You talk about the industrial revolution and ust say it happened. It happened because of the formation of corporations. They grew hand in hand and the government grew off the backs of industry and corporations.
Corporations have been around since the time of Justinian. Why didn't the industrial revolution happen back then?
Unter hasn't said the IR just happened. He has explicitly said it happened on the foundation of earlier advances during feudalism and the slave era.
You are placing too much importance on what you think government is innovating. It's not innovating much, it provides some funding for health care and it spends a lot of money to get some innovation from the military stuff, but it's more of a drain than a help. We could spend 90% less on military and we would be fine.
It's not innovating much? You can't be serious.