In my opinion, the state should be more involved in this matter. Thus, the benefits obtained from an investigation may have a greater social impact. It is true that the private sector benefits good quality research, but almost always does it with profit motives, even when there are honorable exceptions, such as Genzyme.
We must remember the international projects also, it is a source of investment for the science development and it is not private or state origin, so the question is not easy and in my opinion you are simpliying this matter, it is more complex...