Anyone whose research is profitable is free to work for a private entity. The government is a "monopsony" in "buying" unprofitable research the same way it's a

Anyone whose research is profitable is free to work for a private entity. The government is a "monopsony" in "buying" unprofitable research the same way it's a "monopsony" subsidizing any industry that would otherwise fail in a free market. That is not typically how the concept of monopsony is meant.