Reasons are considered for growing government intervention in scientific and technological progress, justifications for such interference and variations in the objectives sought by developed nations through their science and technology policies. Many governments of developed countries now place high priority on using science and technology policy to maintain and enhance the international competitiveness of their industries. It is hoped thereby to increase their living standards and reduce unemployment. The belief is widespread that to be effective such policies should be directed towards encouraging selected industries and technologies, as in Japan and Germany. Since Australian policies broadly have not been industry specific and technology specific, they need to be re-assessed in the light of these developments.