We need to shift away from our dependency on the grant system, and the only way to do that is to make basic research profitable for private industry. I just don't see any other way to do it.

What America really needs isn't more scientists, although that would be nice. What's required is more scientific training for entrepreneurs and business people, so that they can help shepherd projects out of the lab and into products. If having a research lab becomes viewed as a competitive advantage by investors, then getting funding becomes simple.

There are a few major success stories, where companies consistently use advanced research to churn out profitable products - Google and 3M spring immediately to mind. We should be trying to replicate those models.