The government's initial research and engineering design sculpted the necessary hardware, software, and networking capabilities to make the Internet run. The Internet itself is a result in four primary governmental roles: research and development, subsidizing projects through defense contracts, implementation of standards, and training through public and private universities. These roles not only played part in creating the Internet and computer industries, but also promoted the growth and development of the Silicon Valley through the region.
Government's main role was funding and investment planning of the Internet. Since private firms have to worry about the margins and cost effectiveness demanding fast returns, a project with this time frame would not be feasible for a private firm to maintain. Starting with radio technology in World War I then later funding the radar projects for World War II, the Defense Department created the Advanced Research Projects Agency, to rationalize all spending by the government for research and development. ARPA's $14 million dollar budget was responsible for supporting computer labs around the country (49). In turn ARPA funded the development of six of the first twelve time-sharing computer systems (49), laying the frame work of hardware used in creating the initial networking project, ARPANET, that later evolved into the internet. I agree with Newman's belief that there has always been a strong symbolic relationship between the federal government and entrepreneurial companies seeking to enter the marketplace. Government looked to stimulate both economic and technological growth through contracting small private companies to take over the development of the Internet. Public subsidizing allowed smaller start-ups to compete with their bigger counterparts. .
Another role of government was its creation of standards. The evolution of the Internet was streamlined with the set standards that intergraded networks.
