Yeah, i think the creator mixed up his words. He means nationalize industries. I personnally think several industries should be nationalized: healthcare, including pharmacuticals, defense, education (college), transportation, and energy and all means of acquiring them, such as coal mining, etc. I also think nationalizing agriculture could be very beneficial, since today farmers often have to hold several jobs to stay afloat. Would make food doles much easier if we needed them as well. Insurance is a good idea, i would antionalize that too. Save doctors alot of headaches if you dont want to nationalize healthcare.
As for competition in regards to defense, you could simply have two or three different divisions within the governement, and reward those who succeed at developing the product. Give them a goal and a deadline, and let them go at it. China currently employs this system, and their military is advancing at a rapid pace. Their best tanks are better than ours although not as numerous, and their airforce is developing fighters that are as advanced, and maybe more so, than America’s. Defense is one of the few industries to be consistently capable of being nationalized effectively.