> Western academia has always been more about advancing knowledge, which IMO is academia's mission.
You can advance knowledge in ways that are aligned with the nation's strategic needs. That would imply the career path of researchers would be oriented towards industry instead of pie in the sky projects.
I fail to see why universities should align on their country's strategic interests. Universities are not political nor military entities. Additionally, pie in the sky projects is what's needed to advance science, which is very distinct from advancing technology (industry).