I think part of the point here, is that the value from that investment should go to the investors, who are (if you buy the 'by the people, for the people' hype) the taxpayers.
Say I'm vulture capitalist Tom, and I pay a few gajillion dollars to developer Gupta to create a product for me. I would be understandably pissed if Gupta turned around and sold that same product to competitor vc Janet. She didn't pay for that dev work, I did.
1. There isn't as much of a difference here as you think. Contractors do turn around and use components developed in public contracts for other consulting projects. Most commonly with other sovereigns, especially when the original contract was with a city or state, but sometimes at the national level as well.
2. With respect to R&D, one big difference is that the government doesn't provide seed funding. They provide grants. If the government wanted equity in research labs, they'd have to pay a lot more. You'll see this in practice if you ever have the extreme displeasure of doing non-useless research in academia. Companies that insist on IP ownership/sharing end up paying much higher premiums for university research contracts. Repealing Bayh-Dole would have no effect on the accessibility of actually useful research; universities and companies would privately fund the useful stuff and leave the government to fund the labs of politically-connected/twitter-famous but otherwise totally useless academics.
(To be clear: we're on the same side here with respect to open access publications.)
Thanks for the well informed response! I had not yet heard of Bayh-Dole and you gave me some good googlin'.
In regards to your explanation in [2], that sucks - I kinda figured that's how things were but I sorta went around academia rather than through it so it's interesting to hear. Any hot ideas about how it could be fixed?
1. replace the current academic funding model with pure fellowships. Each individual, from most junior to most senior, gets their own N year funding.
2. Each has a legal entity under which their IP lives and in which the government takes a small, fair, non-voting share.
3. Completely divorce this funding infrastructure from universities -- if someone wants to use part of their grant to pay for PhD courses/advising, great, but make it so that funding science is not contingent on that institutional apparatus.
Say I'm vulture capitalist Tom, and I pay a few gajillion dollars to developer Gupta to create a product for me. I would be understandably pissed if Gupta turned around and sold that same product to competitor vc Janet. She didn't pay for that dev work, I did.