Should the US Government assist battery manufacturers ?

A New York Times article (‘Does America need manufacturing”, August 24, 2011) described the supply chain impact of federal govt investment in battery manufacturing – the potential impact on scientific research, mining, building contractors, designers, engineers and shop floor employees. The article estimates that manufacturing employs 65 5 of US scientits and engineers.  Should the federal government consider its role as the nurturer of the supply chain and make investments that are an externality to the supply chain ? Would such govt investments be considered as competitive responses, since other govts such as the Korean or Japanese govt do so regularly ? Should we include the “jobs not created” in the calculation of the benefit of such Federal investments ?

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About aviyer2010

Dean and H. William Lichtenberger Chair in Management at the School of Management, University at Buffalo, State University of New York.
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