but what to do as the enterprise grows varies. And sometimes a state may coordinate production even early on. For example important technologies may be developed by university researchers and to enter production they are state-funded and forced to collaborate with other researchers, with a petty bourgeois payoff (salary, ownership that dwindles until it enters a certain tier, etc). The latter also happens under capitalism but the profits are entirely privatized, capital feeds off the state funding, whereas the point of this industrial policy in socialist states is to either build missing productive capacity, to socialize much of the gains, and eventually turn over to co-ops and state-run enterprise, etc.
ok, i can understand this. so it's small-business are private run while bigger businesses are organized differently?
to sum it up, i'd like to add a point. businesses spend money mostly on 4 categories:
- raw materials
- wages for workers
- machinery (this one has to be largely paid up-front)
- profits to shareholders
so to "socialize much of the gains" means that company profits are either redirected to the community ("state-run enterprise"), or redirected into extra wages ("co-ops"), am i seeing this correctly?