through volume production, and to find wider application for IC technology in industrial and commercial applications.96

Government procurement remains a policy tool under discussion in connection with emerging “green” technology industries in the U.S. which confront uncertain near-term demand for their products. The U.S. military is interested in electrification of numerous combat and logistics platforms that would require use of high-performance batteries, including the Army’s vehicle fleet and unmanned aerial and undersea vehicles being developed by the Air Force and Navy, respectively. Military demand could provide a market for U.S. battery makers in the event that demand for batteries for civilian vehicles does not grow substantially.97


In an era in which state budgets are under growing pressure, a vast array of federal programs and research organizations represent a diversity of resources that state and regions can draw on to help support local innovation initiatives.

•   A panoply of federal programs is now being directed toward the fostering of local innovation clusters, support for innovative start-ups, enhancement of U.S. manufacturing competitiveness, and the creation of public-private innovation partnerships.

•   Federal regulatory policies since 1980 in the realm of competition, intellectual property, and trade have played a critical role in stimulating innovation in the U.S. economy.


96National Bureau of Standards, the Influence of Defense Procurement and Sponsorship of Research and Development on the Development of the Civilian Electronics Industry, June 30, 1977.

97Presentations by Grace Bochenek and Sonya Zanardelli, U.S. Army Tank-Automotive Command Research, Development and Engineering Center; John Pellegrino, U.S. Army Research Laboratory, National Research Council, “Building the U.S. Battery Industry for Electric-Drive Vehicles: Report of a Symposium,” July 26, 2010.

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