Corporations headed by market economics and governments are setting the overall direction for technology. Most of it is either aligned with their incentives from get go, or gets forced that way. As for examples i've read about two country wide cybernetic endeavors (Cybersyn and OGAS) torn to pieces by their governments.
> To what degree are Govermants and corporations supressing technological advancement?
Completely, but not less than other countries (because they still need an efficient army). Internet is not needed by any governor so all governments try to destroy it (with PIPA, SOPA, ACTA, GDPR and other soykaf). See "Rules for Rulers" by CGP Grey.