S/E/55. In what ways does the market fail where science and technology are concerned and can the government usefully address such failure?

From the evidence, we can infer the optimal role for governments in the S+T market. First, the state is well placed to provide resources to fledgling firms in experimental fields. Second, technology agencies should seek to operate in partnership with the private sector. Third, governments are needed to encourage and provide incentives for collaboration between private sector institutions. Fourth, governments should implement strong competition policies that forces companies to innovate to compete.