The scale of what government is capable of compared to government plus the private sector are not remotely comparable.
It is a statement of fact that if private companies were not entitled to the fruits of their research it’s literally impossible anywhere near as much research would be done, and literally impossible that output of that research would be further along.
What you’re describing is no longer a human civilization filled with humans. Free will is a core to what makes people people, and that means people being permitted to clash, disagree, and compete.
It’s not defeatist in any way. His weird fantasy world where work and investment aren’t rewarded sounds like a miserable hell hole.