Late developers need state-underwritten risk because industrialization capital exceeds individual capacity

Evidence

All late developers have a scale problem. To catch up with already industrialized states, the state in a late developer must underwrite the risk involved in investment because the scale of the capital required to industrialize after other states have done so outstrips the capacity of any individual entrepreneur to do so—hence the size, structure, and longevity of German firms. — Mark Blyth, Austerity, 359

Categorization

• XREF: Connects to Gerschenkron’s late-development theory and to Mattei’s account of how austerity in late developers differs from core states. — connects to: Exported capital requires strong state power over new domains; Timing of industrialization determines how interventionist a state becomes — Mark Blyth, Austerity: The History of a Dangerous…, 357; Risk-prone expansion drives state intervention beyond mere apparatus preservation (+1 more)

Broader Connections

• Risk-prone expansion drives state intervention beyond mere apparatus preservation #expands (0.85)
• Timing of industrialization determines how interventionist a state becomes #corroborates (0.82) — Mark Blyth, Austerity, 357
• Industrial civilization can develop inside a feudal-bureaucratic shell #corroborates (0.78)
• Exported capital requires strong state power over new domains #expands (0.72)