This paper analyzes the relationship between effective state intervention and Information Communications Technology (ICT) dissemination. I theorize that investment in ICT leads to benefits for all firms; without government intervention and incentives, firms will have little reason to invest substantially in this arena. I demonstrate how the collective action problem leads to a lack of private investment as highlighted by the prisoner’s dilemma game. I conduct a multi country regression test to ascertain the factors that influence the dissemination of IT. I then analyze the impact of the United States and South Korean government on ICT by process tracing the role of each government in the dissemination of ICT. My results support my hypothesis. The policy implications for this study are the increase in the level of US government involvement in ICT through encouraging private sector participation, creating new laws, and increasing access to technology in public education.