Cypress, it is NOT a "theory". As you pointed out, the states already fund research. As does the private sector. There is nothing to suggest that the R&D needs to be done by the government. Bottom line is this: the research has to be done otherwise the pipeline for the corporate world drys up. Do you really think the corporations are going to let that happen? No, they won't... because it would cripple them. Of course they would prefer the government continue the funding, because that is an expense they then do not have to incur... but it doesn't mean they wouldn't fund even more of the basic research if they government were to stop
If the government DOES continue the funding, then the idiots in DC need to make sure the government tax dollars are recouped from the products/services that are developed from the research they funded.
It is an ideological theory. You're asking me to replace a system that has worked so well, that it's made us the unquestioned world leader in science, with a system you promise me will work even better: all science support done at the state and local level.
Please provide me the name of ONE developed country on the planet, that allows all basic and academic scientific research and support to be done ONLY by local and provincial governments, and by private companies.
If you can't give me one single country, that employs your system of scientific support, then indeed all you're giving me is a theory that I have to take your word for it that it will work.
Do you really suggest that we should shut down the National Science Foundation, the National Academy of Sciencies, the Center for Disease Control, Lawrence Livermore, Sandia, Los Almos, and Oak Ridge national labs? If so, I find this proposition beyond radical. It is, in fact, dangerous.