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By which metric would you measure this "efficiency"? The difference between VC-backed-startups vs traditional R&D departments is that the first one seems more
by demian 11y ago
By which metric would you measure this "efficiency"?
The difference between VC-backed-startups vs traditional R&D departments is that the first one seems more short sighted, and with a tendency towards a narrow subset of IT problems with high scalability and disruptive potential, while the second one works on a wide array of industries and applications where the parent company already has the benefits of economies of scale.
- malchow 11y ago"By which metric would you measure this "efficiency"?" Good question. A few ideas: -- ROIC -- Competitive advantage versus peers (hard to measure, but one attempt: http://web.mit.edu/is08/pdf/Parrish.pdf http://web.mit.edu/is08/pdf/Parrish.pdf) -- Share of market -- Enlargement of market -- Quality of hiring versus peers These are the things that can make a company last for centuries. The hunch I was stating -- though admittedly without a clear way to prove it yea or nay -- is that enterprises that invest in small nimble VC-backed technology companies will begin to outperform, on these measures, traditional in-house R&D departments.