National Industrial Policy – Private Capital and The America’s Frontier Fund Steps Up
This article previously appeared in The National Interest.
Last month the U.S. passed the CHIPS and Science Act, one of the first pieces of national industrial policy – government planning and intervention in a specific industry — in the last 50 years, in this case for semiconductors. After the celebratory champagne has been drunk and the confetti floats to the ground it’s helpful to put the CHIPS Act in context and understand the work that government and private capital have left to do.
Today the United States is in great power competition with China. It’s a contest over which nation’s diplomatic, information, military and economic system will lead the world in the 21st century. And the result is whether we face a Chinese dystopian future or a democratic one, where individuals and nations get to make their own choices. At the heart of this contest is leadership in emerging and disruptive technologies – running the gamut from semiconductors and supercomputers to biotech and blockchain and everything in between.
National Industrial Policy – U.S. versus China
Unlike the U.S., China manages its industrial policy via top-down 5-year plans. Their overall goal is to turn China into a technologically advanced and militarily powerful state that can challenge U.S. commercial and military leadership. Unlike the U.S., China has embraced the idea that national security is inexorably intertwined with commercial technology (semiconductors, drones, AI, machine learning, autonomy, biotech, cyber, semiconductors, quantum, high-performance computing, commercial access to space, et al.) They’ve made what they (Read more...)