A growing number of U.S. industry ' s market shares are being overtaken by foreign competitors. These foreign competitors secure assistance from their governments in developing commercial applications for technology and thus have created a new world model for innovation. Based on quality control, systematic improvements in products and process, and short design-to-market times, this new model has revolutionized the way industry will compete in the future. To address this situation there have been a number of proposals to change current government structure to better support U.S. industry. This report investigates the current federal support system to assist industry and furthermore analyzes several of the policy alternatives recommended by recent studies.