In Australia, we're still largely trying to make PPPs work (hint: it takes more than 1 year funding and partnership to build & execute value). However it has been proven successful elsewhere in leading to substantial economic development, significant operational capability uplift and more.
Project IKE was a prototyping exercise funded by DARPA (US) back in 2013. The Contractor (Two Six Labs) has since scaled, commercialising the product in collaboration with US Defence Agencies (Navy etc). The product is now transitioning to US Cyber Command as a key cyber readiness and analysis platform.
Commercialising R&D is not impossible.