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America's technology industry is becoming more and more intertwined with government. It has realised that the machinery of government in Washington can greatly influence its growth and profitability, and is becoming increasingly involved in lobbying. Conversely, the American government has become keenly aware of IT's crucial importance for the nation's well-being, heightened by the emphasis on homeland security. This should not come as a surprise, argues Debora Spar, a professor at Harvard Business School. "When technologies first emerge, there is a rush away from government and a surge of individualism. Over time, however, the rebels tend to return to the state." The reason public rules usually find their way into a technology, Spar argues, is because government can protect property rights and restore order. But it also happens when a technology becomes widely used. The chipmaker never had any ideological qualms about co-operating with government. In that sense, it has always been a mature company. Intel benefited from government money in the 1980s when it came under competitive pressure from Japanese manufacturers. Other Silicon Valley firms, too, owe much to the state. Oracle, for instance, grew out of a consulting job for the CIA, and the taxpayer stumps up for over a fifth of its orders. The Valley as a whole, however, did not develop a political conscience until 1996, when it successfully campaigned against a California ballot initiative that would have made shareholder lawsuits much easier. This alerted the region's leaders to the need to get more involved to defend their interests, leading to the creation of such groups as TechNet, a lobbying and fund-raising organisation. This environment also provided fertile ground for having a go at Microsoft. The antitrust case against the company might never have been brought without its competitors stirring up the trustbusters.

Reports on the losses incurred by Silicon Valley, California-based company, Sun Microsystems Inc. Total loss incurred by the company; Products manufactured by Sun; Factors that contributed to the continuous decline of the company; Competitors of Sun that have recovered after the technological meltdown during the late 1990s.