And the research, presumably.
> First, many research universities are private, so aren't funded by the state.
They don't get funding from the state, even if they are private entities? Are you absolutely sure?
> Second, most research projects are funded by grants not from the state - it comes from industry and places like that.
Again: 100% sure, your "most" applies?
> Third, even if they are funding it, why isn't funding the creation of companies (employers!) a good thing for the state?
It might be, it might not be. The company may generate lots of taxes, the company also may just move to a tax haven and tell society to screw off.