Commercial product oriented research is already done in industry R & D. Besides many of the Universities have tech transfer dept to help researcher get their ideas to market. I am not sure if pumping more federal money in it will make a big difference. There is a chance that it might prove detrimental in the long run if it ends up discouraging researchers from working on challenging and more fundamental research problems.
May be I am looking at it from skewed view point (I blame it on my academic research background). It makes more sense when I think of federal funding for proof-of-concept centers as an effort from the government to help tech industry and thus economy at large and not University research.
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