I'm not sure innovation is really impacted when restricting the private sector. Traditionally, innovation happens in public (e.g, universities) or military spaces.
This is extremely dubious. There are hundreds (thousands?) of examples of innovation happening in the private sector - I could name the blue LED off the top of my head, and got personal computers, search engines, smartphones, cloud computing, and integrated circuits with less than a minute of searching.
This is extremely dubious. There are hundreds (thousands?) of examples of innovation happening in the private sector - I could name the blue LED off the top of my head, and got personal computers, search engines, smartphones, cloud computing, and integrated circuits with less than a minute of searching.