The East India Company analogy separates the initial exploration of a route from the later business of exploiting it. In this comparison, governments finance exploratory voyages and bear the risk of finding nothing useful. Once a route and its destination are known, a company can estimate potential returns and raise money to operate along it. The same reasoning explains why a navy might pay for an unproved technology before a manufacturer can justify selling it.
Notable Point ยท 11:54-13:39
Exploration, proven routes and commercial investment
The East India Company comparison separates the risk of exploring a route from the later commercial work of operating along it.