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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.

Discusses the dissatisfaction of powerful computer industry executives in Silicon Valley, California to President Bill Clinton's policies which negatively affect the computer industry. Clinton's decision to ease export restrictions on computer decoding software; President's lukewarm support of the telecommunications reform measure.

Criticizes the attitude of computer companies in Silicon Valley in Santa Clara, California on the recruitment of minorities. Efforts of Silicon Valley businesses to expand H-1B visa program; Views by Afro-American professionals on the hiring practices of Silicon Valley companies; Controversy on H-1B visas in northern California.

Reports that in Silicon Valley, California, the way to tell how a company is performing is by how crowded the parking lot is after the normal workday ends at 7 p.m. Highlights of a survey that was conducted at the parking lots of Cisco System Incorporated, Oracle Corporation, Yahoo! Incorporated and Excite Incorporated, all computer-related companies. INSETS: Between the lines;Driven, but practical.

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.

The article presents a fictional look at how traditional businesses are responding to the collapse of the Internet industry in the United States. The author claims that traditional businesses are blaming the industry for the recession. They also treat executives responsible for the industry as a security risk. Lastly, he shows the conditions of companies in the Silicon Valley and how they have disappeared after the event.

Opinion. Looks at how computer companies in Silicon Valley, California, have reacted over the United States Justice Department's antitrust suit against Microsoft. Claims made by Microsoft against the Justice Department; Reasons for the antitrust investigations and lawsuit; Details on the reactions of companies towards the suit.