After receiving tens of millions in taxpayer dollars in 2009, Waltham battery maker A123 Systems Inc. ramped up quickly, ultimately increasing production much faster than the electric vehicle market grew. The result was bankruptcy and the purchase of A123’s assets by a Chinese company on Tuesday.
The next day, another alternative energy firm that won tens of millions in government support opened a pilot plant in Bedford. But this plant was completely financed by private investors, and the company, solar component maker 1366 Technologies, has agreed not to tap its $150 million in federal loans until it proves its technology can succeed.
Comments
The Commonwealth still hasn't learnd its lesson. When the state becomes the lendor/investor of last resort, that should send up a red flag. The state would be better served by making direct grants to research organziations with claims to any commercialization of their efforts. While still risky, it is much better than trying to pick winning companies. Government funding of basic research is a well established practice in the US.