Hmm, I wouldn't write off the value of "bad industry-focused" research too quickly.

"Industry focused" doesn't necessarily mean it's looking to push the needle of industry much yet. Often the first paper academics and students do in an area will really be about trying to take an industry problem into the lab, to see if they can prod it and discover what's interesting about it. Not yet about trying to push their research out into industry. Little experiments are how we get to look at new problems for the first time when we're not close enough to buy you a beer. And little papers are how we get to start discussing what we're doing with our peers at other universities. In a sense, where start-ups have Minimum Viable Products, PhD students and academics have Smallest Publishable Activities to start exploring a new area ;)

Sabbaticals and internships are a lovely idea, but it's increasingly hard to get universities to give leave to do that. (Backfilling an academic's teaching can be surprisingly hard to arrange, and then there's the academic's service roles for the university, their PhD, masters, and honours students, etc) So I expect most academics will always have many more research interests than sabbaticals / placements.

Ok, those are the constraints - on to the value:

Most universities do focus fairly heavily on industries in their area. (eg, agriculture in regional areas). But it's not a good idea for all their research to focus on that. If we teach in an area, we want to be at least somewhat research-active in it, as that's how we keep teaching from stagnating. And in lots of countries, students find it too expensive to move far from home, so they study at a uni they're in the catchment for. So unless we want to shrink the future pool of employees to children who grew up in academic-beer-buying-reach of a company in that industry, we really do need some research happening at universities outside beer-buying distance. Which means you'll get a bunch of "bad industry research" papers as they first explore the area.

You might not want a new multi-hop algorithm. But a graduating masters student who's designed their own multi-hop algorithm with different characteristics, and undergrads having had some exposure to the problem...

And sure, the interaction design student might only have developed their app for one mobile platform, not several, and only tested it with a dozen people not a million. But really that's because we figure it's probably sensible to find out if it was even worth writing for one platform, before we spend so much of that government-funded time on writing it to work across several...

There's quite a few things industry, such as Google, could do to help if you're keen to make the match between research and industry closer. One is to disseminate your problems, not just your libraries.

If Google emailed "here's a good small problem and project we'd be interested in" (a different problem to each university), I doubt there is a CS department in the world that would refuse to offer it as a project for their honours students. (Which means the faculty who supervise the students would be looking at the problem with interest too.) The academics would just need to know it's a unique problem for them -- that they're not being asked to compete with an unknown number of other honours students and academics around the world on the same problem (which really would be inefficient as well as unfair on the students).