There must be ways to specify that the companies cannot be subsidiaries, and that creating spinoffs for the purpose of collecting money will result in massive f

There must be ways to specify that the companies cannot be subsidiaries, and that creating spinoffs for the purpose of collecting money will result in massive fines (eg. 100x what was collected). From what you're saying, the problem is not the fundamental idea of having the government fund tech companies, its political corruption inevitably preventing a sound execution of said idea.