Often we see research institutions that rely more heavily on private funding for research because they don't receive enough core funding to operate research on their own, so they're forced to turn to other sources to make that happen. Business incentives that come from the government to encourage those private-public partnerships simply make it worse, because it's easier for a private corporation to get graduate students, who are much cheaper, to do the research, rather than pay them a full salary and benefits once they graduate.
On October 23rd, 2012. See this statement in context.