@ gene
When you take away resources from the private sector to fund whatever socialist/liberal policy you advocate, you're destroying the potential of the highly creative force of the free market to use those resources to provide what society need in the most efficient manner.
Consider the production of raw material, such as concrete or steel. If they were still being produced in the country suffering economic problems, the limitations of private ownership (fiduciary responsibility to meet quarterly targets) will force the companies to lay off large portions of their labor forces. This will further depress the economy, as the laid-off workers no longer have the ability to consume goods and services. The process degenerates via a positive-feedback mechanism.
If the government was to tax the private sector to prop up the depressed steel industry, it would be starving the economy of those resources which are needed in other industries. Specifically, in industries that the market has favored over steel. If steel is failing it means that the economy thinks steel is not as important as other things, economic problems or not.
There is no positive feedback mechanism; there is a negative feedback mechanism. The steel industry will contract to meet the needs of the reduced market. This is a stable process/system.
1) the government funding basic research to develop technologies that are to be commercialized by private companies
Private sector would do it better, and if not, then it means there were more important uses for those funds.
2) the private companies that take those technologies and repackage/market them (for a hefty price) to the people that already paid to have them developed in the first place.
So what you're describing is the government forcing people to pay for research in X so they can reap the rewards of X. But who are you to decide that people need/want X? Better to let them spend money where they see fit. This is also more democratic as you vote with your wallet.
Centrally planning the economy always ends up hurting it.