Neither the CPU nor the router were invented in the last 10 years Paul, and the retreat to hardware makes for a weak case since new FABs are generally financed

Neither the CPU nor the router were invented in the last 10 years Paul, and the retreat to hardware makes for a weak case since new FABs are generally financed by banks and corporate bonds rather than venture capital. Neither my router nor CPU were produced in the United States, although that is beside the point. My point was that IPO and M&A activity are highly correlated with stock market performance. I can't run a regression analysis linking exit opportunities to international capital flows because there are no statistics on international investment in US stock markets, but it hardly seems radical to point out that the VC boom of recent years has been fueled significantly by the stock market boom. If strategic investment decisions were the primary driving force behind the success of the industry the industry should not be facing such a bad liquidity crisis right now. And perhaps this is harsh, but I don't see a lot of competence in the investment decisions which have been made in my own industry so I find your argument unconvincing. A lot of startups are competing against other startups and most funded companies in my space are disasters. But they all love AdSense, which means that as these companies flame out my ad-spend is going down and life is getting much nicer. Your suggestion that public policy should involving giving significant sums of money no-strings-attached to groups that seem responsible for major capital misallocation and band-wagon investment behavior seems beyond unjust. It seems crazy.