Yes I noticed that too about the tech layoffs. Especially nowadays, corporations seem extremely uninterested in competing to make newer better products.
I think maybe we mean the same thing when you say “Private sector is very good at operationalizing existing technology”. The Nintendo Switch was never a technological marvel, even when it was first released. It’s an attractively assembled collection of other people’s technology. The Switch is “innovative” in a way, mostly in functional product design, but it’s not science.
One thing to note is that car infrastructure maintenance (e.g. upkeeping roads and bridges) is often paid for in substantial part through a gas tax. Electric cars don’t pay the gas tax, so they are essentially freeloading. In the future, this may change, but this is one reason why EVs are currently cheaper than ICEs.