-20 years of other complimentary work getting done.  Then the area is mature and a flurry of products can be made.  It appears no one is patient enough for research to pay off anymore.