Government's proper role is as a catalyst and challenger, it is to encourage or even push-companies to raise their aspirations and move to higher levels of competitive performance, even though this process may be inherently unpleasant and difficult. Government cannot create competitive industries, only companies can do that. Government plays a role that is inherently partial, that succeeds only when working in tandem with favorable underlying conditions f in the diamond. Still, government's role of transmit ting and amplifying the forces of the diamond is a powerful one. Government policies that succeed are those that create an environment in which companies can gain competitive advantage rather than those that involve government directly in the process, except in nations early in the development process. It is an indirect, rather than a direct, role.