Sounds similar to university applied research arms too.

GTRI locally hires a lot of non-students to work in its various labs. Its labs then pitch ideas to private companies and the DoD. Sometimes they're solicited directly if the lab is well-known and has a track record of delivering good research-oriented results. They research and build prototypes around various capabilities: robotics, avionics, even classified stuff.

They're always pitching, because contracts end or fall through, and that's the source of everyone's payroll. The labs can even be competitive with one another, and the individual researchers might spend time split between labs.

Academics as a service.