When people expect the government to do something they stop doing it privately. This makes the ability to do it privately atrophy like an unused muscle. This leads to a situation where if the government doesn’t support something it just doesn’t happen.
It is not inherently bad for governments to do things.
The historical example is innovation in China - it was supported by government … until it wasn’t.
Governments are involved in permission progress per Permissioned and Permissionless Progress