In the opening chapters, we identified some of the reasons why governments in many countries have been drawn into direct and discriminating relations of support and collaboration with industrial firms. Yet we noted that this approach continues to face problems, both in being effective instrumentally and in maintaining legitimacy. This last part of the book examines the experience with several recent Australian versions of government participation in the high technology industries – both as a sponsor and as an entrepreneur. Part IV pursues three case studies: (a) direct grants and tax concessions for research and development, (b) procurement preference and offsets, and (c) exclusive telecommunications licences. In this chapter, we begin by noting the take-up of this approach in Australia, before moving to the first of the three case studies.

THE VEHICLES FOR SPONSORSHIP AND ENTREPRENEURSHIP

In recent years, Australian innovation policy has intensified the use of ‘positive adjustment measures’. We might commence by reiterating that, despite the apparent adaptability of the liberal legal approach to different roles, both state and national governments in Australia have reached the view that it can be too indirect, obtuse and uncertain an approach to promote their innovation policies. In order to encourage the kind of local foundation of knowledge, skills and networks which the country needs in order to be able to participate in the benefits of the worldwide revolution in technology, government has turned away from the traditional use of negative defensive measures, most significantly by substantially scaling down tariff barriers.