This was a great blog post by a conservative, pro-free-market individual who worked in the NIH, likes Pharma, but nonetheless argues that government sponsored medical research is really at the core of most basic research and discoveries for new diseases
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If this would be impossible, abolish it.
2. I agree about NIH and NSF--they basically are run on models of committees of experts that help direct resources in exactly the competitive manner you describe. Thus, they allow the efficiences of private industry to work towards a common good by helping them achieve goals that, by themselves, the market would never push them to achieve.
Together--it would be like getting back an earlier age of liberal government--one that worked during WW2 for the most part.
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