Government is studied as a supporter of science and of the transformation of scientific discoveries into new technology and firm formation. The importance of scientific discovery outside academia is recognised, as is the experimental nature of the transformation process that entails frequent business failure. Competence bloc theory is used to understand the minimum set of competent actors needed for the incentive structure to be complete and the risk of losing the winners minimised. Competence bloc analysis also helps clarify the theoretical foundations of industrial policy and useful roles for science parks. It is found that to succeed as a catalyst for industrial competitiveness, park management should be less concerned with science and technology, and instead more concerned with the economics of the transformation process.