MITs MO is to try to create a breakthrough tech and rapidly spin off startups from the tech. But I think the main barrier is that to operationalize hardware requires massive capital investment upfront for testing and then regulatory approval, this is mostly not possible for VC. So the students/profs who make the breakthrough do the next best thing: Patent and then sell it to a company that has the capital to do it.

But someone can correct me if I am wrong about this.