>How is this relevant, and what does is even mean?

Some of the most productive research we could possibly do is basic research. But because basic research doesn't directly produce monetizable practical improvements, it doesn't get private funding (besides Bell Labs analogs) and is in practice woefully underfunded.

This is a failure of resource allocation that is attributable directly to capitalism.

I'm not advocating a communist revolution here, just pointing out a downside to capitalism.