In any industry where there are powerful incumbents and extremely high startup capital costs, the startups often need to be given outside assistance (i.e. government subsidy in the form of a loan) to have a chance of competing with their innovations. This is not ideal, but it is a necessary evil.
Furthermore, the incumbents had plenty of chance to innovate. What many of them did instead was to go bankrupt and ask for bailouts. Tell me: would you trust these companies with another $500 million of taxpayer money? It's like giving more stipend to a child who has proven irresponsible with money.