"You can connect a keyboard, mouse, or even a joystick or other input device to your phone via Bluetooth and use it just as you would with a PC. USB is not supported for connecting such devices"-Google Nexus 4 online users manual
The lack of USB support could throw a wrench into the plans of some Google Nexus 4 owners who were planning on augmenting the 8GB or 16GB native storage on the phone by using a flash drive. With no microSD slot on the device, using a flash drive seemed a great way to expand the amount of native storage on the phone. But without USB support, that dog won't hunt.
source: GoogleNexus4Onlinesupport
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