Very few people realize that most original scientific research is actually done at universities, and then acquired by private companies when the post docs go to work for them. A lot of professors also start up small research firms funded by these government grants, and then sell the patent rights to big firms, such as pharmaceuticals. The universities get a cut of the action, but it is usually a one shot disbursement. The private firms cough up the money for the patenting. Most research done at pharmaceuticals goes to figuring out how to recycle a drug with an expiring patent (look to Prilosec which became Nexium!) with a so called "novel" use for a new patent (say, from ulcers to GERD). A lot more money is spent on advertising in private firms, something universities and university researchers don't have the moeny for, so their work is largely unrecognized.