“The supposed antithesis between price competition and innovation is false: they are different forms of the same competitive process. Innovation is competition.”
As Will Baumol pointed out in his book The Free Market Innovation Machine, big firms tend to do incremental innovation, while radical innovation tends to come from small entrants.
Many is the oligopolistic industry that has failed to innovate.
Tim Wu, whose fabulous book The Master Switch argues that the opportunity for new entrants to cause upheaval in technology and communication markets has always been created by a regulatory intervention.
Posted from Diigo. The rest of my favorite links are here.