The Soviet space program is an example of an economically unsustainable program kept alive by money being pumped in from external sources (govt tax revenue). Capital is most certainly required to make these programs work in order to purchase the fuel, basic materials, etc.

Open source is a good example of where innovation can work because all it takes is people donating their time. It doesn't require $15 million of rocket fuel and a $100 million rocket to make a commit to Linux.

Government-backed research works well when there is no immediate commercially useful aspect (e.g. basic sciences, space exploration), but it's incredibly bloated and slow compared to business R&D that has competition and motivation to make discoveries.

Where are the socialist programs producing processors competitive with Intel/AMD? Where is the socialist program producing an electric car people want more than Teslas?