Individuals (scientists, doctors, lab technicians, inventors) can do the innovating, can do the research. They just need to be paid and given space and tools and time to do it in. Enter government. Government does not need to innovate, just write checks.
In principal, you are correct, but you are neglecting one very important point: the government is not a nebulous entity with an endless supply of money. Therefore, the individuals that comprise the government must identify (either directly, or by selecting individuals who are most qualified in a given area of expertise to serve as proxies) the scientists whose ideas, proposals, past productivity, and requests for facilities most warrant funding.
Separating the wheat from the chaff is a non-trivial exercise. It may not be be direct innovation, but I would argue that it is every bit as challenging.
In principal, you are correct, but you are neglecting one very important point: the government is not a nebulous entity with an endless supply of money. Therefore, the individuals that comprise the government must identify (either directly, or by selecting individuals who are most qualified in a given area of expertise to serve as proxies) the scientists whose ideas, proposals, past productivity, and requests for facilities most warrant funding.
Separating the wheat from the chaff is a non-trivial exercise. It may not be be direct innovation, but I would argue that it is every bit as challenging.