The Importance of Institutional Incentives in the Development of Poor Countries

In some very poor countries, it's not rational to adopt those technologies because of the cost of labor. The second reason might be the system doesn't reward profit or risk taking. There is a recent study showing that the rate of return on capital is actually similar if you look across countries. It's not that people are missing big return opportunities, but the returns aren't so high in a lot of developing poor countries.