Class 18: The role of government in innovation

Such breakthrough innovations as the Web, jet engines, DNA, microchips, computers, jet planes, massively parallel processors, and numerous others were a direct result of government funding or policies. The question for any firm is how to take advantage of such policies. The case illustrates when and how a government may intervene.

 

Reading: Chapter 15

Case: "Uncle Sam's helping hand." The Economist. April 2, 1994

 

Study questions:

(1) Do you agree with The Economist that Sematech was a waste of money and time? What would you have advised the government to do?

 


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