Role of Government

I'm curious to hear how government has contributed to the technological innovation ecosystem in your respective countries.  Have you found that government generally fosters or stifles your work?  I recently read something by an Ashoka - Lemelson Fellow about how government subsidies and international aid were driving down the prices of the products that he was offering, thus undercutting the profitability of his social enterprise.  On the other hand, I suspect that government can be a great source of funding or large-scale diffusion of innovations developed by inventors. Again, I'd love to hear your take on this.