The National Nanotechnology Initiative: Federal support for science and technology, or hidden industrial policy?

The case of the National Nanotechnology Initiative highlights elements of industrial policy carried out by the U.S. government not only by setting rules and providing infrastructure, but also by strategically selecting technology of the next generation and arranging large-scale public investment. The federal government justified the Initiative by calling for the scientific need for industrial competitiveness, an explicit integration of science and technology policy and industrial policy. Moreover, we find evidence that this program, now funding almost $1.8 billion and extending to thirteen federal agencies, was initiated and drafted by a small handful number of policy makers in Washington. At the same time, despite its intention to strengthen the industrial competitiveness, the bulk of the federal government fund continues to channel into universities and government labs and little into the private sector. Whether this goal will be achieved without more direct government focus on commercialization remains uncertain.