YES, GOVERNMENT DOES CREATE JOBS

Aside from the obvious benefits of Keynesian stimulus, we have agencies of the Federal government funding start-ups, in this case the CIA:

Meet The Venture Arm Of The CIA
This story appears in the September 2, 2013 issue of Forbes.

ArcSight, Cupertino, Calif: Creates software to monitor digital threats that range from compromised data to system flaws. IQT invested in 2001. The firm went public in 2008 and was acquired by HP for $1.5 billion in 2010.
Keyhole, Mountain View, Calif: Uses satellites and aerial photos to create interactive 3-D models of locations across the globe. A year after IQT’s 2003 investment, the firm was acquired by Google GOOG -1.33% and is now a key component of Google Earth.
Systems Research & Development, Las Vegas, Nev.: Its products allow corporations and government agencies to map “non-obvious” relationships. It was acquired by IBM IBM -0.47% in 2005.
Perceptive Pixel, New York city: Purchased by Microsoft MSFT +0.34% in 2012, the firm developed the giant touchscreens that are best known for displaying election-results maps and making CNN anchors giddy.
Fluidigm FLDM +0.23%, San Francisco: Created technology used to quickly analyze markers from a huge number of genetic samples. It went public in 2011 and now trades under FLDM on the Nasdaq.