You Know,
You brought up the role of the federal government its role in technological advancement. Now, certainly, the Federal Government's role in creating the space program, had a major impact on inovation. However, there are several avenues of invention where the Federal Government had no role whatsoever.
Thomas Edison: He had more patents than anyone, about 1,300 for an average of one every two weeks during his working career. No government funding involved.
The Wright Brothers: invented the airplane with no government funding. The government backed Langley in 1902 to the tune of a quarter of a million dollars, which would be way up in the millions in todays's dollars. Langley was a total failure.
The Cash Resister: invented by a bar owner over a hundred and twenty years ago. John Patterson bought the rights and founded NCR corp. At one time they sold 95% of all cash resisters in the world market.
John Deere: invented a better plow, and went on to develope a major manufacturer of farm equipement.
Carrier: Invented Air Conditioning near the turn of the century and created a more comfortable world, but not until after the 1970's.
Henry Ford: Invented the modern assembly line, which revolutionized manufacturing. Paid his workers twice the going rate.
Charles Goodyear: Discovered vulcanization of rubber on his kitchen stove.
Ely Witney: Known for the Cotton Gin, invented the concept of interchangable parts, sold it to the governement and helped win the Revolutionary War with his quantum leap in productivity.
These are just a few off the top of my head.