Not an expert, but my understanding is that the kind of basic science R&D done by the government and academia is the simplest and easiest type of research to do by far. As it was explained to me- anyone can invent new compounds, the really really really hard low-percentage stuff is trialing that those new compounds are A) medically effective in people, and B) actually safe for people and don't have strong side effects.
Also, I believe that if academia actually does invent something novel & useful, they license it out to pharma companies for a % of the profits. Big universities are not shy at all about licensing their IP