That's what called innovation I guess. Innovation introduced by public institutions is rather an exception than a rule - e.g. development of the internet infras

That's what called innovation I guess. Innovation introduced by public institutions is rather an exception than a rule - e.g. development of the internet infrastructure was funded publicly at first. What happens normally is that public institutions do fundamental research and businesses innovate. In case of AI businesses seem to be ahead even in fundamental research presently.