How does NIF differ from industrial policy?
NIF is not industrial policy because it is not about picking industrial “winners”. Rather than taking the view that some industries are more important to the U.S. than others, NIF is based on the idea that innovation and productivity growth can happen in any industry and that the nation benefits regardless of the industry in which they occur. Moreover, NIF decisions about which proposals to fund and which firms to assist would be based on collaboration with industry rather than Washington telling industry what to do. When businesses come to NIF with proposals, NIF would evaluate them with the assistance of knowledgeable experts from the private sector and academia. Finally, a significant share of NIF funds would go to support states in the kinds of technology-based economic development activities that transcend politics. That is, funding will be available regardless of what party controls the legislature or the governor’s office.
