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A revolutionary technological development of the late twentieth century, photonics embraces lasers, fiber optics, imaging devices, and optical applications to computing. It affects the fortunes of numerous industries and, other than conventional microelectronics, may now be the leading arena for worldwide technological rivalry. While Japan has seen its photonic industries grow faster than any other high technology sector, the United States, where much of photonics originated, has experienced a declining industrial capability in world markets. Why is the U.S. floundering in this critical new technology? Are market solutions adequate as a national response to such massive technological change? After describing the history and economic implications of photonics, this book places these questions in the context of industrial policy debates about the proper role of government in response to strategic industrial sectors. The author then assesses the U.S. public policy response by examining various government programs directed at photonics. These programs add up to an implicit government photonics policy, but one that is shortsighted, incoherent, and unplanned. Sternberg concludes that it is this failure to plan that explains United States' retrogression in a critical technology.