ARPA (before the "D" was added) funded a lot of the preliminary work you discuss (e.g. Engelbart's work at SRI was all government funded). They also essentially paid for the graduate school of all the folks who later did the early ARPANET work (which Bob Kahn at ARPA also paid for).

And consider that "private sector" labs like SRI and MIT are essentially government research facilities. Education is only 16% of MIT's expenditures (and 14% of revenues) and where do you think those revenues come from? Hint: most of it is not corporate grants.

Through the 70s the boundaries between corporate and government R&D were often fuzzy. True, Bell Labs wasn't "miliary-driven" but there were close formal and informal ties and remember that they were under a tight consent decree up into the 1980s. It wasn't today's "revolving door" -- think of it as a permeable membrane. This was thought to enable corruption and in the wake of the Viet Nam war some separation was put into place. Of course the resulting separation hasn't cleaned things up as expected; in many ways it's worse by shifting out of the technical and into the political domains.

Breaking up AT&T might have been a positive for competition, but it also did a number on Bell Labs.

Did we win the battle but lose the war? It's not like the USA has the world's best telecommunications.

According to [1] (easiest to just download the spreadsheet) the US defense budget for "Research, Development, Test, and Evaluation," adjusted for inflation, peaked in 2008-10 at about $80 billion and has been at a downward slide with 2015 estimated at $63 billion. The entire defense budget took a huge hit with the 2013 sequestration [2] and fell by $9 billion (over 10%) in a single year. NASA's budget in 1965-66 was more than 4% of the federal budget but now it's less than half a percent with its operations torn across dozens of Congressional districts and DARPA has only managed to avoid this bureaucratic creep because its structure is unique among federal agencies.

Combined with privatization that hasn't yielded any clear benefit, pork-barreling that cripple organizations, and general mismanagement, the falling budgets have probably had a very negative impact on US R&D capabilities, offset only slightly by modest increases in NSF and NIH grants for academia.

[1] https://www.gpo.gov/fdsys/search/pagedetails.action?granuleI...

[2] https://en.wikipedia.org/wiki/United_States_fiscal_cliff

"Necessity is the mother of all invention"

When organizations 'need stuff badly' - everything moves much, much faster and things get done.

In the Canadian Army, we could not move our troops around effectively, and 'procurement' for troop transports was taking decades. As soon as the engagement started in Afghanistan, we dropped our 'special needs' and just bought Chinooks from the US, off the shelf. Done. It's not exactly R&D, but it highlights the bureaucracy of such organizations.

I think 'necessity' will drive outcomes far greater than small variations in budget.

Consider this: 'good ideas' should be the result of 'problem analysis' - that is to say, they should be 'solutions' to existing problems. In academia in particular, they're doing a lot of 'pure' research, not so much focused on pragmatic things.

Facebook, for all of it's rubbish, is still a 'very useful thing' to a very large number of people. I don't think the very concept of Facebook lends itself well to academic ideals. Nobody would have considered such a thing a 'viable good idea' from an intellectual perspective. And yet, it really is useful.

The best ideas come from understanding where 'pain points' are and solving them, ergo, an understanding of 'the system to improve' is essential.

Pretty sure DoD helped motivate development of cellular networks in response to lessons learned from Vietnam.

GSM, which took over most of the world, was designed in Europe. It likely was based on earlier research, very probably intersecting with military-funded research.

I wonder if the typical "towers + backbone + terminals" setup is relevant for battlefield communication. I'd expect mesh setups to be more viable and more resilient.

Given the military emphasis on CCC, it's hard to imagine cell networks - even just as theory - not coming from the DOD in some way.

GPS was (is) a lot military. Militaries , first responders and aviation still depend on VHF and in cases HF radio.

Motorola was (is?) a serious player in VHF and HF, so the first cell phone probably wasn't directly DARPA but the overall company had a lot of background with that sort of thing.