Policies that convey static, short-term cost advantages but that unconsciously undermine innovation and dynamism represent the most common and most profound error in government industrial policy. In a desire to help, it is all too easy for governments to adopt policies such as joint projects to avoid "wasteful" R&D that undermine dynamism and competition. Yet even a 10% cost saving through economies of scale is easily nullified through rapid product and process improvement and the pursuit of volume irglobal markets something that such policies undermine.