Just as rich countries use patents to let innovators capture monopoly rents and overcome the knowledge-market imperfection, developing-country governments should subsidize the pioneering investor in products new to their own economy because those investments generate learning spillovers (e.g., demonstrating Jamaica can run call centers) that the pioneer cannot internalize.

normativepending

Speaker

Dani Rodrik

Evidence Quote

it does make sense for Jamaica to want to subsidize the initial investor in that and often you know those investments will not pay it's just the nature of this

Source

Dani Rodrik on Globalization, Development, and Employment 04/11/2011EconTalk
Created: 6/16/2026, 2:24:26 PM

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