How about the previous generations of innovations? Railroads, electricity, telephones? I understand those were mostly industry-funded, not government-funded. For a modern day example, see mobile telephony.
In mobile, take Nokia for example: Until the 80s Nokia's major activity was rubber-related products (seriously). That changed when they bought a state-owned telecom company, and that's when Nokia really focused on mobile telephony and made it popular. In other words, the government invested in the technology and removed the risk, enough so a private company could take it to the next level.