I agree for most of the projects which currently dont have any path to commercialization govt should step in and invest. But for others private sector should take the lead especially in software industry. The companies that you pointed out google and microsoft were not supported by govt initially to start with. But infosys, wipro, TCS have been there for a quite a long period of time, its only that they are still stuck to the shitty service sector instead of moving to product domain or take on challenging projects. They make enough money that can be plowed into R&D , they are simply becoming another ambani in software industry.Indian pvt players are minions compares to Global players like Apple, Google,Microsoft , IBM and LM,Boeing, Northrop Grumen, Dassault etc who actually do path breaking research and invent things and are almost 100 years old and have access to huge funds (both internal and Govt grants)
Its foolish to expect Indian newcomers to invest in such resource intensive path breaking projects.
Its mostly done by Govt funded labs like DARPA and NASA even in USA
By the way intel and TCS were both founded in 1968, not to deny that intel got some serious backing from US govt but post liberalization TCS should have grown to be more innovative or path breaking company that simply has not happened.
Look every other sector you need strength in hardware but software industry is one where we could have done better bcos it is more of a human resource intensive. Our ability to create, collaborate , co-ordinate or lead to build orgs/institutions or initiatives is still a big suspect. We will simply remain a mid level country without realizing our potential.