This paper addresses the problems of co-ordination and co-operation between the Commonwealth and State Governments in the delivery of science and technology (S&T) policy in Australia. Commonwealth industrial development strategies have attempted to integrate S & T into the economic system, and more recently the States have become involved in industry related S&T programs. A crucial aspect of the linkage of S&T to industrial development is the efficiency and effectiveness of the implementation and delivery of State and Commonwealth programs. An important element of efficiency and effectiveness is the co-ordination of State and Federal efforts in the area. Whilst States are principal actors in industrial projects, major S&T programs are administered federally and have little relationship to regional S&T and industrial activity. There is a case for greater co-operation and co-ordination between the State Government involvement in the allocation of Commonwealth S&T resources.