We've seen how non-profit-driven research works in Soviet countries: their spies were busy stealing tech from the west, while the country was falling further and further behind.

Maybe there are many reasons to do research and people will often learn just for the sake of learning. But to turn that research into an actual useful, available product on the shelf - you need a profit motivation. Otherwise nobody will do the unsexy work and then there will not be money and nice condition for pure research either.