Not if it had anything to do with what the person was working on. If it is something completely apart from job duties then you can do as you suggest
Case law is very clear on this
What I said was "but they think they CAN make a viable product, then the researchers can create a corporation to do that, license the basic technology, patent the incremental technology needed to make it a real product, and make money."
Yes, the university would own the rights to the basic innovation. The researcher would present them with a deal:
"You can partner with me, allow us BOTH to make money on this, and I will proceed with some ideas I have that may make this a profitable product. Or I can drop it, forget my ideas, and go to work on my next grant project. What do you say?"