Basicly, I agree with you, muggle, but not all your idea:)
It is the confluence of technology, capital and entrepreneur creativities that results in success of the countries. Technology clusters are the most efficient way,absolutely. America is a good example. So government funding should first go to universities and to corporations and private research centers.
However,we have 2 kinds of people in the world,creative people and the people who exploit creative people for a profit.It is a fact that most value is added by the exploiters, not the creators.
I intended to be one of the latter 2years ago, now I would like to be the former.