Nothing socialist or capitalist about it. Even if it was socialist you would get the same problems.

The sad thing about research is:

1. Negative findings do not get published. His leads to many labs doing research that they don’t know has already been futile. I can only imagine how many billions of research dollars get wasted.
2. Bias. Even the a post doc student with no pharma connections and funding from government has a huge conflict of interest: that conflict being, if you spend a couple years doing research and all your experiments don’t find results then you don’t get a job. Funnily enough, they always find something.