Since its inception, In-Q-Tel has invested in more than two dozen firms, such as graviton, a maker of tiny wireless sensors, and SafeWeb, which is developing software that allows users (and thus secret agents as well) to surf the web anonymously. The fund was first seen mainly as a pet project of the CIA director, George Tenet, who wanted to give the agency early access to technology developed in the commercial world. But several other federal agencies are now considering using In-Q-Tel's services or starting their own venture-capital funds.
It is not clear what the long-term effects of all this will be. Security is likely to play a bigger role in the design of technology — to the detriment of such things as additional product features, ease of use and performance. A more problematic outcome could be that the closer relationship due to the emphasis on homeland security will lead to a heavier regulatory environment for technology.
The rapprochement will, in any case, settle the question of whether the high-tech industry and government can remain at arm's length. As Intel's Mr Vadasz was heard saying at PC Forum: "We cannot say the net will have a huge influence on everyday life, and also say 'Hey Washington, keep out of it'."


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