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In this Letter, we present the size effects on chargeconductionin InN nanowires by comprehensive transport studies supported by theoreticalanalysis. A consistent model for highly degenerate narrow gap semiconductornanowires is developed. In contrast to common knowledge of InN, thereis no evidence of an enhanced surface conduction, however, high intrinsicdoping exists. Furthermore, the room-temperature resistivity exhibitsa strong increase when the lateral size becomes smaller than 80 nmand the temperature dependence changes from metallic to semiconductor-like.This effect is modeled by donor deactivation due to dielectric confinement,yielding a shift of the donor band to higher ionization energies asthe size shrinks. [ABSTRACT FROM AUTHOR]