But funding opensource projects is by definition transparent. Sure, there might be some politics involved in the selection. However, I see many cool projects when I scroll through the list of NLNet: https://nlnet.nl/project/current.html
Furthermore, the amount of funding for these projects is peanuts for governments.
I'm not fully qualified to talk of the OS side, however the commercial side has some ridiculous ideas.
For instance, I once looked at a R&D program for commercial software for which one of the cornerstone criteria was that you HAD to build your software on top of some discount "EU-developed" tools like some bespoke databases and such.
I think anyone who has spent any time building actual stuff to sell on the markets will see how detrimental this system is.
Furthermore, the amount of funding for these projects is peanuts for governments.