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Nevertheless, there are severe weaknesses linked to state capitalism. State controlled businesses absorb the capital and competencies that could had been used effectively by using private organizations.

 

State-controlled companies most of the time replicate others technology since they might leverage the government’s influence to relaxed others technology. They might end up aggressive in the event that they invest enormously in R&D.

 

State-managed companies make few mega investments rather of many small investments. The pioneering innovations globally are most likely interconnections of small new ventures.

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