There is no private market entity with an incentive to provide research to the public, so in this sense there is no crowding out. Providing research to the public enables the discovery of new products which would otherwise have not been created. Public research is a public good that makes our nation happier, healthier, and wealthier.

That whole discussion is based on the assumption that commercial firms or nonprofits are better in some way than publicly funded research. That is the stupid neoliberal dogma that private and market economy always are better than things that are run by our elected officials. That dogma has to die.