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I guess the more positive way to look at it would be as a way to get at least some return on the investments you made in R&D. Even if that investment doesn't l
by soylentcola 11y ago
I guess the more positive way to look at it would be as a way to get at least some return on the investments you made in R&D. Even if that investment doesn't lead to direct sales profits, you get a bit from others who successfully build on your developments.
Sure, it's never that simple in practice but I do understand the theory. Let's say "Company A" spends billions on autonomous car development but they also deal with every new problem and challenge as it comes up. As a result, subsequent products from competitors can avoid much of the trial and error thanks to the groundwork already covered, along with underlying tech that's been developed. This way, Company A still gets some compensation for the money and work they saved Companies B, C, and D on the way to their more successful consumer offerings.