Yeah I think there are a lot of forces working in parallel:
Inertia of Bigger Companies
Drive to Short-Term Profits
Hard to invest in early stage ventures because expense can’t be justified.
Lack of Pioneers
There’s just more startups than big companies.
Big firms have R&D.
Yes but the stages from early stage exploratory R & D → Profitable company are rarely there. Most of the large company R & D products that succeed are either fast follow (creating a product in a space where there’s already proven demand) or come from turning internal tools into products (so the expense doesn’t need to be justified).
It’s very hard for large companies to keep around exploratory projects that are profitable to a very small market, and iterating around that small market long enough for the technology to be ready for a larger market. If created at all (when you can’t justify a larger market) they tend to get the plug pulled to early. Hard to justify putting people on a project that’s barely eeking by
Yeah I think there are a lot of forces working in parallel:
Inertia of Bigger Companies
Drive to Short-Term Profits
Hard to invest in early stage ventures because expense can’t be justified.
Lack of Pioneers
There’s just more startups than big companies.
Yes but the stages from early stage exploratory R & D → Profitable company are rarely there. Most of the large company R & D products that succeed are either fast follow (creating a product in a space where there’s already proven demand) or come from turning internal tools into products (so the expense doesn’t need to be justified).
It’s very hard for large companies to keep around exploratory projects that are profitable to a very small market, and iterating around that small market long enough for the technology to be ready for a larger market. If created at all (when you can’t justify a larger market) they tend to get the plug pulled to early. Hard to justify putting people on a project that’s barely eeking by