I don't think that state-sponsored capitalism is a contradiction in terms, at least not from a historical standpoint. Capitalism has flourished in those areas where capitalists were able to get governments to pass favorable legislation. In the United States, the country most associated with laissez-faire capitalism, the federal government has long supplied cheap (or free) land for railroads, favorable contracts, and subsidies to capitalists in order to stimulate economic activity. And of course, when capital faced off against labor, the US government, at least before the New Deal, inevitably sided with capital. I think we confuse capitalism with free enterprise, and the two, esepcially in the modern age, are not the same thing.