[jpeloquin]

Once something has a predictable ROI (can be productized and sold), profit seekers will find a way. The role of publicly funded research is to get ideas that are not immediately profitable to the stage that investors can take over. Publicly funded research also supports investor-funded R&D by educating their future work force.

The provided examples do not clearly support the idea that industry can compensate for a decrease in government-funded basic research. Bell Labs was the product of government action (antitrust enforcement), not a voluntary creation. The others are R&D (product development) organizations, not research organizations. Of those listed, Xerox PARC is the most significant, but from the profit-seeking perspective it's more of a cautionary tale since it primarily benefited Xerox's competitors. And Hinton seems to have received government support; his backpropagation paper at least credits ONR. As I understand it, the overall deep learning story is that basic research, including government-funded research, laid theoretical groundwork that capital investment was later able to scale commercially once video games drove development of the necessary hardware.