classic story of the US spending millions on developing pens that write in space while the Soviet Union just issued pencils

You used "story", so I'll assume you know this is mostly untrue, but for any of the lucky 10k that hasn't heard: https://en.wikipedia.org/wiki/Space_Pen#Uses_in_the_U.S._and_Soviet_space_programs

That story is apocryphal.

Pencils aren't suitable in space because the last thing you want are little wood and graphite shavings floating around the capsule.

Both the US and Russia used grease pens.

The Fischer space pen was developed by a private company with no public investment and was marketed to the government and public.

Not so much Navy as geography and allies' geography.