It tends to be much more focused on bringing products to market, but of course they do. The transistor, the base unit of all of the microchips which make this conversation possible, came out of Bell Labs. And, as much as we might hate them for it, you have companies like Monsanto doing a lot of work on chemical engineering and genetics. Much of the work on AI (for good or slop) is being done in private sector labs now. Aeronautics research happens heavily in companies like Boeing and Airbus, though they are often working hand in hand with government labs (e.g. NASA, JPL, EASA).

Where Universities and Government really shine are areas like basic research and research which doesn't have obvious commercial applications. Which is why support for those organizations is so critical. Those areas of research often have long term effects and can result in entirely new areas of knowledge, research and products.

It's easy to think of large corporations as soulless organizations hell bent of accumulating wealth at the cost of anything else, because they are. But they are also surprisingly good at focusing wealth and effort to find new ways to do things cheaper, faster and more efficiently. Specifically because those things make money. Veritasium had a video on a good example of this recently.