Of course private companies aren't innovating or doing research. There's no savings in our current society. It's all eaten up by taxation and zero interest rate loans from The Federal Reserve. Combine that with all universities being publicly-subsidized and there is no other alternative. This isn't nature. It's the nature of the problem with our society.
Research is one of the big industries in the US and UK. Where do you live? How do companies get by without any innovation in your country?
I was mainly referring to the lack of innovation. It's happening but very gradually. The fact is we are in a depression since there are no savings to act on besides with Apple of course. Shine on, Mr. Jobs.
The US is awash in saving! http://www.nytimes.com/2011/10/25/business/banks-flooded-with-cash-they-cant-profitably-use.html?ref=business&src=me&pagewanted=print
The US is in a depression because people are scared to borrow. Rightly so in my opinion but that's another days story.